By Andrew Batt:
Wealthly Thais are increasingly looking towards Yangon – ahead of London – for their major investments according to Cluttons International Private Capital Survey 2012 which has been published today in association with VPC Asia Pacific.
The global survey revealed that more than 57 per cent of overseas high-net-worth individuals (HNWI) named London real estate as their top target investment class.
A spokesperson for the authors told DDproperty.com: “Our sentiment survey clearly shows that while Thai High Net Worth individuals are still looking to London as a major investment target, they are also looking closer to home.
“There is no doubt that Yangon is increasing its attractiveness. As the country opens up yet further, there are opportunities for the investors to get in on the ground across asset classes. And as the recovery quickens in Asia Pacific, hard assets such as real estate become more attractive not only for investors within the region but also coming from outside. Stocks and bonds remain volatile when compared to property; there is no reason that Myanmar can’t benefit from this investment.”
Also bucking the regional trend were Indonesian private investors were are looking to Singapore and Australian residential investments ahead of London. HNWI investors who were surveyed both Singapore and Kuala Lumpur identified Central London residential as their primary offshore investment target. HNWI in Bangkok ranked London behind Yangon (Myanmar).
Global appetite for both London residential and commercial real estate assets has seen an upturn in the last 12 months with overseas investors (both institutional and individual) contributing almost 90 per cent in recent commercial asset transactions.
However, headline reports of ‘safe haven London throughout the global economic crisis’ although not inaccurate should not be overplayed. According to Cluttons some 86 per cent of HNWI pinpointing London as their top investment city already have strong ties to the U.K., whether through second homes, children’s education or expansion of existing investment portfolio. London has always been a solid investment choice.
A total of 71 per cent of HNWI surveyed said they were planning investment activity in the next three- to six-months in their first choice target city. And at over two-thirds higher than last year, investors stated that the target city will be outside their domestic market.
Those well-seasoned Middle Eastern investors interviewed identified London as their first choice city. In particular, HNWI from Dubai and Manama (Bahrain) were continuing to look at prime Central London residential as the obvious target location.
Growing demand pressure on this scarce asset class will drive values up further. Some 57 per cent of HNWI surveyed cited strong capital growth as the primary appeal; the rapid recovery of Central London residential from the impact of the global credit crunch is a key factor influencing investment decisions.
James Wong, Managing Director, VPC Asia Pacific in association with Cluttons, said: “This new survey takes a unique insight into the ‘live’ investment intentions of HNWI across the Middle East and Asia Pacific regions. Quite remarkably, 43 per cent of these highly mobile investors state that the global financial crisis has had no impact on their view of London as a top investment target location. In fact, almost a third (29 per cent) went on to claim that London is better-placed because of the Eurozone difficulties.”
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