In the Know: Savills 2023 Asia Pacific Real Estate Investment Country Guide
Savills annual research report once again compiles the crucial investment rules, regulations and legislation investors in the Asia Pacific region need to be current on.
In the 2024 edition of its Investment Country Guide, Savills collects key investment details in one invaluable resource. The information covered encompasses simple floor area measurements to current legislation that could impact investors. The Guide surveys 14 locations, including mature markets in Japan, Hong Kong and Singapore in addition to emerging Indonesia, Vietnam and Philippines. Regional engines China and India are also reviewed, as well as the United States and the United Kingdom. Information on these investment superpowers offers valuable comparisons, supporting more informed decisions. Savills Investment Country Guide is an essential reference tool for investors at every level.
From Tax Legislation to Lease Terms
Rules, regulations and legal obligations in each APAC market are as diverse as APAC itself. The Guide is designed to help investors understand the fundamental policies governing each market. Australian stamp duties vary from state to state, and have been abolished in South Australia on commercial transactions. In Vietnam, stamp duties are levied at a standard 0.5% of land value. Singapore and Hong Kong levy multiple stamp duties, on some buyers, purchasers or entities. Duties can run as high as 65%. The Guide includes complete breakdowns of office lease terms, key in making decisions about the still-preferred asset. The details include typical lease periods, rent reviews and termination allowances.
Other information collected in the Guide includes details of ownership models, income, corporate and property tax legislation, and transaction costs.
Understanding China and India
The world’s second largest economy and one of its fastest emerging are also home to robust real estate markets. Investment in China has consistently been a complex process for overseas investors. It also has complex tax structures, all detailed in the Investment Country Guide. Real estate law and the regulatory environment continue to change rapidly, as they have in the last 24 months. New policy pertains to developer equity, bond finance support, land registration and foreign exchange controls.
India has demonstrated remarkable resilience in the face of global headwinds. India’s GDP grew 7.2% in 2023. Foreign Direct Investment (FDI) reached US$71 billion in the 2023. The country’s strong macroeconomic indicators suggest solid growth in the coming years. With services accounting for 54% of its GDP and its fastest growing industry, offices remain on investor radar. There are several mechanisms for investment in India, and overseas investors can leverage FDI. New and amended laws investors should be aware of apply to residential tenancy, REITs and the Special Economic Zone Act.
The Ongoing Evolution of Emerging Markets
APAC’s emerging economies are demanding attention in their real estate sectors. As a result, Vietnam, Pakistan, Indonesia and Philippines have some of the region’s fastest-changing policies. Vietnam revised land and housing laws in the last 12 months. In Philippines, a new government is committed to cost controls, and so could impact growth. Pakistan continues to struggle with inflation and high interest rates. Indonesia is a young country powered by domestic consumption as well as investment. It also has some of the region’s most complicated real estate laws.
To stay up-to-date on the APAC real estate regulatory environment, read or download the complete 2024 Asia Pacific Real Estate Investment Country Guide at Savills Research:
