The Belt and Road Initiative in Southeast Asia takes shape, but what’s next?

Malaysian Prime Minister Mahathir Mohamad placed Belt and Road Initiative projects on hold after being elected in 2018

When Chinese President Xi Jinping officially launched the Belt and Road Initiative (BRI), he did so hoping the country’s major infrastructure investment would boost trade and stimulate economic growth on a worldwide scale. Southeast Asia was seen a natural benefactor of the project thanks to its close proximity to China, developing economies and the need for infrastructure improvement.

A report from credit ratings agency Fitch found USD900 billion in projects spread across 68 countries were either completed, underway or planned as part of the BRI, also known as One Belt, One Road, but the impact in Southeast Asia hasn’t been as greatly felt as some had initially hoped.

“BRI isn’t as big or grandiose as people think, especially in places like Southeast Asia where there is already a lot of competition among foreign investors,” Jason Chiang, Director at Royal HaskoningDHV, stated. “There are BRI projects in the region, but there are other countries also actively investing in infrastructure projects here such as Japan. The increased competition makes these projects less attractive.”

The BRI development strategy called for the Chinese government to invest in seaports, airports, high-speed rail lines and other infrastructure projects as well as industrial parks and economic zones. Most of these projects in which Beijing is involved with sees the Chinese government serve as a financing gap provider that supports funding for the global infrastructure projects similar to development banks.

Perhaps the highest profile BRI project in Southeast Asia is the high-speed rail line that could eventually connect Singapore to China with links to Vietnam and Myanmar.
Work on the rail link has already begun in Laos and Thailand with the Bangkok-Nakhon Ratchasima route
. However, progress in Malaysia halted when Mahathir Mohamad was elected Prime Minister and placed several infrastructure projects on hold.

In some cases, projects as part of the BRI have proceeded, but outside of the project’s funding sphere. An example of this is Thailand’s much-talked about high-speed rail line that will connect U-Tapao International Airport in Pattaya with Suvarnabhumi and Don Mueang international airports in Bangkok. The project, which finally green lit in November of last year, will not take on any Chinese government-backed financing.

Instead, a joint venture between Thailand’s CP Group and China Railway Construction Corp. as well as other partners will invest THB224 billion (USD7.4 billion) to complete the rail line.

PPP over Belt and Road Initiative financing

Rail lines have played a big part when it comes to the Belt and Road Initiative in Southeast Asia

That agreement is part of a shift in strategy from Southeast Asian countries that is seeing them move away from BRI financing and instead keying in on either entirely private sector support or, increasingly, public–private partnerships (PPPs) to get projects moving.

“Companies in the private sector are and will continue to be active investors abroad. The BRI can provide access to the various private and public infrastructure projects and help connect everything, but it is probably getting too much credit,” Chiang stated.

Nowhere is this more evident than in the Philippines where the government has shifted its focus away from BRI financed projects and turned to PPPs to progress with President Rodrigo Duterte’s “Build…Build…Build” infrastructure goals.

Chinese-funded BRI infrastructure projects, including a rapid-transit bus line linking Bonifacio Global City to Ninoy Aquino International Airport and two phases of a railway in Mindanao, have been cancelled by the Philippine government as work was not proceeding fast enough.

PPPs were initially avoided as part of “Build…Build…Build” because the government did not like the fact winning bidders had a certain degree of autonomy to increase fares and limit competition. However, they are not unheard of in the country with the Mactan-Cebu International Airport among the infrastructure projects developed under the PP model.

For the Philippine government, the key to progressing with PPPs will be ensuring they benefit the public and the private sector not simply the latter.

“Automatic rate increases, commitments of non-interference and non-compete clauses strip the government of its ability to require concessionaires to improve services, all of which have been detrimental to the public interest,” Vince Dizon, Presidential Adviser for Flagship Programs, said during a government press conference. “Under the Duterte administration, such disadvantageous provisions will not be allowed.”

Moving forward with BRI 2.0

A call for greater transparency was agreed upon during the Belt and Road Forum last year

All of the global projects show the clear focus of BRI. That’s trade. Improved overland transit and seaports make it easier for China to ship its goods to the growing markets of Southeast Asia while other projects provide the mainland with new opportunities, such as importing energy, that are seen as vital for the growth of the Chinese economy.

“Trade is what is driving BRI. The assets themselves aren’t as important for China,” Chiang pointed out. “The US and China aren’t fighting an infrastructure war. They are waging a trade war. Trade makes the difference and this is what ultimately is driving BRI.”

