<p><img alt="Daan Roosegaarde’s 'smog-free' tower is, admits the designer, a small-scale solution to Beijing's pollution crisis. But such innovations can act as prototypes of bigger things to come" src="/documents/10204/0/03SmogFreeTowerBeijing_photocreditDerrickWang-compressor.jpg/558631e9-c3ed-403b-8a28-1a021ad8b29d?t=1553224883607" /></p> <p>Beijing smog is the poster child for urbanisation gone wrong: an acrid yellow fog invading its streets, shutting down schools, robbing days of light. But it doesn’t just <em>look</em> bad: China’s polluted air is so toxic, it kills 4,400 people a day, according to Berkeley Earth, a California-based climate science analyst. And though there have been a handful of inventive responses to the problem — see Chinese fashion designer Masha Ma’s Swarovski-studded pollution masks, as modelled at Paris Fashion Week — suffering in style isn’t quite the proactive solution an economic powerhouse like Beijing so desperately needs.</p> <p>Enter Daan Roosegaarde’s “Smog-Free Project”. Along with his design lab, Studio Roosegaarde, the self-styled visionary is rolling out a series of “urban innovations” in the Chinese capital to tackle its poisonous atmosphere on various, localised scales.In the photograph: the “smog-free tower”. Intended for placement in the city’s parks, the tower sucks in pollution particles by sending out positive ions; these particles are then grounded to a negatively charged surface, and clean air is expelled back outside through vents. Critics have been quick, though, to laser in on its limitations: that it runs on electricity; that the air it expels is only 75 percent cleaner; and that the tower can only create a bubble of smog-free air around it. </p> <p>“Of course one small tower won’t solve the problem of a whole city,” Roosegaarde says now. “But showing that you can make a place 75 percent cleaner — it’s like a rock in a river that creates ripples. If it can be done locally, then what can be done to make a whole city smog-free?”</p> <p><strong><a href="http://www.property-report.com/detail/-/blogs/this-chinese-city-is-relaxing-tax-rules-on-home-sal-5" target="_blank">More: This Chinese city is relaxing tax rules on home sales</a></strong></p> <p>His studio is also proposing a “smog-free bicycle” that sucks in polluted air as it’s pedalled, cleans it, and then blows out better air for the cyclist to breathe as they continue to ride. Roosegaarde is working with Ofo, the Beijing-based, dock-free bicycle sharing company, to distribute these smog-free wheels all over town. “Five years ago, when I would cycle, my Chinese friends would say, ‘Are you poor? Can you not pay for a taxi?’,” the Dutchman laughs. “Now, within the last year, these Ofo bikes are everywhere. A change in values can happen fast — and that’s incredibly hopeful. Look at China taking the lead in sustainable investment now. Once, that would have been unimaginable,” he points out.</p> <div class="pull-quotes-container">"Of course one small tower won’t solve the problem of a whole city. But showing that you can make a place 75 percent cleaner — it’s like a rock in a river that creates ripples. If it can be done locally, then what can be done to make a whole city smog-free”</div> <p>Certainly, the Chinese government is starting to take the predicament seriously. The country’s noxious air is broadly the fault of large-scale coal burning in industrial zones; ergo, what Roosegaarde says is true: China is now rolling out the world’s biggest investment in wind and solar. It’s also introducing new car emissions standards and closing coal-fired power plants.</p> <p>But when it comes to so vast a problem, every little helps. Which is why Roosegaarde is still tinkering. The latest iteration of his smog-free tower has evolved to run on solar power, and he insists the tech is scalable, to the size of a building. Perhaps someday, it will be intended for more than a park. “But I’m not saying I have all the answers,” Roosegaarde says. “These are small-scale solutions to step by step improve the world today. They’re prototypes of the city of tomorrow.”</p> <p><em>This article originally appeared as one in a four-part series in Issue No. 149 of <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">PropertyGuru Property Report Magazine</a></em></p>
<p><img alt="Rising sea levels and torrential monsoon showers mean that low-lying cities such as Jakarta and Bangkok are sinking fast and could be submerged within the next 20 years" src="/documents/10204/0/shutterstock_727803181-compressor.jpg/5b899ac3-ae7e-4202-837f-6c82dee9af31?t=1553137504555" />There’s no lack of imagination in the design for Wetropolis, a new vision of Bangkok proposed by Thai architect Ponlawat Buasri. Thailand’s capital was built on highly compressible marshland; today, added pressures of unchecked urban development, excessive groundwater pumping, and concrete that cannot absorb flood water add up to a dire prognosis.</p> <p>Considering rising sea levels and swelling monsoons, the city could be completely submerged in less than 15 years, Thailand’s National Reform Council warns. Buasri’s sci-fi-esque solution urges elevating the city over restored mangrove forests, which would absorb carbon dioxide, naturally filter water, and add acres of green space.</p> <p>Locating the budget for such an enterprise, however, is pure fantasy, according to Dr. Supachai Tantikom. A former adviser to Bangkok’s governor and now working with 100 Resilient Cities — a Rockefeller Foundation-funded project that helps at-risk cities form resilience strategies — he says Bangkok would be better off taking a more immediately realisable approach. “We’re sinking at an average of one to two centimetres per year,” he says. “What we need is better land and water management, using existing infrastructure and resources.”</p> <p><strong><a href="http://www.property-report.com/detail/-/blogs/why-branded-homes-will-remain-a-hit-for-thailand-in-20-9" target="_blank">More: Why branded homes will remain hits for Thailand in 2019</a></strong></p> <p>The key, Dr. Supachai says, is to work <em>with</em> water instead of against it. He envisions diverting excess water to surrounding rice farms, for example, where it could be stored; the government would compensate farmers for their trouble. The idea recalls the Netherlands’ successful “Room for the River” project, which protects swathes of land at the expense of others; in some cases, allowing farmers’ fields to flood.</p> <p>The Netherlands is a leading example of welcoming, rather than resisting, water. With one-third of the country below sea level, its cities are increasingly being landscaped to take water in, rather than keep it out. Take Rotterdam’s Benthemplein water plaza: an inviting recreational space when dry, with room for basketball, skateboarding, and an amphitheatre. When it rains, however, the plaza can capture and hold up to 1.7 million litres. This is later released into an underground filtration device, helping maintain groundwater balance during drier weather. </p> <div class="pull-quotes-container">Bangkok is sinking at an average of one to two centimetres per year. What we need is better land and water management, using existing infrastructure and resources</div> <p>Designing cities around these principles is also catching on in China, which in 2015 launched its “Sponge City” initiative. It has since ramped up initial testing in 16 cities to a total of 30, including Shanghai.</p> <p>Elsewhere, more flamboyant solutions still gain traction. Jakarta might be among the world’s fastest-growing economies, but it is also sinking faster than any other large city on Earth: an estimated 25 centimetres per year. The reasons mirror those of Bangkok’s — particularly illegal well-digging, given just one-third of its 10 million-strong population has access to piped water.</p> <p>Officials are now banking on a USD40 billion project to construct a colossal dike — stretching 25 miles across Jakarta Bay — to save them. This giant sea wall would sire a lagoon, around which an all-new mega-city, gleaming with luxury skyscrapers and shopping malls, is to be built on reclaimed land. Recalling the brass of Dubai’s palm- and world-shaped man-made islands, this new metropolis has been anointed the “Great Garuda”, and is designed in the shape of the mythical bird.</p> <p>Not everyone is thrilled at the idea. Criticisms range from potential environmental damage (scientists fear the lagoon’s trapped freshwater would turn septic), to human rights violations (traditional fishing communities are being evicted to make way for the development, while their livelihood — the bay’s fishing grounds — is destroyed by the construction).</p> <p>Perhaps Jakarta’s problems would be better resolved by Dr. Supachai’s recommended approach for Bangkok. “The problem isn’t just the city’s; we need to study the whole catchment area,” he says. “You have to look at the bigger picture.”</p> <p><em>This article originally appeared as one in a four-part series in Issue No. 149 of <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">PropertyGuru Property Report Magazine</a></em></p>
