By Nikki De Guzman:
In line with ASEAN economic integration by 2015, the region’s real estate markets, especially the commercial sector, are expected to see increased demand, according to a new report by Jones Lang LaSalle.
Released in conjunction with the 2013 World Economic Forum East Asia in Myanmar, the report underlines the real estate trends and opportunities in emerging markets. The consultancy noted that Southeast Asia’s economy continues to perform better than the rest of the world, with Singapore still the commercial and financial hub.
Chris Fossick, Managing Director for Singapore and Southeast Asia at Jones Lang LaSalle, said: “This growth translates to robust domestic investment into commercial property, driving demand for office and logistics space. Increased consumer spending will boost demand for expanded retail formats, which in turn will support the developments of retail malls and the subsequent accompanying infrastructure in emerging markets.”
In the office markets, expansion plans by several businesses will push up demand as vacancy levels drop to historic lows by 2014. Meanwhile, the industrial and logistics markets are not expecting any slowdown in demand. The retail sector, on the other hand, is expected to remain strong with Jakarta maintain the lead regionally.
The property markets are also showing more transparency which leads to regional growth encouraging investment. Singapore, Malaysia, Philippines, Indonesia, Thailand and Vietnam are the most transparent markets regionally for 2012.
As such, the region’s property industry is in “a unique position to influence and be involved in many key aspects of development” including housing, infrastructure, industry and trade among others, Fossick added.
“This is both an opportunity and a challenge for our industry and we need to work closely with both private and public enterprise to ensure real estate adds full value.”
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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