Contributed by Jamie Moulton
The real estate market is emerging all around the world, and Asia is no exception. Asia's real estate market is showing a great resilience despite the last financial crisis, and it is currently on its way to compete with global real estate markets.
Here is a list of the top 7 Asian cities known for their growing real estate market.
1- Hong Kong
Hong Kong's housing market recorded a noticeable rise in capital values in last December that hasn't been witnessed in five years. This surge lifted the full-year growth to 15.8%, according to JLL's latest Hong Kong Property Market Monitor.
This rise is expected to continue all throughout 2018 where housing prices are expected to increase a further 10% this year if the market goes on the same pace.
What even makes Hong Kong's housing market on fire is the high market sentiment where sales in the government land and primary sales markets remain strong year-on-year.
2- Tokyo
Japan is one market that will always be attractive to international real estate investors for it is one of the most modern out cities in all of Asia. The market's high yields are one of the many reasons driving investors towards investing in Tokyo's real estate market.
The residential sector is one of the strongest sectors in Tokyo's real estate market since occupancy levels are relatively high and rents are almost stable.
Nowadays, Tokyo offers extremely profitable investment opportunities, and that is all because of Bank of Japan’s negative interest rate policy coupled with the relatively weak yen, which will make overseas investors gain substantial returns in Japan’s real estate market, according to Mandy Wong, Head of International Residential Property Services at JLL Hong Kong.
3- Taiwan
Taiwan's real estate market has been suffering a lot over the last couple of years. However, things have turned around as house prices are rising gradually and demand is surging, not to mention the gained activity in residential construction.
Recent figures showed that during the latest quarter (Q2, 2017), nationwide house prices rose by 1.48% and almost all of Taiwan's major cities witnessed a remarkable improvement in their real estate activities.
And based on government statistics, property transactions in Taiwan's major metropolitan areas (Taipei, New Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung) rose by 20% during the first six months of 2017 when compared to the same period in 2016, which indicates a remarkable growth in the market's overall performance.
4- Singapore
For so long now, Singapore's housing market has been driven by domestic buyers; however, foreign interest is expected to return to the real estate scene especially that now home prices are recovering after their last fall in 2013.
According to a survey by Bloomberg, Singapore's home prices witnessed a rise for the last two consecutive quarters and are expected to increase by about 5.5% this year, all of which indicated that the market is finally recovering.
It is safe to say that investor's confidence in Singapore's real estate market is on its way back especially after the jump recorded in home sales and aggressive bids for land by developers.
5- China
China's housing market is expected to run strong with no dramatic ups or downs anytime soon, all of which makes it one of Asia's stable markets. It is worth mentioning that in 2017, the sales of commercial buildings also topped 13 trillion yuan, registering an increase of 13.7% year-on-year.
A recent report by Centaline Property Agency showed that 73% of the listed real estate firms have good performance in 2017 and among the 82 firms, around 29 are expected to announce a 100% year-on-year surge in their profits.
According to Ouyang Jie, senior vice-president at real estate developer Future Land, he mentioned that commercial properties sales are expected to rise in core areas such as Beijing and Shanghai which makes them a valuable investment.
6- Bangkok
Bangkok's real estate market is expected to grow in 2018. Demands across the market witnessed an increase from domestic home buyers and expatriates alike.
Such influx of buyers especially foreign ones has encouraged big-name developers to launch a new supply that offers innovative amenities which focus more on experiences and future lifestyle.
Affordable units also are expected to enter the real estate market in 2018, all of which will drive buyers in the mid-range market segment to invest. And with the gigantic public transport changes and the mass transit routes happening in the city at the moment, the real estate sector in Bangkok will continue to see a huge demand.
7- Ho Chi Minh
Ho Chi Minh City is Vietnam’s largest and active cities with a population that is almost the same as New York City, all of which make the city invest heavily in infrastructure to accommodate the city's growing population.
It is expected that by the year 2020, the supply of luxury real estate in the city will have an additional 5,000 units.
According to CBRE’s “Real Estate Market Insights” report for 20187 third quarter, 88% of luxury units were sold, and prices increased by 8% year-over-year.
About the Contributor
"Jamie Moulton is a senior content curator at JustProperty.com, a leading real estate portal in the MENA region, headquartered in Dubai, UAE.
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