Of course, there is now a greater awareness from Southeast Asian countries that the BRI must be a two-way street that goes beyond cheap financing. With most Asian countries feeling the squeeze from the US-China trade war in some form or another, nearly all parties involved with the BRI understood that greater transparency is required.

This has led to the creation of BRI 2.0 with President Xi stressing the BRI will now proceed in a transparent way with zero tolerance for corruption. The hope is this will encourage a new wave of cooperation between ASEAN countries and China through different means of funding including PPPs, commercial funding and joint government investment funds.

A successful rollout of BRI 2.0 could extend well beyond the realm of infrastructure benefits and help boost entire economies throughout Southeast Asia.

“China’s ever-deepening engagement with Southeast Asia can deliver an economic boost that will ripple out across the region. Growth fostered by BRI has the potential to accelerate the expansion of the region’s middle class, increasingly changing the target of investment in manufacturing from exports to local consumption,”
David Liao, Chief Executive Officer and President of HSBC Bank (China), opined in a Nikkei Asia Review article
.

He continued, “But Southeast Asia should do its bit to benefit fully from these opportunities. The region will be more attractive to investors if it can restart the stalled ASEAN integration program begun more than a decade ago.”

During the Belt and Road Forum in Beijing, IMF Managing Director, Christine Lagarde, touched on what BRI 2.0 holds as well as offered some insights on what must be avoided in order for it to ultimately work for everyone.

“The BRI is clearly having an impact. From stimulating infrastructure investment to developing new global supply chains, some of the promises of BRI are being realized,” Lagarde explained. “At the same time, to be fully successful, the Belt and Road should only go where it is needed. I would add today that it should only go where it is sustainable, in all aspects. Fortunately, the Chinese government is already taking some steps to ensure this is the case.”


Belt and Road steers Chinese investors to Malaysian property

China’s Belt and Road initiative isn’t simply improving infrastructure in the 24 countries that make up the ambitious programme. Countries in Southeast Asia that are part of the Belt and Road, including Thailand, Malaysia, Vietnam, the Philippines and Indonesia, have all seen an influx of Chinese real estate investors.

Beijing has already invested USD 50 billion in the countries that make up the Belt and Road region. Southeast Asia may not have a large role, but its strategic location and proximity to the mainland mean it will be integral to the success of the project.

And while capital controls were supposed to dampen overseas real estate investment from China, leading Chinese property portal Juwai.com told
China
Daily
 the negative influence of capital controls has been, at least partially, offset by the positive influence of the Belt and Road initiative.

Belt and Road benefits these 3 ASEAN real estate markets

While most property markets in ASEAN have seen a boost in Chinese investors, there are three countries that stand out. Thailand, Malaysia and the Philippines have all seen an increase in Chinese interest since work on Belt and Road began.

Malaysia

The addition of Malaysia to the Belt and Road initiative was simply the cherry on top of the proverbial sundae for Chinese real estate investors. Research from Knight Frank showed that 35 percent of residential transactions conducted in the past five years were carried out by foreign buyers with Chinese investors accounting for the bulk of these.

According to Judy Ong, executive director of research and consultancy at Knight Frank Malaysia
, the country is attractive to mainland investors due Malaysia’s political stability and developed infrastructure as well as the pleasant lifestyle and environment provided. Meanwhile, the Malaysia My Second Home (MM2H) has made the country more attractive to retirees from China.

Thailand

Chinese interest in Thai property is nothing new. Mainland investors were responsible almost 30 percent of condominium purchases in 2017, according to CBRE figures. Additionally, Juwai reported the Kingdom was the third most searched for global property destination among its Chinese users in 2017.

See more:
China tops, but demand for Thai real estate on the rise globally

Interest from Chinese buyers isn’t limited to the Thai capital. Pattaya was the top location among Chinese investors while Chiang Mai was third with Bangkok sandwiched in between the two holiday spots. This isn’t surprising. Data from the Thai government showed nearly 12 million visitors came to the country last year, with resort areas being the most popular destinations.

With tourist arrivals from China booming and Belt and Road in full swing, not to mention
Alibaba now committed to investing in the Eastern Economic Corridor
, Chinese interest in Thai property shows no signs of slowing down.

Philippines

Thanks to thawing relations between Manila and Beijing, Chinese investment in the Philippines is rising with the Belt and Road initiative playing a factor in this. Of course, the surging Filipino economy has played its part in the increase as well.

