By Nikki De Guzman:
In
line with ASEAN economic integration by 2015 the region’s real estate
markets, especially the commercial sector, are expected to see increased
demand according to a new report by Jones Lang LaSalle.
Released
in conjunction with the 2013 World Economic Forum East Asia in Myanmar,
the report underlines the real estate trends and opportunities in
emerging markets. The consultancy noted that Southeast Asia’s economy
continues to perform better than the rest of the world, with Singapore
still the commercial and financial hub.
Chris Fossick, Managing
Director for Singapore and Southeast Asia at Jones Lang LaSalle, said:
“This growth translates to robust domestic investment into commercial
property, driving demand for office and logistics space. Increased
consumer spending will boost demand for expanded retail formats, which
in turn will support the developments of retail malls and the subsequent
accompanying infrastructure in emerging markets.”
In the office
markets, expansion plans by several businesses will push up demand as
vacancy levels drop to historic lows by 2014. Meanwhile, the industrial
and logistics markets are not expecting any slowdown in demand. The
retail sector, on the other hand, is expected to remain strong with
Jakarta maintain the lead regionally.
The property markets are
also showing more transparency which leads to regional growth
encouraging investment. Singapore, Malaysia, Philippines, Indonesia,
Thailand and Vietnam are the most transparent markets regionally for
2012.
As such, the region’s property industry is in “a unique
position to influence and be involved in many key aspects of
development” including housing, infrastructure, industry and trade among
others, Fossick added.
“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.”
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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