<img alt="" src="/documents/10204/0/shutterstock_793949083-compressor.jpg/36b7c35b-ba57-4cd3-92d3-7cebab0b155a?t=1552989201064" style="width: 1000px; height: 667px;" /> <p>Fintech may not be a word we use all that often, but it’s been part of our daily existence for a while now. Internet-based systems like PayPal enable online financial interactions; e-banking procedures are commonplace for anyone with a broadband connection; and contactless (smart) payment cards run the gamut of daily activity, from public transportation to the supermarket checkout.</p> <p>Global funding of fintech ventures peaked at USD46.7 billion in 2015 as e-wallets and other financial platforms became widely available. A 2017 study by PwC and Startupbootcamp, an accelerator network, further estimates payments via mobile and contactless systems around the world to reach USD95 billion by the end of 2018, and will collectively lower the cost of basic financial services by up to 90 percent. Over the last three years, the rise of cryptocurrency has likewise elicited a feverish anticipation not seen in the tech community since the World Wide Web, giving fintech a whole new impetus.</p> <p>Even as fintech disrupts areas once monopolised by financial institutions, banks themselves are tapping fintech specialists to take on the modern marketplace. “There is a need to embrace technology,” says Umakanth Rama Pai, chief risk officer at Standard Chartered Bank in Mumbai, epitomising the refrain of professionals who see immense advantages in adopting such innovations in their operations. “There is something more fundamental: it drives efficiency and helps cut costs and do things in a much more focused manner. There’s also the client experience part of the story—the more convenient you make it, the more clients you will acquire.”</p> <p>Standard Chartered runs its own fintech laboratory, the eXellerator in Singapore, whose experts work on such areas as artificial intelligence, machine learning, analytics, data-management platforms, and regulatory technology. However, the bank is also collaborating with technology firms like Apple, Google and Samsung to facilitate contactless, paperless payment systems, as well as fintech partners outside the company. “Niche players,” Pai relates. “They have studied a specific situation or particular innovation in detail to create a USP or identity for themselves. These fintech partners are quite flexible in adapting to the bank’s specific requirements, so it makes sense for us to partner with them.”</p> <p><a href="http://www.property-report.com/detail/-/blogs/meet-the-diverse-group-of-disruptors-taking-things-offl-13" target="_blank"><strong>More: Meet the diverse group of disruptors taking things offline</strong></a></p> <p>Smaller companies and start-ups are increasingly deploying fintech, as the efficiency provided by disruptors make it easier to not only crowdfund their business but also set up smooth-running payment systems without cumbersome hardware.</p> <div class="pull-quotes-container">There is a need to embrace financial technology. It drives efficiency and helps cut costs and do things in a much more focused manner. There’s also the client experience part of the story—the more convenient you make it, the more clients you will acquire</div> <p>The agility of such fintech start-ups has a profound effect on real-estate companies old and new, and while it can be argued that they have not yet reached a critical mass, their collective dent on the industry is undeniable. A report from the Federal Reserve Bank of New York and New York University reveals that in 2016 fintech lenders made up eight percent of the loans market and originated USD161 billion in mortgages. Both lending and borrowing are faster and cheaper—lenders respond more quickly to market fluctuations; and 25 percent of loans end up defaulting, fewer than the industry average. In addition, consumers have easy access to efficient systems for finding properties and closing deals.</p> <p>In Asia, the proliferation of new technologies and microfinance institutions (MFIs) is gathering steam, spurred by the rapidly developing economies of China and India. Between 2013 and 2017, APAC companies raised over half of start-up investment worldwide—USD4.8 billion of the global figure of USD7.8 billion, according to a report by real-estate management company JLL—and it’s a trend set to continue as fast-increasing populations and higher disposable income lead to an inexorable rise in demand.</p> <p>Statistics from Southeast Asia speak to fundamental differences in consumer habits compared to the West. The region has a remarkable 133 percent mobile connectivity rate—some users own more than one SIM card or mobile phone—while only 27 percent of Southeast Asians have a current or savings account.</p> <p><img alt="Southeast Asia has a remarkable 133 percent mobile connectivity rate, while only 27 percent of people in the region have a current or savings account" src="/documents/10204/0/shutterstock_299942432-compressor.jpg/c287c569-81dc-4c7b-9e9f-fee91350f75b?t=1552989509757" /></p> <p>Cambodia has the highest mobile connectivity, yet only 13 percent of Cambodians are “banked”, according to a 2017 study by the Asian Development Bank. The blossoming of fintech, accessible through mobile apps, offers significant opportunities to those unreached by conventional banking apparatus, including far-flung rural communities. “The rapid adoption of new technologies—notably in payments systems—has supported improved financial inclusion,” says the kingdom’s finance minister Aun Pornmoniroth. “While MFIs’ increasing presence and significance have greatly contributed to improving access to credit, innovations in fintech have also opened up new possibilities, including low-cost access to credit and savings vehicles.”</p> <p>In the Philippines, a country with 10 million overseas Filipino workers (OFW), the need for failsafe remittance services is paramount. The World Bank estimates that OFWs send USD33 billion to the archipelago annually, and it wasn’t until recently that they were able to sidestep the high commission fees of money-transfer giants like Western Union. Now, e-wallets such as Coins.ph are helping cut the cost, with potential for even lower remittance fees as blockchain-based products gain traction.</p> <p>While countries with relatively low banked population like Cambodia and the Philippines are leading the charge with products, Singapore has the most fintech start-ups: almost 500 companies in the Lion City attracted USD141 million in investment in 2017. The Singapore Fintech Festival, the world’s largest such convention, in 2017 attracted more than 30,000 attendees from 109 countries and more than 5,000 companies; in November’s event has reportedly been “upsized” further.</p> <p>Though it provides a solid strategic base for the fintech community, Singaporeans’ widespread reliance on traditional banking and cash payment ironically makes the nation the least flexible for the introduction of cutting-edge payment options. “Singapore has a very high banking penetration,” says Matthew Tippetts, CEO of Cambodian fintech start-up Clik. “It’s a cultural habit, so I doubt they will go completely cashless anytime soon.”</p> <p><img alt="Internet-based systems such as PayPal enable simple online financial transactions at a click of a button " src="/documents/10204/0/shutterstock_1100199410-compressor.jpg/2600bc15-2b64-41ab-b105-477fcb0e646d?t=1552989839458" /></p> <p>One of the most radical developments in real-estate fintech is investment crowdfunding, a concept that originated in America, and in Singapore is being spearheaded by CEO Julian Kwan and COO Alice Chen at InvestaCrowd. Kwan, a Sydneysider, developed ground-breaking real-estate projects in China before moving to Singapore for its strong regulatory framework.</p> <p>The company enables greater access to investors to make a minimum eight percent profit on developments in mature markets with relatively low outlay, thus securing public-market liquidity with private-market returns. This contrasts with costly REITs, where shareholders invest in multiple properties. “The worst returns in private-equity real estate are double the best in REITs,” says Kwan.</p> <p>The results are proven—InvestaCrowd has secured 25 deals and raised nearly USD50 million—but the key difference is the technology being used. With the exception of the contract, the investment is made online, and eventually all payment will be made via blockchain, with RealFuel tokens representing true ownership of an asset. The great advantage of tokens in a licensed framework is that they are “transparent, commutable, reliable and visible,” says Kwan. “The beauty of blockchain is that you’ve got a distributed ledger that’s recording who owns what.” </p> <p>“For us the future of shareholding will be digital,” continues the CEO. “The next phase of business is that we’re building a real-estate security token exchange [ICTX].” The latter is fundamental in building the infrastructure around digital real-estate investment. “If you look at the 300 cryptocurrency exchanges in the world, I think one of them is licensed to deal in assets and security tokens. The rest are null and void,” Kwan says.</p> <p>Clearly an evangelist for the potential of digitising investment, Kwan believes that as it develops, the real barriers become psychological rather than financial. “When you do something new, people think these deals aren’t real, because they sound too good to be true. I think in five years, trading on private-equity deals will be at least equal to, if not greater than the public market because of the tokenisation of real estate, products and platforms. It’s a matter of how much appetite the buyer has.” </p> <p><em>This article originally appeared in Issue No. 150 of <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">PropertyGuru Property Report Magazine</a></em></p>
<p><img alt="Phnom Penh riverside at sunrise. Khoroshunova Olga/Shutterstock" src="/documents/10204/0/shutterstock_1277484061-compressor.jpg/65a0147e-710c-48d5-8077-9125b8ff2618?t=1552626773613" style="width: 1016px; height: 667px;" />Last year was the one many hoped would see the political tide turn in Cambodia. But as Hun Sen chipped away at Cambodia’s thin veneer of democracy in the months leading up to last year’s election, it was clear the status quo would remain unchallenged.</p> <p>Hun Sen crushed the outspoken independent press, and through the courts dissolved the main opposition party in the days leading to the election. He had perfected his rhetoric of threats and intimidation aimed at voters, firing insult after insult at the U.S. and others who dared criticise him. </p> <p>With Cambodia sliding into outright autocracy — Hun Sen’s fiery performance is possibly his most brazen act of defiance in more than 30 years in power — many felt the economy would be destined to suffer. </p> <p>And yet, even in the face of shrinking civilian freedoms, it didn’t. In fact, business leaders were so unruffled in the days before the vote that many spoke with a pang of guilt about the economy’s resilience. </p> <p>“Compared to the previous election year in 2013, when market activity slowed considerably, Cambodia’s real estate sector remained buoyant during 2018,” says Ross Wheble, country head of Knight Frank Cambodia.</p> <p>Cambodia’s real estate sector has achieved unprecedented growth in the past few years as excitement builds around big shiny condos. </p> <p>Indeed, real estate has been one of the country’s best performing sectors in recent years and one of the pistons powering the economy.