“I think it’s because of the good relations between the Philippines and China. But it’s also because of a strong property market, the ability to come here and buy property at reasonable price and get attractive yields. I think the fundamentals of the economy and real estate are rock solid,” Santos Knight Frank chairman and CEO Rick Santos said earlier this year.

Read more:
Chinese and South Korean investors eye the Philippines

Filipino developers are already seeing an influx of Chinese buyers. SM Prime’s international condominium sales were up in 2017 with mainland investors accounting for 10 percent of this while nearly 50 percent of Ayala Land’s international sales last year were to the Chinese market,
Colliers reported
.


Benefits to buying a unit in an older condominium building

Buying a unit in an older condominium building can be a smart move in the right circumstances

Everyone likes the latest and greatest. From technology to cars, most people want what’s new. It is a trend you see quite a bit in real estate as well. Demand for new-build properties is usually strongest, but buying a unit in an older condominium building has benefits too.

It is important to understand these before starting your property search. In some cases, you may find that buying a unit in an older condominium building may actually suit your needs better. With that in mind, here are a few of the benefits.

Reason to consider buying a unit in an older condominium building

1) More value

There is a reason the newest iPhone is the most expensive one on the market. You’re paying a premium on the latest advancements. It’s the same for real estate. A condominium unit in a new-build development will almost always cost more on a per square metre basis than an older one in the same location.

This is usually due to the older property featuring a design and layout that aren’t as intuitive as more modern buildings. Additionally, an old unit may require more maintenance or need to be upgraded. These issues aren’t universal and you’ll need to conduct due diligence if you’re considering buying a unit in an older condominium building.

An important thing to consider here is value. While you may need to invest in making some renovations or improvements, the money you save from buying a cheaper unit in an older building allows you to budget for it. Additionally, you might even be able to afford a larger unit than you originally thought possible. You may not get all the bells and whistles of a modern condominium building, but the trade off could see you gain an extra 20+ square metres or an additional bedroom.

2) Customise your home

Buying a unit in an older condominium building gives you greater freedom to customise it. In most new developments, fittings, finishings and even furniture comes pre-equipped. For those who aren’t into design or don’t own furniture, this is great. But this is very restrictive if you enjoy picking out decorations and adding style to your home.

These restrictions don’t usually exist when buying a unit in an older condominium building. You are free to style it as you see fit. The size and scope of the renovations may be limited by the juristic board of the building, so be sure to check with them first before you start making plans.

3) No surprises

The most underrated aspect of buying a unit in an older condominium building is the fact you can see it with your own eyes and explore it in person. If you’re thinking about buying a new, off-plan condominium, you can only see a show unit and look at 3D renderings.

It’s not unheard for property buyers to let their imagination run wild when purchasing a new condominium unit only to be disappointed when it is finally turned over because it doesn’t meet their lofty daydreams. On the other hand, what you see is what you get when buying a unit in an older condominium building.

Conclusion

For some property buyers, acquiring a unit in a new building makes sense. However, buying a unit in an older condominium building shouldn’t be dismissed entirely. That’s especially true if location and space are important factors since you may find you get more bang for your buck with an older property.


What are the benefits of dual citizenship?

Dual citizenship in a country like Cyprus comes with many advantages

The article comes to us from Malvern Consulting, a leader in customized and personalized solutions for high net-worth individuals.
Click here for more information on how they can assist you
.

A second passport, if correctly chosen, can provide a whole new world of opportunities. Your second passport can be a key to living the lifestyle you always dreamed of along with the possibility of becoming a truly global citizen with no boundaries.  In our view, dual citizenship serves as both an insurance policy and a method of unlocking new opportunities. Receiving dual citizenship can also open up other doors for you, such as easier access to overseas markets.

If you’re considering dual citizenship, but aren’t sure if it’s for you, take a look at some of the ways you can benefit from a second passport, especially one from a European Union country like Cyprus:

A SECOND CITIZENSHIP GIVES YOU A SECOND RESIDENCE

One of the most obvious – but underrated – benefits of receiving dual citizenship is that it gives you guaranteed residence in that country. If you have citizenship in a particular country, then you have the freedom to live there as you choose. You don’t need to worry about residency requirements or visas to get in.

Dual citizenship also ensures that you have somewhere to go if you need to get out of your home country. We all love our home country, but having a fail-safe, back-up plan in case you need to leave your country of residence is a good idea.

