The large economic and population base of SEA is already translating to significant opportunities through increased inter- and intra-regional trade, regional and domestic tourism, expanded financial and insurance services, and higher demand for logistics services. In the longer term, this regional economic growth will continue to support the development and expansion of the region’s real estate market. In The Emerging Powerhouse of South East Asia: What Does It Mean for Real Estate Investors? We explore the underlying domestic enabling trends that are supporting the property markets in SEA. Download the report here: http://bit.ly/1Ixh60r

1. The Emerging Powerhouse of South
East Asia: What Does It Mean for
Real Estate Investors?

2. Office – Manila: Offshoring and Outsourcing destination
Manila, attracts the young literate English
speaking adult population that has supported the
continual growth of the O&O industry. Following
the AFC in 1997, global companies started to
“outsource” business processes that
could be done outside the company with more
efficiency and at less cost. Major property
developers are taking advantage of the demand
for a large volume of office space from the
O&O sector. From 1.1 million sqm in 2005,
Grade A office stock in Makati CBD and
Bonifacio Global City (BGC) more than doubled
to 2.4 million sqm by end-2014.

3. Logistics – Jakarta: Urbanisation drives demand
The demand for consumer goods is rising rapidly
in Indonesia in tandem with solid
economic growth, rising urbanisation and
increasing wealth levels. Currently just
over half of Indonesia’s population of 250 million
live in cities, and this is set to
rise to 57% by 2020. Compellingly, the middle
class is projected to almost double
between now and 2020, to 80 million people.

4. Retail – Bangkok: Consumer confidence lifts
A more stable political environment in Thailand,
following the military coup in May 2014, has
given landlords and occupiers greater motivation
to renew their contracts as consumer confidence
has also recovered. Beyond the large supply
completions in the next two years, the continual
urbanisation, growth in tourist arrivals, and
strong domestic buying power will support the
retail market. While the limited retail assets
available for sale makes direct investment
challenging, investors have participated in the
growth of the retail market through joint ventures
with local partners or direct participation in the
equity market.

5. Residential – Jakarta: Housing demand on the rise
A large population base, coupled with stable
economic growth over the past few
years, has supported the housing market,
especially in Jakarta. Indonesia, with
a population of over 250 million today, is
expected to add 3 million more people
per year from 2015 to 2020. Supported by
sustained economic growth, the middle
income population has grown to 45 million in
2015, and is expected to swell by
another 7 million a year, reaching 80 million by
2020.

6. Hospitality – Myanmar: Opportunities abound
Myanmar is one of the last frontier markets in
SEA, with immense potential given the
government commitment to political and
economic reforms in recent years. With almost
2,000 km of coastline and an immense collection
of archaeological sites, the tourism opportunity
ahead is strong. According to statistics released
by the Myanmar Ministry of Hotels and Tourism,
visitor arrivals grew by 50% from 2 million in
2013 to 3 million in 2014, the bulk of which were
from Thailand, China and Japan.

7. Singapore: Gateway to ASEAN
Singapore’s business friendly environment,
political and financial stability, and its reliable and
clean legal structure, have earned the
government the top grade (AAA) rating by the
major credit rating agencies. As a global financial
hub, Singapore is a natural commercial gateway
to ASEAN. Occupier demand has been driven by
a broad spectrum of occupiers, ranging from
regional financial and wealth management firms
to IT. Social media companies and other modern
services firms have been expanding or
establishing their SEA headquarters in
Singapore since 2009.

8. Thank You