Real estate investment in South East Asia is expected to erupt in the coming years, according to Jones Lang LaSalle.
Speaking at the World Economic Forum on East Asia, the real estate consultants predicted that the property market would play a big part in the growth of the Association of Southeast Asian Nations. The ASEAN group forecast that urbanisation will continue, pushing up demand for housing and commercial real estate, while increasingly affluent populations will see domestic and international tourism climb, introducing demand for hotels and resorts, particularly in developing countries, such as Myanmar and Laos.
Infrastructure development, from hospitals and schools to colleges and manufacturing facilities will also grow significantly.
"Major differences between ASEAN markets such as foreign property ownership, alien business laws and tax system need to be fine tuned. Once these areas are managed efficiently, the gap in competitiveness among the real estate markets in ASEAN should become narrower, and every market will then be able to capture most, if not all, of the opportunities that will follow the connectivity and collaboration within the sub region," said Suphin Mechuchep, managing director of Jones Lang LaSalle Thailand.
"For example, investors from more developed economies in ASEAN should be more confident to expand to property markets in newly opened economies like Myanmar, Laos and Cambodia where new business opportunities are abundant. At the same time, the less matured real estate markets in these countries will benefit from a better inflow of capitals as well as the transfer of tested business process, expertise, know how and technology," he added.
As the real estate markets then become stronger, they will start to attract investors from EMEA and the Americas, Mechuchep concluded.
"This is a great opportunity and responsibility for all those involved in the industry," concurred Chris Fossik, managing director of JLL South East Asia.
Source: Property WireGoogle+