Tuesday, July 10, 2012

ASEAN homes are best property investments, says report

The ASEAN (Association of Southeast Asian Nations) region has witnessed a 15 percent year-to-date rebound in property prices, with Indonesia and Singapore taking the lead.

Indonesia’s strong performance was underpinned by its favourable growth prospects as well as supply and demand dynamics. It was followed by Singapore, which stood out in terms of valuation and liquidity.

Thailand, which came in third spot, operated within the most conducive policy regime while Malaysia saw richer property valuations.

According to UOB Kay Hian Research (UOBKayHian), ASEAN is now one the world’s fastest growing regions with an estimated growth of six percent per annum in the next three years.

“The move towards an Asean Economic Community by 2015 means a single market of 600 million consumers with freer movement of goods, services, capital and people. It will not only see more foreigners setting up businesses in the region but also deeper intra-regional trade and investments,” said the firm.

Moving ahead, the report encouraged the region to welcome more expatriates and intra-regional investors to boost the property market. The reduced entry barriers have also made it easier for developers to enhance their regional presence.

The report added that structural transformations created a high degree of sustainability to the current recovery, as interest rates were low and currencies fairly stable.

Singapore is expected to continue witnessing the remaking of post-Integrated Resorts, with the aim of overtaking Switzerland as the world’s top wealth management centre over the next two years. 

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