Southeast Asia, especially Jakarta, Kuala Lumpur and Singapore, will start to boom with more investments from Japan and Hong Kong, Gavin Tee, founder of Swhengtee International Real Estate Investors Club, told the Malaysian Chronicle.
“In the coming years, we will see sweeping changes in the real estate world. Currently, emerging markets such as Myanmar, Bangladesh, Indonesia and Vietnam are high on the radar of many global funds but now even developed nations such as Germany, China, Australia and Singapore are on the market for such funds,” Tee said.
He added that this was because developed and emerging countries are practising an open door policy to compete for foreign funds to invest in their property developments amid an uncertain global economic and political environment.
Tee said the global market would see more tightening of financing and possible tax increases.
“This will benefit the bigger players who have more leverage in a challenging environment. One of the consequences would be more emphasis by investors on how to handle taxes payable,” Tee said.
Tee also said the secondary market in most parts of the world may face a challenging time this year due to the stricter financing measures put in place in most countries.
“Singapore recently made it harder while more cooling measures are expected in China. In some jurisdictions, loan margins for second house onwards have dropped to below 50 per cent. In Malaysia, it is a lot harder now to get loans,” Tee said. “Despite that, I am bullish about prospects for investors. This decade will be the ‘Golden 10 Years’ for Malaysian property investors and there will be unprecedented growth in the sector, domestically.”
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