Real estate trends have been changing for a long time, and top investors’ focus has shifted to Asia-Pacific. Not only does Asia offer a wide range of opportunities for long-term investors, for several years now it has become hotspots for property investment. There are plenty of spots that are ripe for investment, with a lot of potential in the incoming future. We take a look at some of the hot cities below:
1. Ho Chi Minh City
Ho Chi Minh City, also popularly known as Saigon, is the most populous city in Vietnam, with more than 10 million people. It is home to the Ho Chi Minh City Stock Exchange, the largest stock exchange by total market capitalization in Vietnam, with many national and international banks and companies’ headquarters. Although the city takes up just 0.6% of the country’s land area, it contains 8.34% of the Vietnam population, 20.2% of its GDP, 27.9% of industrial output, and 34.9% of the FDI projects in the country.
Prior to 2015, Vietnam was not open to foreign property investment. However, that has all changed, as now you can buy as much property as you want with only a tourist visa as long as the number of units in a building is 70% owned by Vietnamese citizens. Ho Chi Minh City’s economy consists of mining, seafood processing, agriculture, construction, tourism, finance, industry, and trade.
For the last few years, the city has seen a massive boom in property investment. Not only is the city ripe with potential due to its youthful population, but it also is expected to be a focal hi-tech city in not only the country of Vietnam, as well as South-East Asia region as a whole.
Jakarta is the capital region of Indonesia, situated on the northwest coast of Java, the most populous island globally. Indonesia as a whole has been attracting many tourists and investors throughout the year, with Jakarta’s urbanized city life and entertainment outlets appealing to many foreigners. The city’s economy is primarily based on manufacturing and service sectors like finance and trading.
Jakarta experienced a hike in real estate demands since 2017, where the total investment value increased by about 84.7% from 2016. The country also has a stable economic growth with average GDP growth of 5% every year. Tourism is also an important part of the city’s GDP, with visitors mostly from Australia, Japan, and India.
Besides great opportunities, the Indonesian real estate market rarely makes big moves, and thus, Jakarta remains an emerging spot for property investment. The country is projected to show continued growth in its economy, with its economy expected to grow 6% in 2021. Experienced real estate investors are completely aware that there will be a boom in the Indonesian real estate market in the coming years, and so the best time to invest is now.
Manila is the capital city of the Philippines. and the most densely populated city proper in the world as of 2019. Manila is one of the most highly urbanized cities globally, and the Philippines ranked as one of the top cities to launch a start-up.
Due to its influence from Spanish colony, the country possesses many historical places dating back from the 16th century, adding to its unique architecture and colorful nature. Manila’s economy is mostly made up of urban services like real estate, commerce, and baking.
When it comes to property investment, Manila is one of the best countries in Asia-Pacific, with a vacancy level of 4.5% in 2019. According to a report by Knight Frank in 2020, Manila would record growth of 19% growth in office rents, surpassing top competitors like Bangkok, Brisbane, and Hong Kong.
According to Colliers International, the demand for real estate in Manila is going to increase by about 6% in the upcoming three years with good economic growth. Traffic congestion is also likely to decrease in the near future because of many government projects, including building the country’s first underground railway.
4. Siem Reap
Siem Reap is Cambodia’s capital city with more than 1 million people populace. The city has always been a major tourist hub for Cambodia, primarily due to Angkor Watt being close by. This city is also home to many other UNESCO World Heritage sites.
Chinese investors have dominated Siem Reap’s investment market in the past few years due to its high potential. In 2019, the province saw a very good year, as it saw more hotels and businesses developing throughout.
Siem Reap has experienced more than 10% annual GDP growth in 2019, with the tourism, ecotourism, food and beverage industry have contributed the most to these areas. Many real estate experts have predicted that Siem Reap will experience a boom in the coming years, but Chinese investors will most likely still dominate the city.