Property Market in Asean: Booming, But Be Careful

by Michael on September 20, 2012


There are plenty of opportunities for investors, but also plenty of opportunities to sink your money. Many things to consider, must do thorough market research before, sometimes countries that might seem attractive can later turn sour because of banking issues (Vietnam for example has a 18% interest rate and a 20% inflation).

Regarding Myanmar: looks good, but unpredictable government policy, changing political situation. Poor infrastructure. Weak enforcement of laws and regulation. Unreliable banking.

Manila: fast growing office sector (driven by outsourced service centers & call centers). Low vacancy rate in business districts (4,3%). Investment yield in Philippines: 6.6% (compared to 3-4% in Bangkok). Downside: lack of good mass transit system.

Jakarta: robust growth in retail, condo and office sector. According to Suphin Mechuchep (managing director of Jones Lang LaSalla Thailand) most attractive Asian property investment market. ROI for condos: 6-8%, sector driven by real buyers, not speculators.

Singapore: still room for porperty investment, but prices very high.

Source: Bangkok Post: Asean property hot but buyer beware.

 

 

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