If you choose to become dual citizen of an EU country like Cyprus, then you cannot only
permanently
 live in Cyprus as well as
ANY of the 27 EU countries
 including Switzerland, Italy, France, Germany and the other EU members. In our view, this ability to treat the entire European Union as your second residence if probably the strongest benefit of a top-tier second passport.

GETTING DUAL CITIZENSHIP CAN HELP REDUCE YOUR TAXES

Many people opt for a dual citizenship because it helps them significantly reduce their tax bills. In countries such as Cyprus, there are ZERO taxes for people not domiciled in the country for income that has been generated outside of the country. For example, if a Thai citizen takes Cypriot citizenship and does not live more than 182 days in Cyprus during a one-year period, then the dividends and profits earned outside of Cyprus remain tax free in the country.

In many cases, it may also make sense for people to move their business center for trading to a low-tax, EU country like Cyprus. For example, if a business owner from the Philippines sets up a company in Cyprus with a maximum corporate tax rate of 12.5 percent on profits and conducts his primary operations from this EU base, he or she may be in a position to significantly save on his tax bill as this tax rate may be significantly lower than that of the home country. Additionally, Cyprus has no inheritance, wealth, giﬅ and immovable property taxes. Dual citizenship therefore serves as an insurance policy for your tax plan. It gives you an exit strategy in case of difficulties and it allows you to cut ties when necessary.

A SECOND PASSPORT CAN MAKE TRAVELING EASIER

Applying for visas and waiting can be very frustrating, especially when you need to travel for business in a hurry or for an emergency. This is where dual citizenship can make a huge difference in your lifestyle. However, you can enjoy visa free travel to more than 155 countries, including of course the right to permanently stay in any of the 27 EU countries, with a passport from Cyprus.

GETTING DUAL CITIZENSHIP GRANTS YOU ACCESS TO NEW SOCIAL BENEFITS

Even if you’re already successful, the stability offered by countries with highly developed social services can be quite desirable. If you or your children move to a country in the EU, such as Cyprus, you can enjoy low-cost health care, send your kids to school in any EU country inexpensively and enjoy pension benefits when you retire. While these benefits may not seem significant today, we do not know what the future holds for our future generations. By ensuring a European Legacy via a second EU passport, you can guarantee the best range of possibilities for your children and their generations.

DUAL CITIZENSHIP CAN MEAN NEW BUSINESS OPPORTUNITIES

Finally, your second passport can give you access to new markets and business opportunities. As a citizen of a particular country, you can invest freely in that country, and may have an easier time investing in neighboring countries as well. As a citizen of an EU country like Cyprus, you have full access to the European Union for goods and services as well as free movement of capital without any questions or complications. This benefit can enrich your business and open up the world of opportunities for you.

Therefore, if you want to legally reduce your taxes, take advantage of international business opportunities and live a freer lifestyle, you should start to look into getting a second passport. As a first step you may contact us at Malvern Consulting Ltd. and we can embark on this journey together so that you may realize your dreams in the shortest possible time with the least amount of effort.

Click here to find out more information.


Serviced apartments provide more space than hotel rooms while being more flexible on contract length than condos

Somewhere between condominiums and hotels is the humble serviced apartment. While these have been around for a long time, this type of residential real estate can be overlooked by those searching for a place to stay in a new city.

However, serviced apartments are undoubtedly a good option for those who find themselves away from home for a period of 1-5 months. Being in a hotel for that long is hardly ideal while most landlords won’t consider condo rentals of less than six months.

This isn’t to say they are for everyone. But the benefits of staying at a serviced apartment are worth considering should you need a place to rent for a few months.

Related:

Tips to help get your security deposit back when moving out

What are the benefits of staying at a serviced apartment?

Space

Standard hotel rooms can feel cramped after a few days while larger ones or suites are going to cost a lot. Of all the benefits of staying at a serviced apartment, the extra space they afford is the one people appreciate most.

Daily living essentials

Most serviced apartments feature a kitchen, washing machine and other daily living essentials that help you lead a normal life. It is not as good as being at home, but at least you know the basics are covered.

Truly fully furnished

In the world of condos, fully furnished can mean any number of different things. However, you will almost always find yourself needing to go out and buy something that is likely to be discarded once it’s time to go home. Serviced apartments ensure you have everything, including little items like cutlery, during your stay.

Service

As the name suggests, serviced apartments come with some services. These differ but things like housekeeping and even breakfast are usually offered. The frequency of the former does vary with weekly now being standard at most properties.