</p> <p><img alt="The ever-evolving cityscape in Phnom Penh is these days as likely to feature high-end housing developments and skyscrapers as characterful markets and traditional shophouses. Bun Thy/Shutterstock" src="/documents/10204/0/shutterstock_795424423-compressor.jpg/115d88cf-1406-4f87-9445-3d72c8d9ed3d?t=1552627541541" /></p> <p>Fears, however, have been surfacing that the huge supply of units coming onto the market would propel it headlong into a bubble. Whilst no such disaster has materialized, with secondary markets having provided a lifeline, signs of softening have emerged.</p> <p>The fourth quarter last year saw a total of eight new projects completed, releasing 2,234 units on the market. The highest influx in completed supply is in the mid-range segment, which accounted for over 40 percent of the total completed stock.</p> <p>Yet, despite weathering the political drama, the market saw a drop in approved investment, a move thought to try and regulate supply and demand. According to the latest statistics from the Ministry of Land Management, Urban Planning and Construction, the volume of approved projects in the final quarter of the year is estimated to have fallen from 898 in third quarter to 490.</p> <p>Real estate services company CBRE, in its recent fourth quarter update, reports: “Whilst the year is anticipated to have finished rather poorly, fears over the impact of the general election seem not to have affected investor confidence too strongly, with almost USD6 billion invested into construction and circa 3,400 projects approved over the year.”</p> <p><a href="http://www.property-report.com/detail/-/blogs/propertyguru-cambodia-property-awards-casts-wider-net-on-nominees-for-2019-editi-2" target="_blank"><strong>More: PropertyGuru Cambodia Property Awards cast wider net on nominees for 2019 edition</strong></a></p> <p>Analysts expect growth in the supply trend of serviced apartments to moderate amid a deluge of units, with more mid-tier launches as in 2018 to compensate for sluggish sales of high-end properties. Some of those recent mid-tier launches include the condominiums East View, Sky 31, and The View, all of which typically include swimming pools and fitness centres and retail for around USD200,000 a unit.</p> <p>Market sentiment in the year ahead remains optimistic, with Chinese property investment in second-tier cities largely providing the backbone for Cambodia’s economic growth in recent years. “Whilst the market certainly slowed as compared with 2017, the sector continued to attract sizeable foreign investment underpinned by investment from China as part of its ‘Belt and Road Initiative’,” says Wheble, referring to China’s major economic strategy. </p> <p>Historically, the majority of investment in Cambodia has come from within Asia, but Wheble points out that in 2018, “there was a noticeable increase in the number of European and American companies looking to set up operations in the Kingdom, which is a good sign for the overall economy.”</p> <p><img alt="The southern city of Sihanoukville has transformed from a sleepy favourite of backpackers to a place replete with sleek condos and casinos: largely driven by Chinese investment. Nikolette Legian/Shutterstock" src="/documents/10204/0/shutterstock_753773773-compressor.jpg/ff25f0a5-1d26-4762-ae4b-361ecb3a63a9?t=1533794669000" /></p> <p>Whilst Phnom Penh is still where the flow of money in real estate is directed, Cambodia’s second-tier cities have shown incredible growth.</p> <p>Sihanoukville, the southwestern coastal city, made international headlines last year for its astounding transformation. It has become a self-contained Chinese enclave. Factories and casinos comprise much of the economic activity while speculation continues to drive up land and property prices to unfathomable heights, having increased by as much as 200 percent over the past 12 months.</p> <p>Sihanoukville boasts some sophisticated developments that wouldn’t look out of place in the likes of Bangkok or Jakarta. There is the SeaGate Suite, a USD200 million mixed-use development by KHCN International Investment & Development, and Blue Bay Resort, a USD200 million, 38-storey property.</p> <p>A surprising new trend, however, is the emergence of luxury condominiums on the nearby islands and nature reserves. Among the most impressive are Six Senses Krabey Island, a private resort consisting of 40 free-standing pool villas; Alila Villas on Russey island, with each featuring a private swimming pool and garden; and the super luxury Shinta Mani Wild, a tented camp set amid lush rainforest in the heart of the Cardamom mountains, by the renowned hospitality architect Bill Bensley.</p> <p><a href="http://www.property-report.com/detail/-/blogs/sihanoukville-6-top-spots-in-cambodia-s-coast-with-the-mo-9" target="_blank"><strong>More: 6 top spots in Cambodia's coast with the most</strong></a></p> <p>A couple of hours away from Sihanoukville, in the old colonial towns of Kampot and Kep, residents are also witnessing a spill-over in interest from Sihanoukville.</p> <p>Chem Makara, a 26-year-old worker on a pepper plantation, moved to Kampot from Phnom Penh to escape the hustle and bustle a few years ago. His modest sized house is now worth almost four times what he paid for, as Cambodians come up from Phnom Penh to see which properties they can buy and later to sell to the Chinese. With cruise ships due to begin plying coastal routes along Cambodia and its neighbours, stopping at Sihanoukville and Kampot, among other places, local property owners like Makara are bound to benefit.</p> <p>According to Realestate.com.kh’s annual Real Estate Survey, which asked over 2,000 respondents to rank the city or province they were most likely to purchase property, Phnom Penh is still the most sought-after destination to buy a home. Tom O’Sullivan, CEO of Realestate.com.kh, says that 75 percent of Cambodians still live in the countryside and see Phnom Penh as the most worthwhile place to buy a new home. “Ultimately, those who can afford to do so will purchase a property in the city,” O’Sullivan says.</p> <p>An interesting new trend is the launching of developments in lesser-known, more residential areas of Phnom Penh, aimed at local buyers rather than foreigners. The most popular of these models is the borey, or gated community, a typically cheaper alternative to high-rises with less of the swanky add-ons.</p> <div class="pull-quotes-container">We [have] focused on the environment, green spaces, and beautifully designed houses in our boreys. We want Cambodians to feel proud that their own people can build good homes like in other countries</div> <p>One company blazing a trail in this segment is Borey Peng Huoth Group. Thai Mengly, its CEO, told local media in an interview that when the company started in 2005, there was a lack of beautiful boreys, only flats and personal villas. Their biggest project to date is nothing short of ambitious—a satellite city consisting of 7,000 to 8,000 houses, many of which have already been sold. </p> <p>“We [have] focused on the environment, green spaces, and beautifully designed houses in our boreys. We want Cambodians to feel proud that their own people can build good homes like in other countries. Our main target customers are middle-to-high income citizens,” says Mengly.</p> <p>While boreys are not immune to the oversupply pressures affecting the condo markets, they are said to be more responsive to market shifts as developers can pause construction in a way high-rise developers can’t. The current oversupply of boreys is likely to be absorbed by the local middle-classes in the coming years, analysts say, with more tipped to launch.</p> <p>“[T]here is growing demand from wealthy Cambodians in Siem Reap, as well as those based in Phnom Penh, and we anticipate more borey developments to be launched in the coming years,” Knight Frank states in its 2018 half-year report.</p> <p>Aside from the downward pressure greater oversupply might put on sales and rental prices, which so far have remained steady, 2019 looks set to be a safe one for the property market. </p> <p><img alt="Cambodia’s long-standing prime minister Hun Sen is a divisive figure among many, but his grip on power in the country seems as firm as ever. Shahjehan/Shutterstock" src="/documents/10204/0/shutterstock_589042187-compressor.jpg/565a0f1b-c4b4-4f4c-a343-dd41321127cc?t=1552628412617" /></p> <p>Yet the market will be holding its breath as Hun Sen continues his stand-off with foreign governments. Currently, he is locked in a war of words with the European Union over the removal of Cambodia’s tariff-free access to the bloc in retaliation for his smash-and-grab election win. </p> <p>The EU trading arrangement has helped Cambodia’s garment and rice industries and the wider economy flourish, and an abrupt stop to that “would likely have negative repercussions across the wider economy and dampen demand for real estate over the short term,” Wheble surmises.</p> <p>Hun Sen recently upped the ante and warned the opposition would be “dead” if the EU commit to their threat. “If you want the opposition alive, don’t do it and come and hold talks together,” he proclaimed.</p> <p>The market will be hoping those talks go ahead.</p> <div><em>This article originally appeared in Issue No. 152 of <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">PropertyGuru Property Report Magazine</a>. </em><em id="yui_patched_v3_11_0_1_1552625529860_773" style="box-sizing: border-box; font-family: "bentonsans cond"; font-size: 17px;">Which projects represent the best of Cambodian real estate? Let the world know by nominating them to the 2019 PropertyGuru Cambodia Property Awards. Find more details here: <a href="http://www.asiapropertyawards.com/nomination/cambodia/" style="box-sizing: border-box; background-color: transparent; color: rgb(170, 33, 33); text-decoration-line: none;" target="_blank">http://www.asiapropertyawards.com/nomination/cambodia/</a></em></div>
