Target Markets
By consolidating the marketing reports from our advisors and couple dozens of reports from property investment agencies and funds, we selected 12 countries which major from Asia as the starting up engine for our assets acquisition.
We did the scrutiny of their historical data on their countries economic index, net asset value growth, rental yields, government tax, laws of foreign investment and legitimation of shared economics services. We decided to divide the investment in these 12 countries in THREE phase whereas China, Hong Kong, Malaysia, Japan and Mongolia as the FIRST priority. While Philippine, Australia, Vietnam, United Kingdom and Thailand are as the closely watching list countries.
China — largest economic system in Asia with faster GDP growth in the last decade and 92.7% net asset value growth in 5 years, the rental yields has around 5% which is acceptable range of normal return.
Hong Kong — 56.11% growth in the past 5 years, residential demand is still far beyond the supply. It requires having innovative ideas to gain better monthly rental yields.
Japan — 2nd largest economic system in Asia with the net asset value growth around 34.51%. Together with the latest Minpaku law release, the rental yield can be dragged up from current 4.5%.
Malaysia — with the reasonable net asset value growth 48.59% and rental yield around 3.85%. Newly elected government shall release lot of encouraging economic policy for business investment which might include the release of Currency Exchange Control.
Mongolia — one of the blooming minerals mining in Asia, with the facts of foreign investment in mining industry, the residential demand for expats is surge with the rental yield around 16.5%.
Philippines — it’s residential property market continues to perform very well, due to robust economic growth. The average price of a luxury 3-bedroom condominium unit in Makati central business district (CBD) soared 10.46% during 2017 with around 67.26% growth in 5 years. Although the supply is forecasting higher in 2018 onwards, it can still maintenance around 5% to 6% rental yield.
Australia — experiencing net asset value falling and demand for property continues to moderate nationally because of the slow down foreign investment. However, most of the analytics reporting show it is in the decelerating stage after continuous growth 45.92% in past 5 years.
United Kingdom — Rebounding strongly from the uncertainty in the immediate aftermath of the EU referendum, the UK property investment market has seen a surprise surge in transaction volumes, particularly from overseas investors. Investment volumes are likely to remain robust at around £60bn for coming year. Also as one of the biggest investment inflow countries from foreigner, it’s rental yield can keep around 2.9%.
Thailand — housing market is weakening despite a stronger economy. Price are still increasing albeit at a much slower pace. With the relatively low property price and improvement of the infrastructure, the property prices are still relatively cheap as compared to many places. Especially in the Central Business District, the demand from the expats are still high and promoting the rental yield to 6.5% or higher.
Vietnam — as the yearning of the success replication from Mainland China, a couple of global real estates and investment firms rated them as “MUST INVEST” catalogue for next couple of years. Because of the effects of One Belt One Road and emergent of manufacturing industries, the rental yield can keep around 5.25% for the expats working in big cities like Ho Chi Minh City and Hanoi.
Taiwan — After two years of house price falls, Taiwan’s property market is gaining momentum. House prices are rising gradually. Demand is surging. Residential construction activity is also increasing again. As per the facts that on existing low rental yields and net asset value growth, most of the analysts predicts it is in the bottoming of the real estate market life cycle.
Singapore — After three years of falling prices, 2018 is looking like the year that the its property market’s long-awaited turnaround finally gains traction. Analysts reckon that a trough has been reached though they are careful to tamp down excessive optimism.
Source: Emerging Trends in Real Estate, Asia Pacific 2018, PwC, Urban Land Institute, Knight Frank Research, ValuePenguin