Are you looking for a serviced apartment?
Start your search here on Dot Property
!


Berlin: Facts behind the hype

The German city of Berlin has come up in several conversations recently. Many investors here in Thailand have recognised how it has become a ‘hotspot’ for the world this year. Let’s look at the reasons why?

Rewind some 25 years. The whole world watched in wonder as the first pieces of the Berlin wall came down and the broken city began a long healing process to make it whole once more.

Now, no longer content to view this vibrant city from afar it seems the world has decided to move to Berlin.

The Berlin senate revealed during the summer that the city’s growth is double the rate that city planners had expected, and more importantly for property investors, and prepared for.

Berlin’s population was expected to swell by 250,000 people between 2011 and 2030. Now city planners believe that number will be added by 2019. In 2014 alone the population grew by 44,700.

City Development Senator Andreas Geisel has described the growth as “a great blessing”, but it has also put pressure on infrastructure, with the need for housing increasingly sharply as a result.

For owners of residential property in Berlin, the city’s newfound popularity has led to some interesting developments.
CBRE’s Global living: A city by city guide
 reported that average values for apartment buildings rose by 21 percent in a single year. Rents have also shot up by 5.7 percent over the past year (compared with 3.6 percent nationally).

Ray Withers, the Chief Executive Officer of specialist property investment company Property Frontiers, which is offering high specification buy-to-let apartments in the city at Stadtpark Steglitz from €153,670, commented: “We’re seeing some rapid shifts in Berlin’s property market after almost two decades of very little activity.

“It’s an exciting time to be part of the market there and property investors around the world are looking to Berlin as one of Europe’s top residential real estate investment destinations. Berlin looks set to be one of Europe’s most dominant cities during 2016 so far as residential investment is concerned.”

As well as a vibrant arts scene and rapidly growing reputation as Europe’s hottest start-up hub, Berlin offers a low cost of living compared to many European cities.

Rents are less than a quarter of the price they are in London: around £405 in Berlin compared to £2,080 in the English capital, according to CBRE. At the same time, the city’s economy is growing (CBRE cites projected growth of 2.6 percent this year) at a strong and sustainable pace.

With 81.2 percent of the city’s population opting to rent their property (compared with 51.3 percent nationally), Berlin arguably still represents a huge opportunity for buy-to-let investors looking to pick up a residential investment in a European hotspot.


Sometimes less is more when it comes to Christmas decorations in a small space

The best Christmas decoration ideas for small spaces are designed to help you get into the holiday spirit without it consuming your condominium unit or small house entirely. It is possible to find the right balance of yuletide joy and home, but it does require some creative thinking.

Perhaps the most common mistake people make is buying Christmas decorations before planning on how they will be placed in the home. Like most interior décor in small residences, it is important to plan for the holidays in order to maximize available space.

It is possible to spread holiday cheer in your condominium unit without having it take over entirely by following the best Christmas decoration ideas for small spaces.

4 of the best Christmas decoration ideas for small spaces

1) Non-traditional Christmas tree (AKA Wall Trees)

Unfortunately, Christmas trees are not designed for living in a small space. Their round form can be hard to accommodate if you want something taller than a few inches. One smart alternative is a non-traditional Christmas tree. Also known as a wall tree, this is where you decorate a wall with lights and ornaments in the shape of a tree. This 2D version is a great way to save space while ensuring holiday décor doesn’t overrun your residence.

2) Define your colors

Red and green are the traditional colors of Christmas, but when you start adding lights and other decorations, it can become a visual cacophony. One of the best Christmas decoration ideas for small spaces is to keep your color scheme simple. A lot of people opt for white with red and green accents because it provides that holiday feel without radically altering their home.

3) Limit your lights

Christmas lights are important, but don’t feel obligated to use the full string, especially if it ends up zig-zagging through your entire home. Pick a confined area for your holiday lights and stick to it.

4) Don’t forget the wreaths

A wreath on the outside of your door is a great way to create yuletide joy every time you come home. You can add one or two on interior doors as well for a little extra flair.


The best condominium rental yields in Asia

Real estate in Southeast Asia remains one of the preferred vehicles for global investors. A growing middle class, surging tourist arrivals and solid economic numbers are all reasons why the region has seen an influx of property investment in the past few years.

Investors have been particularly impressed with condominium rental yields in some of Asia’s emerging cities. This doesn’t mean these markets are a sure thing. But they do provide investors with an opportunity for a higher return on investment than currently available in “safe haven” markets such as Singapore or London.

