REAL estate investment remains one of the most reliable and lucrative investment options going. If you track down a good deal, real estate can be a low-risk investment that can pay off in the long term.
Few regions in the world show as much promise as Southeast Asia for viable investment opportunities. Business is booming in the 10 country Association of Southeast Asian Nations (Asean) and the region is home to some of the world’s fastest-growing economies.
Rather than focus all their attention in highly developed countries like Singapore, global investors are now turning their attention to some of their less developed neighbours that show a wealth of potential at still rock bottom prices.
Despite the odd blip, real estate markets across the region are going up. Deciding which country is right for you can be tricky.
To give you a sense of what’s on offer, we’ve compiled a list of hot cities to consider when looking for your next investment.
Cambodia is the fastest growing economy in the region with a consistent growth over seven percent. And its real estate market is more than keeping pace.
Chinese investment has created a massive construction boom in pockets around the country. In the capital city of Phnom Penh, there is a long list of residential, commercial, and mixed-use developments recently completed, underway, in the pipeline, or in the drawing board.
Coastal areas such as Sihanoukville are also growing exponentially with condo developments creeping along the shoreline.
While this influx had some whispering about a possible market crash, experts are confident the Kingdom’s real estate sector is headed in the right direction. In only a few years, the market is expected to offer a breadth of options across all grades and will be able to compete in terms of quality with other centres across the Asean region.
Property experts from CBRE and Huttons CPL told Real Estate Cambodia that demand will not slow anytime soon.
The Philippines is also in the top 10 fastest growing economies in the world, and is awash with real estate opportunities. While the capital Manila is still a good prospect, especially if you have a generous budget, there are umpteen cities sprouting up at lightning speed.
Even the cities around metro Manila offer a better return on investment, with Paranaque city giving the highest rental yield of them all, according to a study by Zipmatch.
Their data suggests that cities south of Metro Manila give a rate not lower than 7.3 percent. Cities such as Parañaque, Manila, Las Piñas, and Pasay overshadow the more popular districts due to the development of new tourist attractions and other infrastructures.
Down the south of the country, as one of the fastest growing cities in Southeast Asia, Davao city is also worth a look. The city is not as saturated as Manila and the government is investing heavily in making Davao an attractive destination for both local and international investors.
Indonesia is a huge country with very varied levels of development across its over 17,000 islands. But its capital Jakarta is a good place to start.
The highly urbanised city of 10 million is home to one of the hottest real estate markets in Asia, with high-end apartments fetching a rental yield of between 7.4 to 8.5 percent.
The only downside is it can be tricky for foreigners to purchase property and the processing fees can be pricey.