<p><img alt="Buildings around the East Village of Manhattan, New York City. Ryan DeBerardinis/Shutterstock" src="/documents/10204/0/new-york-dispatch-lead-image-compressor.jpg/f20a3e2c-4775-4c3c-9d86-1a649735d6c3?t=1552019453602" style="width: 1086px; height: 667px;" />For roughly a century, co-operative buildings, or co-ops, have been a formidable force in the New York real estate market. Although the majority of urban areas around the world tend to favour condominium ownership, an estimate by Douglas Elliman Real Estate—the largest brokerage in the New York metropolitan area—reveals 70 percent of residential properties in New York stick to the co-op model. </p> <p>This is even more true with highly coveted pre-war buildings in Manhattan and Brooklyn, which remain one of the city’s symbols of prestige and are almost exclusively co-ops. For tenants, a co-op also has the distinct advantage of offering a measure of control over other residents in the building. </p> <p>“For consumers who want a community to be a part of, co-ops offer that mode of living to a far greater degree than condos,” says Steven James, president and CEO of Douglas Elliman New York City. “Co-ops tend to be smaller buildings with a more cohesive structure. The co-op is really a club. It’s a corporation governed by a board of directors elected by the membership or shareholders. The board makes all decisions about the day-to-day life in the building—especially who can join the corporation or not.”</p> <p>Many residents find that the degree of control that provides is a comfort. For New Yorkers like Bonnie Gorlick, who has owned a share in a Manhattan co-op for years, the model offers a number of advantages. The comparatively affordable price played a role in her decision to invest, as did the presence of a maintenance crew on hand to ensure the outside areas of the property remain in good condition. She also likes the fact that “owners are pre-screened by the board.”</p> <p>That desire to have a say in who lives next door has long been a determining factor in the New York real estate market. </p> <p><a href="http://property-report.com/detail/-/blogs/take-a-look-inside-this-jet-setting-thai-architect-s-california-ho-5" target="_blank"><strong>More: Take a tour inside this jet-setting Thai architect's California home</strong></a></p> <p>“When the for-sale apartment market was created, for better or worse people wanted to be able to pick their neighbours,” says Jeffrey Schwartz of Schwartz Sladkus Reich Greenberg Atlas LLP, a legal firm with one of the largest practices of representing co-operative corporations and condominium associations in the New York metropolitan area. “The first co-ops were created in the 1920s. For many years, that was the only vertical ownership vehicle.”</p> <p>Co-ops remained the only real option for most prospective property owners in New York until the Real Property Law in 1964 changed the rules of the game. Even then, the shift was gradual and condos did not begin to arrive in serious numbers until the 1970s and ‘80s. </p> <p>While co-op ownership may be enticing to full-time New Yorkers, it makes far less sense for international investors. Part of this stems from the fact that co-op boards have rigorous, often bureaucratic approval processes. Most demand full access to an applicant’s financial records, a process James calls “very invasive,” in addition to an in-person interview. </p> <p>“In approving their buyers, they look at financials, assets, annual income. If those assets aren’t domiciled in the U.S., that’s going to be a deterrent,” Schwarz says. “Co-ops want people who will use the property as their primary residence.”</p> <div class="pull-quotes-container">As most co-ops are older buildings, most buyers need to be clear about what work has been done and what work still needs to be done. A lot of questions need to be asked</div> <p>For the latter reason, co-ops are notorious for being difficult, or in some cases impossible, to sublet. While an investor based in Hong Kong or Singapore can easily rent out their condo on the Upper East Side, attempting to do so in a co-op requires ploughing through a daunting amount of red tape. The same is true for making substantial changes or home improvements to a property, particularly in those beloved historic buildings, as co-op boards tend to be resistant to anything that might alter the character of the place.</p> <p>“As most co-ops are older buildings, most buyers need to be clear about what work has been done and what work still needs to be done. A lot of questions need to be asked,” James says. “It’s important to note if there is enough money in a co-op’s cash reserve fund to cover those expenses. A financial statement must be available and all co-op buyers should ask to see that statement.”</p> <p>That being said, for those to who wish to dive into the co-op market, there are options. When considering how and where to invest, the most prudent way to go about it, according to experts, is to think small.</p> <p><a href="http://property-report.com/detail/-/blogs/why-american-real-estate-is-still-a-star-attraction-for-asian-investo-5" target="_blank"><strong>More: American real estate is still a star attraction for Asian investors</strong></a></p> <p>“While a large portion of Manhattan co-ops don’t allow investor purchases, there are some that do. Those are what an investor should seek out with assistance from a local real estate broker,” James says. “The demand for smaller co-op apartments is consistently strong, because the population continues to grow and few small co-op apartments are added to the housing stock, because they are difficult to develop.”</p> <p>In the end, condominiums are a significantly more pragmatic option for the international investor, a fact that is reflected in the current development trends. Although the vast majority of older buildings in New York are still co-ops, the new luxury properties cropping up in trendy areas such as the Williamsburg waterfront near the recently opened Domino Park are all condos. Such places at the upper end of the market offer state-of-the-art facilities and represent a stable long-term investment all but guaranteed to appreciate in value. </p> <p><em>This article originally appeared in Issue No. 151 of <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">PropertyGuru Property Report Magazine</a></em></p>
<p><img alt="" src="/documents/10204/0/malaysia+investment+piece+lead+152.jpg/bd4859e2-c47b-47ca-bd02-38124ce1f8f4?t=1551418605170" style="width: 1400px; height: 640px;" />So many new hotels have opened in Kuala Lumpur in the past year that one wonders if the Olympics are coming to town—that is, the six-hundred thread-count Olympics. Four Seasons, Banyan Tree, W, Alila, The RuMa, and Pavilion all entered the arena in 2018, with the massive EQ imminent, and Park Hyatt coming in 2020. There’s also the barrage of badass bars and amazing restaurants hanging up shingles across the city.</p> <p>KL was always an easy place to visit, a smart place to shop, a great place to eat, and a fun place to party, but caught between hyper-orderly Singapore and byzantine Bangkok, it always seemed a little... bland. Times are changing, however, and it’s largely driven by three things.</p> <p>First there’s the cool kids, who are giving their regional peers a run for their money in terms of mixology, culinary innovations, and generally creating a scene. Second, the developers whose visions for projects are finally coming to fruition no matter hell, highwater, or—the third reason—an unsure and fascinating political climate.</p> <p>No, you certainly can’t call KL bland these days.</p> <p>In May, the 92-year-old former long-term Prime Minister Mahathir Mohamad ousted his former protege Najib Razak, who left office under a cloud of corruption and was recently charged with new graft allegations for allegedly looting 1Malaysian Development Berhad, a state fund.</p> <div class="pull-quotes-container">Everybody is extremely confident that stepping up from kleptocracy to technocracy will only bring good to Malaysia. However, changes take time to be completed and the residential market, in general, is still waiting to see the results of all the new policies</div> <p>Despite the international controversies swirling, Najib ran a tight race and his (and formerly Mahathir’s before he joined the opposition) party had held power since they country’s independence so May’s election results caught everybody by surprise.</p> <p>“I would say that all Malaysians are still trying to adjust themselves to the new direction,” says Dr. Daniele Gambero, CEO of REI group of companies. “The first thing to be said is that everybody is extremely confident that stepping up from kleptocracy to technocracy will only bring good to Malaysia. However, changes take time to be completed and the market, in general, is still waiting to see the results of all the new policies.”</p> <p>These include a new five percent Real Property Gains (RPG) tax after five years for locals and an additional five percent RPG tax for foreigners; and an increase in the stamp duty on the transfer of property valued above MYR1 million (USD242,245), from three to four percent, in the government’s Budget 2019.</p> <p><img alt="The election of Mahathir Bin Mohamad in 2018 has helped restore confidence to the housing market. Nevertheless, the impact of new policies has yet to be seen. Djohan Shahrin/Shutterstock" src="/documents/10204/0/shutterstock_1091884052-compressor+%281%29.jpg/a49b872d-7573-47ab-9e77-8000eb0769d9?t=1551418963254" /></p> <p>Buoyancy, though, in Budget 2019, comes in the form of the waiver of the stamp duty, until December 2020, for first-time homebuyers on the instrument of transfer and loan agreement for residences worth up to MYR300,000. The same is also waived for six months for first-time buyers purchasing homes worth MYR300,000 to MYR1 million. Such exemptions and initiatives, states Knight Frank Malaysia in their Real Estate Highlights 2nd Half 2018, “are expected to kick-start the housing market moving into 2019 and beyond.”</p> <p>The wheels are already turning: Knight Frank saw more launches of luxury residential developments in KL in 2H2018 than in the first half of the year. That’s good news as the country has been holding its breath for a while now. The third and fourth quarters have seen a slow market, with growth at 4.4 percent in Q3 2018 down a smidge from 4.5 percent in Q2. “Adding further tension to the above is the ongoing China-U.S. trade war, which sees Malaysia right in the middle,” Gambero says.</p> <p><a href="http://property-report.com/detail/-/blogs/expats-still-eye-malaysian-property-for-sound-investme-6" target="_blank"><strong>More: Expats still eye Malaysian property for sound investment</strong></a></p> <p>According to Knight Frank’s research, by end of 2018, the cumulative supply of high-end condos and residences in the KL area totalled 53,033—thanks to completions in the second half of such big names as The Ruma Residences, Pavilion Suites, Premium Residences @KL Gateway and the massive Dorsett Residences Sri Hartamas. Another 931 are expected to come on line by the end of first quarter this year.