theSun Property January 2016

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ON FRIDAY JANUARY 29, 2016
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the global macroeconomic picture.
Colliers.comAsia Pacific CEO
DavidHand shares his sentiments –
“On real estate capital flow, we
predict that themajority of Asia-
based real estate investors will
continue to look for opportunities
to invest within their home region.
The cost of funding will head south
inmarkets such as China and India,
while real estate yields will likely
increase. US interest rates will edge
up gradually in 2016 and bring the
region into centre stage for
investment. We believe the volume
of real estate sales transactions in
Asia will increase, with an
increasing number of motivated
sellers coming tomarket and
offering stock for sale. Lured by
attractive yields, more long-term
investment funds will invest back
in Asia this year.”
Interestingly, the Property
Report Congress held in Singapore
end of last year acknowledged
renewed interest in property in
Vietnamespecially in 2016. This is
said to be due to the easing of
foreign ownership rules.
Participants at the conference also
voted Vietnamas themarket to
performwell this year, ahead of
Thailand, Indonesia and
Philippines. Comment on
Singapore was that the industry
there will feel the effects of the
heavy-handed coolingmeasures
while Indonesia andMalaysia will
not performas well as before due to
currency depreciation.
Followour column next week as
we zoom in on the property scene
inMalaysia.
PART3 IN our series on the global
property outlook over the past
weeks, we published the views
of industry professionals on
markets in the US, UK and
Australia. This week, we take a
brief look at neighbouringmarkets.
ASIAN REGION
According to
the idea of an economic bloc in this
part of the world is finally coming
to fruition after 30 years of
discussion. Andwhen it does, “this
will lead to a singlemarket of over
600million people, making the
regionmore attractive than any
single nationwould be on its own.
This will also boost the regions
long-termprospects”.
On the whole, the world has its
eyes on Asia, deemed verymuch
the “land of opportunity” in this
part of the world. With its growing
wealth and rapidly evolving cities
creating dynamic real estate
markets packedwith potential, 2016
is expected to be another record
breaking year in terms of
transaction volume says Stuart
Crowwho heads the Asia capital
markets. “But investment strategies
are changing and as Asianwealth
grows, a lot of it is staying in the
region instead of finding a new
home overseas,” he adds.
Managing director for Beijing
andNorth China, Julien Zhang
shares that with the huge
transformation China has
undergone in the last fewyears, one
can expect evenmore change in
2016with government reformplans
and policies in the pipeline to
materialize this year. However, the
residential sector in Asia is
expected to be quieter this year
after all the rampant market
activitywhichmay cause Asian
investors to look at other cities for
investment opportunities.
Nevertheless, as JLL stated that
Asianwealthwill remain in Asia,
the overall outlook for property in
Asia will remain positive,
notwithstanding the challenges in
As urbanisation drives transformation, which in turn
influences the real estate and property markets (see the
overall economic view below) said to spur the property
market in Asia.
ASIA CAPITAL MARKETS
Asia continues to be a choice destination for offshore real-
estate capital, driven by its ongoing urbanization and rapidly
expanding middle class.
ASIA LOGISTICS MARKET
Logistics sector in Asia looks very exciting in terms of
expansion into new locations for development and the
adoption of innovative business models by various players in
the market.
ASIA OFFICE MARKET
Technology companies will drive growth across Asia in 2016,
especially e-commerce operators. These companies will
continue to display a strong appetite for high-quality space in
core locations, while also expanding to new locations to
attract quality talent.
ASIA RETAIL MARKET
Despite some gloomy predictions frommainstream
commentators about a slowing of growth in markets across
the region, a clear-sighted analysis of the basics of the
underlying demographic shifts and consumer behavior at
work in Asia show it to be the most energetic and exciting
market in the world.
[Information retrieved from ]
Property outlook
>Viewonwhat is expected in themarket across Asia
Singapore
PHOTO: HOLIDAYHOMETIMES.COM
Property inMalaysia.
Country/city Long-tern investment rating Gross rental yield
(%per annum)
Malaysia, Kuala Lumpur Ì Ì Ì Ì 4.57% Poor
Thailand, Bangkok Ì Ì Ì Ì 5.13% Moderate
Indonesia, Jakarta Ì Ì Ì 7.05% Good
The Philippines, MetroManila Ì Ì Ì 7.51% Good
Cambodia, PhnomPhen Ì Ì 5.33% Moderate
Hong Kong Ì Ì 2.82% Very Poor
India, Mumbai Ì Ì 2.22% Very Poor
Japan, Tokyo Ì Ì 5.02% Moderate
Singapore Ì Ì 2.83% Very Poor
China, Shanghai Ì 2.66% Very Poor
Taiwan, Taipei Ì 1.57% Very Poor
Apartments in Suzhou, China.
[Retrieved from ]