South East Asia has been growing economically for many decades now, and current land prices very much reflect this, with city condominium prices continuing to rise. Prime development land is becoming more and more sought after, in all the major cities across the peninsula, as commerce grows within a stable economy.
Malaysia, Singapore, and Thailand are all enjoying a boom in foreign investment, and with many multi-nationals having their headquarters in the region, the demand for real estate is growing. As an investor, if you were interested in buying land, JLL The Investor has a wealth of information on investment opportunities. As Europe and America endure a difficult time economically, the Asian economies have largely held their own, and are now experiencing sustainable growth.
Highest Rates of Growth
For commercial land, the following cities have enjoyed a faster rate of price increase over the past two years,
- Kuala Lumpur
- Phnom Penh
Lower Growth Rates
Hong Kong, Singapore, and Tokyo experienced a slower rate of increase, although it is still growing, albeit slowly.
Bangkok, Singapore, and Kuala Lumpur are all international hubs, and urban accommodation is always in great demand. Prime real estate in these cities is very valuable, with new condominium projects expanding the city limits. Bangkok experienced a slowdown in condominium prices, but this is considered to be temporary, due to the glut of projects after the financial crash in the 1990s, and with the formation of ASEAN, the ten member countries should show positive economic development.
First World Expansion
The major economies around the world are now moving into other regions, with the Asia Pacific being the favoured area for multi-national developments. The automobile industry is a classic example, as third world countries require cars, the major players set up manufacturing plants nearby, as costs are much cheaper than in Europe or America. Thailand has seen a massive increase in automobile sales for several decades, which has resulted in most car manufacturers establishing plants in the country. They can then export the cars to nearby the growing economies, such as Vietnam, Cambodia, and the emerging Laos.
In some South East Asian countries, the farming community have sold out to local manufacturers of tinned food or fruit, and factories are soon established. This can be considered part of any third world country’s development, and brings many benefits to the local community. Land prices in North East Thailand, a traditional farming region, have steadily rose in the past ten years, and more and more commercial developments are appearing, and with many factories established, the local people are moving away from the traditional farming, into factory positions. The demand for accessible land in all of the emerging countries in the region is rising, and providing the government is stable and the economy on the up, it makes for a good investment opportunity.
Land prices in South East Asia look like they will continue to rise, and with urban areas expanding, the need to turn rural land into commercial developments will add to the increase in prices.