</p> <p>Where the luxury market is most concentrated—KL, Penang, and Johor Bahru—supply is far exceeding demand, especially with overseas developers simultaneously launching huge quantities of luxurious residential units. Whilst there have been “quite substantial support from national buyers”—Knight Frank’s Wealth Report 2018 states nearly half of Malaysia’s ultra-high net-worth individuals (those personally worth more than USD50 million) plan to buy an investment property in-country in the next few years—Gambero asserts that attracting, rather than scaring, foreign investors must be a major priority.</p> <p><img alt="While other markets in Malaysia have their appeal, the blend of commercial and cultural flavours in the capital Kuala Lumpur is hard for many investors to resist. Migel/Shutterstock" src="/documents/10204/0/shutterstock_192189830-compressor.jpg/a4f7bf18-fd71-4216-9010-00a2c1c7352d?t=1551419362438" /></p> <p>“Local developers were betting on the possibility of incoming interest from overseas buyers, which didn’t happen as much as expected,” Gambero says. Currently, less than one percent of property is owned by foreigners, according to the Ministry of Housing. “Numbers are clearly saying that it might be taking years for the market to fully absorb the supply.”</p> <p>Thus, the dip in asking prices reported in 3Q2018 came as little surprise. “Developers are coming to the tipping point of accepting lower profits or maybe minimal losses in order to just dispose of as many as possible unsold units. It’s all about cash flow,” says Gambero.</p> <p>While the upscale residential resale market was generally flat, Gambero advises the smart play would be to sit on one’s holdings. “Capital gains, looked at as a long-term game, say five to seven years, is still showing a good potential to increase. Areas such as KL, Greater KL, Penang, and Kota Kinabalu might be seeing three- to four-fold gain.”</p> <p><img alt="Kota Kinabalu, the capital of the state of Sabah in east Malaysia, is seen as one of the nation’s rising stars for development. hkhtt hj/Shutterstock" src="/documents/10204/0/shutterstock_1073940077-compressor.jpg/4d09a903-fd1c-47b8-827e-b3baf43a2509?t=1529560871000" /></p> <p>Another remedy to the sales lull would be to tweak the price-size-unit ratios. According to Knight Frank, “schemes launched recently [in KL] are observed to have higher composition of units with smaller built-up area below 1,000 sqf resulting in lower quantum pricing, but higher price on a per sqf basis.” It’s in this game where the bad boys are making a play to dethrone Four Seasons Place Kuala Lumpur. Currently the record-holder for raking it in, a Four Seasons residential duplex (there are 262 units) is estimated at MYR21million, or MYR3,300 per sqf.</p> <p>Not to be outdone, KSK Land launched Tower B of Yoo8 @ 8 Conlay, the Kempinski branded residences, with starting prices of MYR3,260 per sqf. Pavilion Suites adds to the competition, putting up some pretty impressive per quantum numbers: condos priced from MYR2.2 million to MYR5.9 million, and penthouses going for MYR27.98 million. When your sky-scraping city-centre condo comes with special privileges at couture, jewellery and luxury stores in the partner retail mecca, not to mention access to private planes, yachts and limos arranged by a dedicated concierge, it isn’t surprising Pavilion sold most of its units ages ago in a private viewing.</p> <p><a href="http://property-report.com/detail/-/blogs/evolving-malaysian-property-market-rises-above-generational-and-economic-hurdl-8" target="_blank"><strong>More: Evolving Malaysian property market rises above generational and economic hurdles</strong></a></p> <p>Beyond the diamond-encrusted market, another source of hope is the multinational corporation segment. With KL ranked as Southeast Asia’s second most liveable city by the Economist Intelligence Unit, InvestKL CEO Datuk Zainal Amanshah, in an interview with NST Property last year, points to great potential for companies with money to spend on housing. He said large MNCs like to keep things simple, with self-contained developments that promote the live-work-play hat-trick, with international schools, integrated retail, office and residential components, and access to good transportation infrastructure such as mass transit. “MNCs appreciate the affordability, good connectivity, and well-designed mixed-use developments, which will be Kuala Lumpur’s trump card as it strives to be one of the leading cities in the ASEAN region,” he said.</p> <p>Whether they’re going to roll out the red carpet, or just put the kettle on, it might be about time the KL residential market follows hospitality in getting prepped for those guests.</p> <p><em>This article appears in Issue No. 152 of <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">PropertyGuru Property Report Magazine</a>. What developments do you think are the best in Malaysia? Nominate them to the 2019 PropertyGuru Asia Property Awards (Malaysia). Find more details here: <a href="http://www.asiapropertyawards.com/nomination/malaysia" target="_blank">asiapropertyawards.com/nomination/malaysia</a></em></p>
<p><img alt="" src="/documents/10204/0/singapore-investment-feature-lead-compressor.jpg/f9b27232-6bc2-4159-87ac-73e187144f19?t=1550807947364" style="width: 1400px; height: 640px;" />It’s a tired trope throughout Asia to say Singapore lacks soul. Clean, walkable streets. Efficient traffic. Effective public transport. Well-organized family fun. Innovative bars and restaurants. Shiny modern towers and lush planned parklands. Ugh. Who wants that?</p> <p>Well, if we’re talking about players in the luxury property market, lots of people.</p> <p>“Singapore is known as a safe haven in Southeast Asia, with a stable currency and transparent housing regulations,” says Christine Li, senior director and head of research for Cushman & Wakefield Singapore. “Risk involving property development is virtually non-existent for retail investors,” adds Li. After 15 consecutive quarters of price declines—which, experts say, signalled not softer innate demand, rather a wait-and-see attitude with regards to government policies—prices began rising mid-2017 and jumped 9.1 percent by the halfway point this 2018.</p> <p>Experts are predicting a 10 percent expected value growth in properties in 2018, even amid recently implemented cooling measures last July 5. Concerns about “euphoria” in the market had the government announcing it would raise the Additional Buyer’s Stamp Duty (ABSD) rates and tighten loan-to-value (LTV) limits on residential purchases. The day before the measures kicked in, potential buyers flooded private home showrooms across the city-state hoping to lock in a sale at a better deal. The feeding frenzy resulted in sales jumping 55 percent year-on-year in July, with 1,724 units sold in July versus 654 in June. Developers brought forth new launches, offering 2,239 in July—the highest since March 2013.</p> <p>Lest that encourage fears of a bubble, it’s worth noting what proportion of the country’s overall housing market we are talking about, says Alex Shlaen, founder of Panache Management, who advises HNWI and UHNWI on property investments and collaborates with luxury real estate projects. Some 80 percent of Singaporeans live in subsidized government-built flats. Of the rest of the population that owns homes built by private developers, only a small number of those—perhaps five percent, Shlaen figures—are high-end. “It’s very far from a bubble,” he states.</p> <p><img alt="With its selection of hip bars and restaurants and array of visually spectacular skyscrapers, Tanjong Pagar has emerged as one of Singapore's most happening neighbourhoods" src="/documents/10204/0/singapore-investment-feature-150-2-compressor.jpg/4660b3e4-7124-429e-a7dc-bed031f8d7f2?t=1550826070042" /></p> <p>Besides, you can count on the government to swoop in and mitigate things. From July, though Singaporeans and Singapore permanent residents (SPR) saw no change in the ABSD on purchasing their first residential properties (zero- and five percent respectively), those buying subsequent properties—foreigners included (except passport-holders of Iceland, Lichtenstein, Norway, Sweden, and the U.S. who all have a special exemption)—saw their ABSD rates jump five percent. That means that foreigners purchasing a residential property worth more than SGD1 million (USD730,000) now pay a 20 percent ABSD on top of a tiered stamp duty that, as of 2018, tops out at four percent.</p> <p>“You basically have to pay nearly a quarter of the value of your purchase, but it doesn’t go to the value of the property,” Shlaen says, adding that foreign buyers’ resell pool is smaller because other foreigners face the same restrictions and there are fewer visas being issued. It’s also now more difficult for everyone to maximize their loans as a percentage of their property value. All LTV limits have been tightened by five percentage points, with the highest now being 75 percent.</p> <p>However, a certain slice of buyers is nearly immune to such concerns. “Investors and self-stayers—locals who purchase a residence for their primary home—are competing for the not-so-large pool of high-end and luxury properties,” Shlaen says, adding the luxury condo market is affected by foreigners and permanent residents, particularly HNWI and UHNWI moving their money and possibly selves out of Malaysia and Indonesia because of the political climate and lower valued currencies.</p> <p><a href="http://property-report.com/detail/-/blogs/6-places-to-dine-and-discover-in-north-east-singapore" target="_blank"><strong>More: 6 places to dine and discover in north-east Singapore</strong></a></p> <p>“Singapore is the most undervalued of developed cities,” Shlaen posits. Singapore luxury real estate prices are about half the average Manhattan and London rates of SGD8,227 per square foot—a pretty good deal for buyers already “drawn to Singapore for its lifestyle, the education, pro-business environment, and security,” says Lee Nai Jia, senior director and head of research at Knight Frank. “The offerings of luxury residential projects are more important than market fundamentals, and it must align with the preferences of HNWIs.”</p> <p>Luxury properties are defined as 2,500 sqf and above in the prime districts 9, 10, 11 (the island’s central commercial core) —and the newly added 1 and 4 (Marina Bay and Sentosa). Good class bungalows, sitting on land no less than 15,000 sqf, are the “pinnacle of the luxury property market,” Shlaen says. As for conservation shophouses, transactions for those hit a five-year record year-on-year in Q1 2018, jumping 280 percent to a total value of nearly SGD488,200,000.