Read More:

6 ways to improve your rental yield

Here are a few of the cities in Southeast Asia with the best condo rental yields:

Jakarta

It can be difficult for overseas investors to purchase a condominium in Indonesia.
The process is complex and the regulations and restrictions are murky at best
. At the moment, foreigners can buy and own property for a period of 30 years. This can be extended up to 70 years and there is hope the government opens this up even further. Even with these restrictions in place, there are benefits for those who navigate this cumbersome challenge.

Rental yields for condominiums can reach up to nine percent in some locations around Jakarta with strong domestic demand leading to rising prices. Research from Cushman & Wakefield found that the rental market and serviced apartment market continues to grow in the capital city.

Neighbourhood in demand: South Jakarta

Demand for rentals in South Jakarta is strong

Having been popular with expatriates for decades
, South Jakarta features a robust rental market with strong fundamentals. Research from Colliers International Indonesia found more expatriates renting houses in South Jakarta during the second half of 2017 with the activity found throughout the area. Additionally, more domestic renters have begun moving into this part of Jakarta.

Jakarta condos for sale

Bangkok

International investors are already familiar with the Thai capital as buyers from Hong Kong, China and Singapore among the most active. JLL noted that rental yields at luxury condominiums in Bangkok’s CBD are shrinking, currently averaging around four percent, but remain impressive in fringe areas connected to mass transit lines.

Projected yields at projects like Niche MONO Sukhumvit Bearing are higher than what’s available in the Bangkok CBD

According to Nexus Property, condominium rental yields for units along Ratchadaphisek Road between Ratchada and Rama IX roads come in at more than 5.5 percent annually while select projects in Bang Na have also surpassed this threshold. With more mass transit lines already under construction across Bangkok, this could unlock the real estate potential of several more neighbourhoods.

Neighbourhood in demand: Bearing

While it may no longer be the last stop on the BTS Sukhumvit Line, it is blooming into an up-and-coming destination. Similar to On Nut a few year’s back, the potential of Bearing is being realised by savvy investors while the area is built up. For example, units at Niche MONO Sukhumvit Bearing from Sena Development and its Japanese partner Hankyu Realty were quickly booked shortly after launching in 2017.

Bearing condos for sale

Manila

No list about condominium rental yields would be complete without Manila where they sit between six and nine percent depending on the location, according to property experts. Among the most exciting locations are Pasay and Parañaque which are both home to large shopping malls, casinos and resorts. Overseas interest in Manila real estate is expected to increase in 2018.

“I think it’s because of the good relations between the Philippines and China. But it’s also because of a strong property market—ability to come here and buy property at reasonable price and get attractive yields. I think the fundamentals of the economy and real estate are rock solid,”
Santos Knight Frank chairman and CEO Rick Santos explained during a press conference
.

Neighbourhood in demand: Mandaluyong

DMCI Homes’ Flair Towers is one of many new developments in Mandaluyong

Known as the “Tiger City of the Philippines”,
Mandaluyong has grown mightily this decade
. It is now home to several world-class shopping centres along with EDSA Central and Pioneer, two emerging business districts. This area is home to several BPO companies which has propelled demand for rental properties. The condominium rental yields at some projects is as high as ten percent.

Mandaluyong condos for sale


These are the best developers in the Philippines

SMDC won Best Developer Metro Manila in addition to several other honors

This article on the best developers in the Philippines appeared in the most recent issue of Dot Property Magazine.
Click here to read it
!

From North Luzon down to Mindanao and everywhere in between, the developer winners at the Dot Property Philippines Awards 2021 were able to make significant progress in the face of adversity. The pandemic disrupted the real estate market in many far-reaching ways.

However, homebuilders adapted quickly to these rapidly changing trends through innovation. It was no easy feat and the efforts of this year’s class of winners has gone beyond expectations.

SM Development Corporation

Best Developer Metro Manila

Best Developer Visayas

SMDC is known as one of the best developers in the Philippines

In Metro Manila, SMDC is behind a wide range of exciting residential developments that cater to the city’s diverse population. The key for the developer has been keeping up with the constantly changing trends found in Metro Manila. Its work in 2021 was recognized with the Best Developer Metro Manila award.

“SMDC is always mindful of the changing landscape in Metro Manila. We always like keeping out ear to the ground so that we understand the trends as well as what the buyers’ tastes, needs and financial capabilities,” Jose Mari Banzon, SMDC President, said. “Because of that, our projects are always evolving.”

