Foreign direct investment pours into SE Asia as regional market performance outpaces mature western markets with sustainable growth of up to 8%Property investors tapping into South East Asia’s property markets are increasing their attention on countries such as Indonesia and Vietnam, say the organisers of Cityscape Asia, a major property investment and development exhibition and conference to be held in Singapore next month.
In 2007 Cityscape Asia exceeded all expectations with participants from 53 countries and 125 exhibitors from 21 countries. In 2008 the Cityscape Asia organisers say they are set to welcome more than 8,000 real estate professionals and host over 200 exhibitors.
“With the shifting of capital away from developed markets facing slumps, the unmet property demands in virtually all sectors in countries such as Indonesia and Vietnam offer investors growth opportunities not available in other markets,” said Graham Wood, Exhibition Director for Cityscape Asia 2008 which takes place at Suntec, Singapore, 15 – 17 April 2008.
Among the region’s many opportunities is Indonesia’s Bintan Island, less than an hour away from Singapore, which welcomed 323,600 visitors last year, with one million visitor arrivals targeted by 2012.
Cityscape Asia exhibitor PT Bintan Resort Cakrawala, is the master developer of Lagoi Bay, Bintan’s latest integrated resort development offering 1,300 hectares of resort, residential and commercial investment opportunities.
“Consistent with the recent growth in visitor numbers, there has been a high level of interest in Lagoi Bay from potential investors from the Middle East and Singapore with almost 25% of saleable land available already reserved,” said Mr Wood.
On the Indonesian island of Bali, PT Griya Development, also exhibiting at Cityscape Asia, has become the largest land acquisition company with its exclusive developments in Seminyak, Jimbaran, Nusa Dua and Tanjung Benoa.
“Developers and investors are enjoying these opportunities in what is South East Asia’s largest economy,” Wood added.
“Fundamentally, Indonesia expects to shrug off the effects of a global slowdown with the country’s central bank forecasting growth of 6.2% this year after a 6.3% expansion in 2007.”
CB Richard Ellis, the world’s largest commercial real estate services firm, also recently reported strong demand in all sectors of the Vietnam real estate market in 2007.
Vietnam currently has the fastest growing economy in South East Asia with GDP of over 8% in the last three consecutive years. In 2007, total investment capital into real estate projects was estimated at $5 billion, which was mainly sourced from foreign direct investment.
“In 2008, this will continue but the landscape is changing,” the company added. “Important projects are not just taking place in the two main cities of Hanoi and Ho Chi Minh City but they also extend to other growing cities like Hai Phong, Da Nang, Nha Trang, and Can Tho. Demand is great but buyers are becoming more discriminating in what is being offered.”
Presentations on succeeding in Vietnam and other emerging markets including approaches to partnering and risk management will be part of the Cityscape Asia International Property Investment and Development Conference which runs in parallel with the exhibition.
The three day conference will also feature some of the world’s leading real estate investment experts examining the opportunities in mature markets in Asia including real estate investment trusts, derivatives and an Asian investment property databank. Other speakers will focus on specialist market categories such as clusters and hubs for financial institutions, investment opportunities in airport cities and the impact of Integrated Resorts on the Singapore market.
Cityscape Asia is an extension of the hugely successful Cityscape Dubai, organised by IIR Middle East, which also include India, China and South America. The Dubai event at the latter end of last year smashed all previous records with 52,000 participants from more than 120 countries.
For more information about Cityscape Asia 2008 and all related events, please visit: www.cityscapeasia.com or email theresa.Gan@iirx.com.sg or graham.wood@iirme.com