</p> <p><img alt="" src="/documents/10204/0/singaporean-investment-feature-6-compressor.jpg/641a11b8-c07b-4f93-bf57-4509df2c0e47?t=1550828404957" /></p> <p>Still, larger developments make bulk of the market—in a small country with highly limited land, that means acquiring space from the government or people who already live there. En bloc sales offer residents of a building above-market price to leave en masse, after which developers take down the property and expand it: once larger units in a lower building become smaller units in a taller building. “Usually developers never go under the limit of zoning restrictions because they want to maximize profits,” Shlaen says. “In general, buildings 20 years and older are prime targets, especially if the location is good. Owners get the feeling it’s time to go en bloc rather than renovating.”</p> <p>The en bloc market went a bit gangbusters after the government relaxed cooling measures in March 2017. “Buyers treated the fine-tuning of the seller’s stamp duties in 2017 as a signal that the market had bottomed,” says Lee Nai Jia, “prompting more buyers to take advantage of what they assumed were fleetingly low prices.</p> <div class="pull-quotes-container">Pent-up demand from income growth and upgrading needs will continue to support the market moving forward. Home purchasers looking for a safe haven with appreciation prospects will still find Singapore attractive</div> <p>The higher sales encouraged developers to bid for the limited Government Land Sales (GLS) sites aggressively, since most have depleted the land bank. This led to collective sales, which further fuelled demand for homes by owners needing replacements for the ones they had sold.”</p> <p>Lim Yew Soon, managing director of EL Development Pte Ltd, believes that now, thanks to rising en bloc prices and the quick work of developers toward 2018 in “jumping on the bandwagon of replenishing their land banks… the collective sales have almost reached the end of their cycle… Our company is in the process of acquiring a collective sales site in the Newton area, which we look to redevelop into a high-rise luxury residential development in 2019 if our acquisition is successful.”</p> <p><a href="http://property-report.com/detail/-/blogs/same-sex-couples-cast-adrift-in-singapore-s-property-mark-6" target="_blank"><strong>More: Same-sex couples cast adrift in Singapore's property market</strong></a></p> <p>A slew of new such homes are set to come online the coming years. Regulations are changing, Shlaen says, allowing for buildings in some neighbourhoods to have higher floors than in previous generations. “In view of current loan curbs and heightened land costs, we expect developers to gear towards smaller unit sizes to keep price quantum affordable,” says Christine Li. “This will also allow them to charge a higher unit price for each unit. Developers would also look to incorporate smart home features to differentiate their launches and attract tech-savvy millennials.”</p> <p>Other trends to watch out for? Says Lim Yew Soon, “The coming months would be a buyer’s market. Projects in good locations like those near MRT stations and popular schools will continue to do well. On the policy front, the government’s criteria for green buildings and for buildings to be built with higher productivity construction methods get more and more stringent each year, which would reduce the carbon footprints of future developments over time.”</p> <p><img alt="Singapore is regarded as one of the most forward-thinking nations in Asia when it comes to sustainable design and incorporation of green landscaping into major projects" src="/documents/10204/0/singapore+investment+feature+150+4.jpg/e77c6414-b76e-4649-ad9f-f9934e888fc5?t=1550826521400" /></p> <p>Lee Nai Jia agrees: “New wealth is created due to the advent of disruptive technology, making design vital. More buyers will look at the character or the heritage of the area. Bugis and Tanjong Pagar may be new hotspots—they not only cater to the professionals, but also offer great views and proximity to work.” Not to mention a plethora of the coolest restaurants and bars in the city.</p> <p>The market is likely to undergo adjustment as it digests the higher ABSD and tighter loan curbs, says Christine Li. “Nonetheless, fundamentals remain sound and unchanged. Pent-up demand from income growth and upgrading needs will continue to support the market moving forward. Home purchasers looking for a safe haven with appreciation prospects will still find Singapore attractive,” she says.</p> <p>Indeed, even after the mass shopping spree on July 5, developers reported that sales continued despite the implementation of the cooling measures.<br /> <br /> “It’s like you’re sitting in your car, your handbrake is on and your foot is also on the brake pedal, and the car is still moving,” Shlaen says. “What does that say? It’s a very healthy market and people feel very safe to park their money in a triple-A investment.”<br /> <br /> Certainly, such a sense of stability is good for the soul, no?</p> <p><em>This article originally appeared in <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/316198" target="_blank">Issue No. 150</a> of PropertyGuru Property Report Magazine</em></p>
<p><img alt="FredAnzic/Shutterstock" src="/documents/10204/0/china-investment-2018-lead-image-compressor.jpg/8d0d6c55-9a35-498b-8f18-dab5689d5064?t=1549342147179" style="width: 1400px; height: 640px;" />Julius Lee ponders just how much his house has appreciated in the 12 years since he bought it.</p> <p>The 37-year-old electrical engineer bought his two-bedroom apartment in his home town of Dandong, bordering North Korea, for RMB320,000 (USD46,400). It is now worth about RMB600,000. </p> <p>“The price has doubled so far,” said Julius.</p> <p>But that is nothing compared to the sort of gains other homeowners have made since Dandong was swept up in China’s housing boom.</p> <p>“My property would be considered growing slower than average [in Dandong]. For some other properties the price has increased a lot,” he said.</p> <p>The unit price of his property is currently RMB5,000 per square meter. The others to which he is referring lie further west on the route to North Korea where properties fetch around RMB8,000 yuan per square meter.</p> <p>Dandong, a city less travelled among foreigners, has been boosted by a thaw in diplomatic relations between North Korea and the rest of the world, and follows tireless efforts by Beijing to rev-up its economy with big real estate projects – with mixed results.</p> <p><a href="http://property-report.com/detail/-/blogs/a-little-known-chinese-border-town-profits-from-the-north-korea-deten-6" target="_blank"><strong>More: A little-known Chinese border town profits from the North Korea détente</strong></a></p> <p>However, although Dandong’s blossoming should be a vindication of Beijing’s advances to breathe life into stagnant cities, its booming housing market reflects the headache second-tier cities have posed amid efforts to cool the industry.</p> <p>Since 2016, Beijing has made a concerted effort to rein in its real estate industry amid worryingly high property prices.</p> <p>On average, house prices in China have been growing nearly twice as fast as national income over the past decade, buoyed by a rising population and economic growth.</p> <p>In 2016, the government decided enough was enough. Average home prices in 100 major cities in China rose 16.6 percent in September that year, compared with the year before.</p> <p>The government rolled out a raft of cooling measures. One of these was to require some first-time buyers to put down a 40 percent down payment, as opposed to 35 percent. Certain second-time buyers were made to pay a minimum 70 percent, compared with 50 percent before.</p> <p><a href="http://property-report.com/detail/-/blogs/how-the-trade-war-will-alter-the-global-economy-and-chinese-property-mark-1" target="_blank"><strong>More: How the trade war will alter the global economy and Chinese property market</strong></a></p> <p>Wang Menghui, minister of housing and urban-rural development, told reporters towards the end of 2017 that authorities will keep anti-speculative, city-specific measures consistent and will not loosen controls against speculation.</p> <p>"The real estate market must stick to the idea that 'homes are for people to live in, not for speculation'," he said.</p> <p>While some major cities such as Beijing and Shanghai have shown signs of a slowdown, second-tier cities have been going strong.</p> <p>The dwindling hostility on the Korean peninsula prompted investors to snap up properties in Liaoning, Hunchun and Jilin provinces.</p> <p>The result of this was seen in May, when China's home prices recorded their fastest growth in nearly a year. The figures highlighted that smaller cities still rely on real estate for growth.</p> <div class="pull-quotes-container">A cat and mouse game is in play as authorities look to keep markets cool in one cluster of cities only to find people funnelling their money elsewhere where regulations have yet to be tightened</div> <p>Posting a statement through its official WeChat account, Dandong Municipal Government said in May that property buyers without local household registration would not be able to resell newly-built property in the city's New District until two years after purchase.</p> <p>Yet while it may take some time before Dandong is brought under control, the measures are taking effect in other second-tier cities.</p> <p>Hainan is China’s southernmost province and is popular for its subtropical climate and clean air – a treasured commodity in smoggy China. It is known as ‘China’s Hawaii’.</p> <p>In March, new home prices in Haikou, the capital city of the island, rose 2.1 percent from the previous month – an increase surpassing any other Chinese city, Beijing and Shanghai included.</p> <p><img alt="Hainan Island, known as the Hawaii of China, is another secondary market that is witnessing house price rises and an upsurge of interest from investors. Sergey Filinin/Shutterstock" src="/documents/10204/0/china-investment-2018-4-compressor.jpg/a09c1e89-0445-41fa-be78-1c2a90733a6b?t=1549342728688" /></p> <p>“The surge in Hainan’s property prices has been fuelled by market speculators. The province probably has more property investors than elsewhere,” said Yan Yuejin, director of the E-house China R&D Institute, a market intelligence firm based in Shanghai.