That wasn’t the only developer honor for SMDC at the Dot Property Philippines Awards 2021. The firm was also presented with Best Developer Visayas. Despite being a relatively new entrant into the market, SMDC understood what the people here wanted and delivered that.

“We discovered that the people in Visayas are just as sophisticated and just as discerning as their counterparts in Metro Manila. We were able to take the same luxury, same affordability and same design features that make our Metro Manila projects successful and offer them in Visayas,” Banzon stated.

Related:

SMDC hailed for its Corporate Social Responsibility efforts

Filinvest Land Inc.

Best Developer Mindanao

Best Developer North Luzon

Filinvest Land landed two developer awards last year

Filinvest Land Inc. has achieved a great deal of success throughout the Philippines with some of its most notable work coming beyond Metro Manila. Mindanao is a growing region and has become an economic success during the past decade. That has created a huge demand for modern housing with Filinvest Land helping meet this need with high-quality residences equipped for the present and future.

The homebuilder’s contributions here saw it win Best Developer Mindanao at the Dot Property Philippines Awards 2021. However, that was not the only developer award for Filinvest Land who were tabbed as Best Developer North Luzon as well. These achievements are something it is extremely proud of.

“Wherever we are, we carryover the same principles of creating green and sustainable developments for our homeowners. In these areas, we are building on our previous successes. This is also our way of reaching out to our fellow Filipinos and helping them own their own homes as our ethos at Filinvest is building the Filipino dream,” Tristaneil Las Marias, Senior Vice President at Filinvest Land Inc., noted.

Read More:

Filinvest finds partner to assist with its proptech innovation efforts

Grand Land Inc.

Best Developer Cebu

Tina Pestano, Grand Land VP Sales and Marketing, shows off the firm’s success

Grand Land has been a fixture at the Dot Property Philippines Awards having won in 2017, 2018, 2019 and now 2021. When it comes to the Cebu real estate market, the firm is a local homebuilder who deeply understands and cares about both end users and investors.

Using its local knowledge, the developer creates projects that have the right blend of residential spaces, retail areas, amenities and more to ensure the needs of both groups are met. Winning Best Developer Cebu at the Dot Property Philippines Awards 2021 is confirmation once again that no one understands the market quite like Grand Land.

“For the past several years, we are proud to say most of our projects have been nominated and won at the Dot Property Philippines Awards. Moreover, Grand Land is one of the fastest growing developers in the region. We greatly appreciate the confidence in our company,” Tina Pestano, Grand Land VP Sales and Marketing, explained.


Best ever year for PropNex

Despite the challenges of a muted Singapore property market, real estate firm PropNex Realty yesterday (Wednesday) announced record gross commissions collected of more than S$ 200 million during 2015.

Transaction volumes also crossed a major milestone – the 40,000 mark. What the firm described as being exceptional results reflected the positive operating environment and the ongoing performance improvements which was implemented at the start of 2015. The company added that it is expected to do well during 2016.

Commenting on the results, Chief Executive Officer, Ismail Gafoor, (pictured) said: “Our people delivered PropNex’s biggest year ever, thanks to our most innovative technology products and relentless pursuit of skills enhancement. Revenue growth of the company accelerated to produce record results, and our transaction volumes were up 22 percent from 2014 – despite the challenging market conditions.

“The company is committed to continuously earn the trust of our customers, employees and associates. I’m proud of what we accomplished together, running a reliable real estate agency and making the right moves to deliver greater value.”

In a statement PropNex said that, evidently, the Singapore government’s plan to lower demand is working; and property prices are now on a downtrend. In addition, there is also a huge amount of supply 60,000 units in the pipeline and a record 26,500 vacant units that are entering the market and to make matters worse,

Interest rates are set to increase further. Against such a backdrop, we think a pre-emptive calibration of the measures rather than post-corrective actions would be a better way to go in achieving a stable and sustainable property market; this is especially so as we have a home ownership rate of 90 percent in Singapore.

As such, we are of the view that a large correction in property prices is not a desirable outcome for most people.

In coming up with these recommendations, we have been mindful of the macroeconomic concerns and the overall objectives of the government’s aim to achieve a stable and sustainable property market. We also took reference from the recently published ‘Financial Stability Review’ (November 2015), by the Monetary Authority of Singapore.

In our recommendations we proposed for some to be retained with no changes, and some calibrations to certain measures to better address concerns which we have heard from the ground. The full proposal was submitted to the relevant Ministries this week.

