Do you want to know the best real estate countries in Asia? If your answer is yes then this blog provides you all information regarding this.
Southeast Asia has become a magnet for investors and businesses, thanks to its rapidly increasing economy and rising middle class. There is no doubt that the region has a bright future ahead of it, particularly in terms of real estate investment.
Strategic assets, market efficiency, and GDP growth are just a few of the factors that define high investment potential in Southeast Asia. We look at some of the best countries to consider below, in addition to the greatest cities to invest in real estate.
- Vietnam
For numerous years, many people have been watching Vietnam, particularly Ho Chi Minh City, the country’s capital. The country is seeing significant expansion in terms of infrastructure, banking, and real estate investment, thanks to a rapidly rising economy that averages 7% and a digitally native youthful population with a median age of 25-30 years old.
Not only is Vietnam known for having some of the highest yields in the world, ranging from 6 to 8%, but some developers are even offering as much as 12%. In comparison, Singapore, the most competitive economy in the world, has yields of 3% or less.
In addition, the country is less expensive than surrounding places such as aforementioned Singapore or even Bangkok. Luxury real estate can be purchased for as little as $USD 3000 per square meter, compared to double or triple that in locations like Bangkok.
- Indonesia
Indonesia is known not just for its huge economic potential, with forecasts that it will be among the top five highest GDP countries in a decade or two, but it has also shown great potential for property investors. Despite global instability and several natural disasters, the country’s real GDP growth remained constant, with private and government consumption increasing.
With the rise of urbanization and industrialization, Indonesia’s economy is expanding at a breakneck speed, with yearly GDP growth averaging more than 5%. The home price index increased by 1.77 percent in 2019, continuing a trend that began in 2014. Furthermore, nominal property price increases were seen in 17 of the country’s 18 largest cities in 2019.
With the country releasing an $8 billion emergency stimulus package to defend the economy from the coronavirus, there is a good chance that the country will demonstrate a lot of opportunity for speedy recovery in the future years. A subsidized housing program worth USD$104 million is included in this package.
As an extra bonus, the rental yields in Jakarta are moderate to appealing. Not only are higher-end apartments only USD$2,500 per square meter, but they also have yields ranging from 5.2 percent to 7.7%.
- Malaysia
While many people believe Malaysia’s house price boom has peaked, the country remains a magnet for real estate investment. Not only is the country anticipated to grow by 6.7 percent in 2021, but it is also expected to rise by 6.7 percent in 2022.
Malaysia’s property market transaction volume and value declined 27.9% and 31.5 percent, respectively, in 2020, according to the National Property Information Centre (Epic). While this is a decrease from the previous year, it is not surprising for most countries throughout the world, as practically all property sectors have been severely impacted by the coronavirus.
Despite the slowing of the general market, condo prices in Malaysia are still relatively modest compared to other nearby cities, at around USD$2,000 per square meter. Furthermore, the country is pretty steady, with residential property prices growing and dropping by a few percentage points — a sign that it is never rocked by sudden crises like a pandemic, with no boom or crash. In other words, prices have been steady for the previous 15 years after correcting for inflation.
- Thailand
Despite the fact that some investors believe Thailand’s housing heyday is over, the country remains one of the hottest real estate investment destinations in the world, particularly for Chinese investors. Not only is it the world’s most popular tourist destination, especially for Chinese buyers, but it’s also ripe for real estate investment.
Thailand is one of Asia’s top real estate investment destinations, thanks to its welcoming attitude toward foreign investors and rising real estate investment demand. The country is also well-known around the world for its diverse export products, and the Thai government has implemented a number of programs to stimulate the real estate industry.
The freedom to own freehold property and reduced taxes compared to other nearby regions are two factors that make the country attractive to overseas investors. Furthermore, the country is geographically well-positioned, with Singapore, Malaysia, and Vietnam all nearby.
- Singapore
Singapore is one of the most developed free-market economies in the modern world, despite its relatively tiny territory when compared to its other Southeast Asian peers. Since 2010, Singapore has surpassed the United States as the world’s most competitive economy. It was also ranked 16th in an international assessment for entrepreneurship, quality of life, and business.
Despite the fact that Singapore hit rock bottom in 2017, there has been a lot of returning confidence in the country in terms of real estate investment, since it was one of the few markets to have an increase in transactions in the first quarter of 2020. The country is more controlled than Hong Kong and outperforms many of its Southeast Asian competitors in terms of living standards. The country not only has an extremely low crime rate, but also boasts a sizable ex-pat community.
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