</p> <p>But following measures introduced in April, Hainan has been made to fall in line.</p> <p>Chen Gaige, a real estate analyst specializing in Hainan, told Chinese media that the crackdown is having a noticeable cooling effect.</p> <p>"Prior to the regulations, developers could obtain their pre-sale permit as building tops were being sealed, but now some of them have had to wait three months after construction was completed, yet still haven’t got one," Chen said.</p> <p>"Both the purchase and supply ends have been effectively controlled," Chen said, noting many developers are also taking a wait-and-see attitude toward the local market.</p> <p>In the eastern coastal city of Xiamen, Fujian Province, transactions dipped by 28.63 percent during the first half of 2018 compared to the year before. Further dips are expected in other cities where further regulation comes into effect.</p> <p>At the start of August, Shenyang in northeast China's Liaoning Province expanded restrictions on land related to commercial property purchases.</p> <p><img alt="Cooling measures and local regulations, encouraged by the Chinese government, have affected investor sentiment in previously hot destinations such as Shenyang. aphotostory/Shutterstock" src="/documents/10204/0/china-investment-2018-3-compressor.jpg/6d3bf478-db45-422a-a095-21c2dea9e8ef?t=1549342345427" /></p> <p>Dandong resident Julius said he has detected trepidation among investor friends who were bullish some years ago. One university friend has amassed more than 10 properties in Shenyang since he began investing in real estate in 2009.</p> <p>“He saw that the price would go up. Every day he has earned a lot of money from his investments. He started investing when the prices were going up.”</p> <p>“I met him before and he was very confident in 2010 but I think now he’s not quite as bullish.”</p> <p>In many of the big cities measures to taper demand appear to be working but buyers are scrambling to get a bargain.</p> <p>Real estate services company Jones Lang LaSalle said in a second quarter update that price caps remained in place for new launches in Shanghai and buyers continued to be actively trying to acquire units at below market prices.</p> <p>In Beijing developers have been offering more competitive prices in a bid to increase sales.</p> <p><img alt="Although the centre of Beijing remains one of China's prime spots for investment, there have been signs that the market is easing off in the country's capital. ESB Professional/Shutterstock" src="/documents/10204/0/china-investment-2018-2-compressor.jpg/ead85eb3-5e92-4c63-86c3-987eb28b36b1?t=1549342526840" /></p> <p>“The tight policy stance is unlikely to be relaxed in the short term in China as governments aim to curb speculation and stabilize the housing market. Tight financing conditions and ongoing deleveraging exercises by some developers may see more new projects launched in a bid to ease cash flow pressures,” the report said.</p> <p>Jack Xiong, the China director of Savills research and consultancy, said: “The first-hand, mass-market residential market received ample supply during [the second quarter], the majority of which was joint ownership and price-capped housing. Authorities continued to enforce strict regulations to stabilise average housing prices in the market.”</p> <p>Experts predict that Hong Kong’s prices are unlikely to rise by much in the second half of 2018.</p> <p>Carol Wu, head of China and Hong Kong research at DBS Bank (Hong Kong), said slower annual growth rates are likely to be the norm for the coming decade.</p> <p>“Our prediction of about 5 to 10 percent price gain [in 2018] has already been reached,” said Wu.</p> <p>“Hong Kong’s home price growth will decelerate, rising at no more than 2 percent a year on average through 2030, a rate similar to the inflation rate, given the growth in GDP per capita does not rise beyond expectations.”</p> <p><a href="http://property-report.com/detail/-/blogs/winners-circle-propertyguru-asia-property-awards-china-2018" target="_blank"><strong>More: Winners of the PropertyGuru Asia Property Awards (China) 2018</strong></a></p> <p>The disparity between the patterns in property prices between big and smaller cities reflects China’s mountainous challenge in putting the brakes on an industry that has been growing wildly for so long.</p> <p>A cat and mouse game is in play as authorities look to keep markets cool in one cluster of cities only to find people funnelling their money elsewhere where regulations have yet to be tightened.</p> <p>This spread of money has brought prosperity to towns and cities largely forgotten and ignored, with new sources of labour. More than 20 second-tier cities hope to attract some of the growing number of educated workers leaving big cities due to the high cost of living.</p> <p>For the likes of Julius, however, all this money sloshing around in property is dizzying and unpredictable. Though he has considered buying a home for investment in the past, he feels he’s better off sticking to what he knows – electrical engineering.</p> <p>“There’s just too much risk in property at the moment.”</p> <p>As cooling measures take hold across the Middle Kingdom it is likely he won’t be the only investor experiencing a certain degree of chill.</p> <p><em>This article originally appeared in <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/316198" target="_blank">Issue No. 150</a> of PropertyGuru Property Report Magazine</em></p>
<p><img alt="While Singapore has made some progress on LGBT issues in recent years, the country’s reputation for conservatism is echoed in archaic rules governing the purchase of the island’s HDB public housing. lazyllama/Shutterstock" src="/documents/10204/0/dispatch+151+lead.jpg/0ef046a4-eb70-4963-adcc-88c55d14ee74?t=1547037355520" style="width: 1006px; height: 667px;" />Singapore can be excused for taking pride in its breakneck transformation from sleepy seaside port to fourth on the International Monetary Fund’s list of richest nations. This 50-year evolution can be partly attributed to the rigid planning that has, on the one hand, fostered the world’s most successful public housing program, and on the other, earned it the reputation of being the governmental equivalent of an overprotective parent. </p> <p>Often called “The Nanny State,” the island nation can be seen as strict with its 5.6 million children. Rules govern what Singaporeans say (speaking against the prime minister and Christianity are both illegal) and how they behave (famously, there are fines for chewing gum, littering, graffiti, spitting, and jaywalking). The upshot is a gross national income of USD78,293 (the second highest globally), and a public program housing 80 percent of the population, 90 percent of whom own their own Housing and Development Board (HDB) flat. </p> <p>However, not all groups are included in the math of Singapore’s success. One such group? Singapore’s Lesbian, Gay, Bi-Sexual, and Transgender (LGBT) community. </p> <p>Singapore currently has the world’s second highest rate of home ownership, largely due to a generous system of grants and subsidies the HDB provides its citizens. These, however, come with restrictive conditions. Married heterosexual couples, who can apply for housing grants at age 21, enjoy the biggest advantage; whilst unmarried couples, singles, and gay couples are restricted to applying under the Single Singapore Citizen Scheme or Joint Singles Scheme, both of which require applicants to be at least 35. </p> <p>These restrictions may not be specifically targeted at LGBT families, but Indulekshmi Rajeswari, a lawyer, LGBT activist, and author of Same But Different: Legal Guidebook for LGBT Couples and Families in Singapore, points out the government has stated openly on several occasions that they are meant to “encourage families.” As same-sex marriage is not recognised, “LGBT people are cut out of this definition. Only those in a recognised family unit—primarily married heterosexual couples—are normally allowed to buy a HDB apartment.” </p> <p><a href="http://www.property-report.com/detail/-/blogs/5-best-southeast-asian-cities-for-lgbt-to-buy-prope-15" target="_blank"><strong>More: 5 best Southeast Asian cities for LGBT property seekers</strong></a></p> <p>Ann, a new homeowner who identifies as lesbian, felt pressured to buy private property as she didn’t feel secure waiting eight years to be eligible for an HDB flat. She ponders, “What if I waited until I reached 35, and they say, ‘no, the age is now 45’?”</p> <p>Buying a private flat meant a big mark-up for Ann, whose two-room condo (still three years from completion) cost USD650,000. The same sized HDB apartment would’ve cost a married couple between USD150,000-220,000. Because Ann’s partner is a foreigner, purchasing the apartment together would have resulted in a 20 percent Additional Buyers Stamp Duty. Since her income and savings weren’t enough to secure a mortgage solo, she purchased the apartment with a friend.</p> <p>Some in the industry feel that the limited supply of new HDB apartments, coupled with an elderly generation of homeowners reluctant to give theirs up, is locking many young Singaporeans out of the market. Currently, Singaporeans who qualify for HDB flats have to wait three years for Built-to-Order apartments to be available. “Affordability and costs of living are bigger issues than the alleged ‘LGBT segregation,’” says Wenhui Lim, director of Singapore-based firm Spark Architects.</p> <div class="pull-quotes-container">I know a lot of LGBT couples who have chosen to move their lives elsewhere, because here it is ignored that we are humans, too</div> <p>In fact, a large portion of non-homeowners continue to live at home. Singapore’s 2016 National Youth Council Survey reveals 97 percent of unmarried young people live with their parents. </p> <p>For some in the LGBT community, though, this might not be an option. </p> <p>“If your parents aren’t accepting of who you are, you get chased out of the house,” says Deveshwar Sham, a transgender activist who runs Kopitiam Brothers, a shelter and support group for transgender men.</p> <p>Renting poses its own problems. Legally, LGBT individuals are not protected from discrimination, meaning landlords can opt not to rent to them. Sham relates experiencing first-hand the difficulty of renting a room as a transgender man. “Renting was an issue, because as I was transitioning, I was looking more male, but my ID still showed I was female. Landlords would think, ‘oh, you might be a thief or a con man.’ They don’t discriminate in front of us, or publicly, but they’ll say they already have a tenant,” he relates.</p> <p><a href="http://www.property-report.com/detail/-/blogs/alternative-short-term-rentals-gaining-popularity-in-singapore" target="_blank"><strong>More: Alternative short-term rentals gaining popularity in Singapore</strong></a></p> <p>Since Sham transitioned, his ID now states he is male, making his later marriage to his wife legitimate, and easily qualifying him for the HDB subsidies. Transitioning has drastically improved his life. “If I’d not transitioned, I would have considered traveling out of Singapore,” he admits, “but now that I have, I feel comfortable in my country, and don’t have my rights stripped off of me.” </p> <p>As with some of its more conservative neighbours in Asia, Singapore’s stance towards its LGBT residents could be costing it talent, and money. China, for instance, represents the world’s third largest “pink economy”, with 90 million LGBT Chinese with a total spending power of USD928 billion, according to the World Property Journal. When it comes to where to invest those dollars, they’re more likely to buy property in such foreign markets more accepting of their lifestyle as Bangkok, Phuket, and Manila. </p> <p>Singapore’s policies not only cost foreign investment, but there’s a danger LGBT Singaporeans will emigrate to more tolerant countries when they’re ready to settle down and buy property. </p> <p>Ann, for one, hasn’t ruled out leaving Singapore one day. “Even though I purchased this property, it may not be somewhere I want to be for life. If the value increases, I may want to sell it off and move overseas,” she says. “I know a lot of LGBT couples who have chosen to move their lives elsewhere, because here it is ignored that we are humans, too.”</p> <p><em>This article originally appeared in <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">Issue No. 151</a> of PropertyGuru Property Report Magazine</em></p>
<p><img alt="A co-working space. Phichat Phruksarojanakun/Shutterstock" src="/documents/10204/0/shutterstock_1051332527-%281%29-compressor.jpg/a1f82c72-e90b-46b3-9c34-f11b7acb9aaf?t=1546499130165" style="width: 1400px; height: 640px;" />Sand in your toes, a light sea breeze ... It wasn’t too long ago that the cliché of a coworking space in Asia centred on dreadlocked digital nomads island-hopping through a professional gap year.</p> <p>And while small business owner-operators can still plug in from a beach shack in Canggu to confer with their factory in Guangdong whilst managing sales in Atlanta, research by Colliers reveals the share of freelancers and independent workers using flexible workspaces dropped by 15 percent over the three years ending in 2017.</p> <p>It’s not that fewer are living the laptop life; no, the flexible workspace market has exploded in Asia-Pacific over the past five years thanks to the enthusiasm of far bigger players on both the supply and demand sides.</p> <p>Big international operators are moving aggressively into the region, including WeWork, which opened its 200th location globally in Singapore in 2017 and is sending its coworking tentacles across Southeast Asia.</p> <p>Major property owners are getting into the act, partnering with flex-space companies and launching their own brands. Governments, noting the benefits of entrepreneurs to their economies, are adding their backing. And multinationals, employing what is referred to as a hub-and-spoke or core/flex approach, now consider flexible spaces an integral piece of their permanent operations, either locating entirely in such real estate or shipping younger, more mobile departments to such “off-sites”.</p> <p>Taken together, it’s little surprise that JLL Research found flexible space stock across Asia-Pacific charting a compound annual growth rate from 2014 to 2017 of 35.7 percent (compared with 25.7 percent in the United States and 21.6 percent in Europe), and the total stock managed by major operators growing by 150 percent.</p> <div class="pull-quotes-container">Everyone is familiar with the dotcom-boom-era ping pong tables, in-house baristas, and—for the luckiest ducks—free beer. They’ve been joined by a sophisticated suite of options appealing to a more diverse, and increasingly corporate, clientele</div> <p>Thailand alone has seen coworking spaces grow from four in 2012 to 132 in 2017—a figure expected to increase by 25 percent in 2018, according to Phattarachai Taweewong, senior manager at Colliers. By 2030, JLL predicts flexible space to comprise 30 percent of corporate commercial property portfolios across Asia-Pacific.</p> <p>Everyone is familiar with the dotcom-boom-era ping pong tables, in-house baristas, and—for the luckiest ducks—free beer. Such mancave perks haven’t gone the way of AOL IMs in this generation, but they’ve been joined by a sophisticated suite of options appealing to a more diverse, and increasingly corporate, clientele. More than letting networking happen organically, flexible work firms are purposefully creating programming and designing interiors to facilitate interaction.</p> <p>Hubba, Thailand’s homegrown first coworking space, has four distinct outlets in Bangkok each catering to different fields, from tech start-ups to artisans and craftsmen. Hubba offers a spectrum of useful seminars (Powerpoint pointers, customer-journey mapping), as well as personalized assistance with management, staffing, and even design.</p> <p>Spaces, another popular player in Bangkok, prides itself on style and flexibility, letting clients reserve anything from a locker to an enclosed area for a team. Their Chamchuri Square location won Best Co Working Space Development at the Property Guru Thailand Property Awards 2018—just a little piece of the global coworking operator founded in Amsterdam in October 2008. “And then Lehman Brothers collapsed,” the founders write on their website. “We thought this would be the end of it for us. But actually, we fit right in that spirit of age. Because of the crisis, everybody was re-thinking work.”</p> <p><img alt="Artist’s impression of Spaces Chamchuri Square, winner of Best Co Working Space Development at the 13th PropertyGuru Thailand Property Awards" src="/documents/10204/0/SPACES-CHAMCHURI-SQUARE-%281%29-compressor+%281%29.jpg/bd56bf05-7b44-4009-9903-5c9fdcf5eaab?t=1546499897860" /></p> <p>The Executive Centre (TEC), a pioneering Hong Kong-based flexible space provider founded in 1994 by Paul Salnikow, who had been seeking short-term office space for a Japanese firm expanding to London, credits the GFC as a gamechanger. “Prior to the financial crisis, TEC interacted with multinationals only when they were opening an office in far-flung locations,” says Pebble Lee, global public relations manager. Today, in Hong Kong alone, 67 percent of their clients are multinationals, including Apple, Morgan Stanley, Facebook and Twitter.</p> <p>TEC now has 20,000 members in Grade A offices in CBDs across 30 markets, having added 23 locations in 2017, and is expecting 30 percent annual growth from 2018. Beyond such prestige fittings as height-adjustable standing desks by 9AM, Herman Miller chairs, and Timothy Oulton furnishing, TEC is about all about innovation, their Hong Kong headquarters a “test kitchen—a place to trial new design concepts, products, and technologies,” Lee says.</p> <p>However, potential barriers belie the stunning growth of coworking spaces in the region. “Corporate culture in Asia tends to be more hierarchical, and not always in sync with the casual, flexible atmosphere,” says JLL research. “According to one industry observer, ‘In many markets across Asia Pacific, space is a reflection of status.’ Large organizations place high value on retaining brand identity and culture. Such concerns, along with the need to protect trade secrets and secure IT infrastructure, must be addressed.”</p> <p>It’s why the most sophisticated players act not only as builders, gatekeepers, event-planners and consultants, but also full-time IT departments, and in the case of WeWork, corporate fit-out contractors and developer partners.</p> <p><img alt="The common areas at a WeWork co-working space in Sanlitun, Beijing" src="/documents/10204/0/20180522_WeWork_Sanlitun_-_Common_Areas-7-compressor.jpg/602f832b-9c5c-47ea-afd9-2ca967c54ca6?t=1546500194327" /></p> <p>And those developers are coming in hot. A handful of large landlords control the supply (in Singapore’s CBD, the 15 largest landlords control 75 percent of Grade A office buildings; in Hong Kong East, three landlords run 80 percent of office buildings), entering the flex-space market themselves. Swire in Hong Kong—which has created its own brand, Blueprint, and inked deals with WeWork and The Great Room—and Ascendas in Singapore, says JLL, have realized they “can add value to their buildings and maintain or even extend their relationships with tenants by offering a diverse portfolio of core and flex space.”</p> <p>Even hotels have followed suit, looking at their business centers as community lounges, particularly in cities not recognized as regional commercial capitals. In Yangon, Shangri-La Group has opened a branch of FlySpaces. The new Shangri-La Hotel, Colombo, has a gorgeous new space called Co-nnect, with pods, private offices, meeting rooms with smart boards for both hotel guests and residents of the capital looking for a prestigious address to conduct business.</p> <p><a href="http://property-report.com/detail/-/blogs/better-together-making-the-most-of-mixed-use-developmen-4" target="_blank"><strong>More: Making the most of mixed-use developments</strong></a></p> <p>While it’s easy to be cynical about the corporatisation of what was once considered a hippy-dippy industry, you might say global expansion has brought the coworking market full-circle. In a recent survey by TEC, members say they value their community as defined by connecting, networking, and collaboration. The firm will soon roll out a client portal, MyTEC, enabling members worldwide to connect directly, give advice, help grow their businesses, and maybe start new ones.</p> <p>The way they might have found common ground while chilling in hammocks in a wired-up beach shack. It may not be sand-between-the-toes, but it is pie-in-the-sky community-minded. And isn’t that the whole point?</p> <p><em>This article originally appeared in <a href="https://magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">Issue No. 151</a> of PropertyGuru Property Report Magazine</em></p>