ASEAN Real Estate

CEIC Gallery/World Trend+ Database - January 6, 2016 Summary The establishment of an integrated ASEAN economy leads to a boost to ASEAN’s commercial real estate market across the region. This is due to the fact that the business environment within ASEAN will be much more vibrant in the upcoming 2016. The rise of demand will lead to the opportunity for growth in the real estate sector. However, some limitations that ASEAN need to overcome were raised in the report from CBRE research such as an ill-managed institutional supply pipeline and the lack of complementary real estate investment policies to promote the liberalization of investment policies and free flow of capital. Despite these limitation, market observers remain optimistic about the real estate capital inflows, going by positive trend in ASEAN in the last decade. All charts below provide a current and historical trend of real estate sectors in ASEAN, both residential and commercial property aspect. Residential Chart 1 – 3 illustrate trends of the growth of residential property price, and both nominal and real residential property price. From these three charts, Singapore’s residential property price greatly dropped due to the Global Financial Crisis in 2009, then it recovered to the highest growth in 2010. In 2015, residential property price in Singapore slightly decline owing to interest rates normalization and increase of new developments expected to be completed in 2016. Chart 4 – 6 indicate that residential property stock in both overall and metro area in Thailand, Malaysia, and Singapore have been increased over the past decades. In addition, the amount of property sold in Malaysia ranked the highest compared to Singapore and Thailand. Singapore faced a continue decrease of the number of property sold since 2013; however, the figures in Malaysia and Thailand have remained stable. Metadata From 1 July 1996, foreign currency securities sold under repurchase agreements are retained for accounting purposes as foreign currency investments in the Bank's balance sheet, in accordance with standard accounting treatment. For the purpose of reporting foreign exchange reserves, however, securities sold under repurchase agreements are excluded. Commercial The establishment of an integrated ASEAN economy at the end of 2015 is expected to benefit the industry sectors of member states leading to positive impact to office and retail markets. This will increase office demand as more multi-national companies step into the market and more regional SMEs expansion. Chart 11 indicates that as the FDI inflow to Singapore rose, Singapore office occupancy rate has also increased in 2015. In addition, chart 12 also show that both Singapore and Malaysia has a slightly growth in office floor space recently. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog

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