The 10-nation ASEAN’s 2015 integration looks right on track as its member-countries’ economies continue to outpace the world. And the region’s real estate market looks very promising in supporting this integration.
In the run-up to this year’s World Economic Forum for East Asia held in Myanmar’s capital Naypyidaw, Jones Lang LaSalle has identified the real estate trends and opportunities that will help support the region’s eventual economic integration.
According to the global real estate consulting firm, despite the slowdown during the first quarter of 2013, the region’s large economies anticipate growth for the remainder of the year. For instance, strong investor demand and consumer spending will help Indonesia achieve its target growth of 6.1 percent for 2013. The Philippines, meanwhile, is well on track to achieve its 6 percent target after posting a 7.8 percent GDP growth in the first quarter.
Chris Fossick, Jones Lang LaSalle’s managing director for Singapore and Southeast Asia, said this growth translates to robust domestic investment into commercial property, which will help drive demand for office and logistics property. In addition, increased consumer spending will drive the developments of malls and other retail properties. Fossick added that Southeast Asian economies are now increasingly becoming transparent, which will ultimately spur regional growth that in turn will encourage investment.
He said,
There is a role for the [real estate] industry in areas such as infrastructure, housing, education, healthcare, tourism and industry and trade, which are all inextricably linked. 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.
According to Jones Lang LaSalle, increased corporate real estate activity is enhancing the pace of transparency improvements in Indonesia, the Philippines, Vietnam, and Thailand. These countries have experienced the most progress in transparency among Asia–Pacific countries, and rank among the top 10 improvers globally in overall transparency scores due to greater availability of market data and incremental changes in the regulatory and transaction processes.
