In an effort to expand their portfolios, Singapore-based real estate companies are increasingly eyeing Southeast Asian markets such as Vietnam, Indonesia, Malaysia and the Philippines.
While most developers consider expanding in China and India, they believe that population growth in Southeast Asia will boost demand for their services over the next few years.
Loh Wai Keong, Chief Executive of Ascendas Southeast Asia, said, “The economic rise of Asia goes beyond the emergence of China and India as economic powerhouses. Asean is a major contributor to Asia’s growth and has made significant progress towards economic integration and growth.”
“The South east Asian markets such as Malaysia, the Philippines, Vietnam and increasingly Indonesia offer potential for rapid growth to businesses with the right skills and preparation.”
Keong believes that Vietnam has high growth potential and said that his company is currently studying the Indonesian market.
Meanwhile, Nina Yang, Executive Director of CPG Consultants, expects demand for Ascendas’ urban planning services across South east Asia to increase as the rate of urbanisation grows.
By 2050, the world’s population will increase by one billion. Around two-thirds of this growth is expected to be contributed by Asia, said Yang. She added that to date, around 1.6 billion people live in cities across Asia and that this figure will increase to 2.5 billion by 2050.
“This works out to a stunning rate of an increase of 120,000 city population a day, and translates to a mind-boggling 140 Singapore to be built in 40 years — or 3.5 Singapore every year,” said Yang.
“Hence, there is certainly potential for more work in Southeast Asia.”
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