With the right calibrations; whilst retaining the key fundamentals of the objectives of the cooling measures, we believe that there will not be a sudden rebound in both transactions and prices.

PropNex will also be continuing the Consumer Empowerment Seminar (CES), with the first to be held on April 9, 2016, at HDB Hub auditorium. Through this, it hopes to empower Singapore consumers to make sound property investment decisions. The CES attracted more than 30,000 attendees in the last three years – who benefited with a deeper understanding of real estate in Singapore.

“CESs are a key part of how we connect with consumers in order to help them make informed decisions on real estate investments. We seek to present the latest insights from our research with salespersons, landlords, buyers and tenants, and discuss wider economic and political housing issues that can further reinforce their knowledge.

“As Singapore’s leading real estate agency, it is up to us to pass on our extensive research knowledge and property know-hows to empower consumers so that they can realise their property aspirations,” concluded Ismail.


Where are the best holiday decorations in Southeast Asia?

Photo /TAT -CentralWorld in Bangkok always has one of the best holiday decorations in Southeast Asia

The holiday season is winding down, but it’s not too late to see the lights and designs. The best holiday decorations in Southeast Asia are usually, but not always, found in and around major shopping areas. Setting aside the obvious ulterior motives of the retail industry, the setups are usually spectacular and can rival what you would find just about anywhere else in the world.

Of course, if you want to see the best holiday decorations in Southeast Asia, you are going to need to act fast. These will likely start coming down in early January to be replaced with equally as impressive Chinese New Year designs.

In search of the best holiday decorations in Southeast Asia

Singapore

Photo / Visit Singapore – Gardens by the Bay

The first spot most people head to when checking out holiday decorations in Singapore is
Orchard Road
. The setup is always great, but it’s not the only place where you will find the Christmas spirit. Gardens by the Bay has been going all out during the holiday season and boasts one of the most elaborate setups out there. In fact, it just may stake a claim to having the overall best holiday decorations in Southeast Asia.

Metro Manila

Photo / Per-Andre Hoffmann – Ayala Triangle Gardens

Those in Metro Manila are probably sick of holiday decorations by now as the lights and Santa figurines have been up since August. Or at least that is what it feels like. The country loves to start celebrating early, but if you’re still feeling festive, there is time to see some more holiday decorations. One of the best spots is Ayala Triangle Gardens in
Makati
 where an ornate light display draws visitors from all over the city.

Bangkok

Since completing a major renovation in 2007, CentralWorld in downtown Bangkok has always gone big with its Christmas scenes. This year, its setup features a massive Christmas tree and more than two million lights, although we aren’t counting.
The mall is also holding a number of holiday-themed events between now and the end of the year
.

Photo / ICONSIAM – A look at ICONSIAM’s riverside promenade decorated for the holidays

ICONSIAM is another Bangkok retail centre with an extravagant holiday decoration setup. Forget about decking the halls, ICONSIAM has decked its entire riverfront promenade with a breathtaking display. A stroll here has the feel of a proper winter wonderland (weather not included).

Hanoi

Photo / Zingvn – St Joseph’s Cathedral

While holiday decorations are not as widespread in Vietnam as they are in other parts of Southeast Asia, there are a few cool spots worth checking out. In Hanoi, St Joseph’s Cathedral always has a great looking display celebrating the holiday season. The church, which was built in the 1880s, features Gothic Revival architecture that makes it all that more unique when decorated.

Petaling Jaya

Photo / akamaihd.net – 1 Utama Shopping Centre

It will be no surprise to find Malaysia’s largest shopping mall on this list. 1 Utama Shopping Centre in
Petaling Jaya
 doesn’t spare any expense in creating an impressive holiday display. The mall changes the theme each year ensuring a new and fresh experience for visitors.


The Best Luxury Condo Development in the Philippines is…

When RLC Residences revealed they would be working with legendary hospitality firm Westin on a branded residences project in Metro Manila, there was a lot of excitement to see what the pair would come up. The results have surpassed the expectations of most people.

The Residences at The Westin Manila Sonata Place is the best luxury condo development in the Philippines. This isn’t simply blustery marketing speak. The project was presented with the award for Best Luxury Condo Development at the
Dot Property Philippines Awards 2021
.

As the first Westin-branded residences in Southeast Asia and one of the first branded residences to be launched in the Philippines,
The Residences at The Westin Manila Sonata Place
 was tasked with elevating the luxury residential experience in the country.

For RLC Residences, that process starts with empowering people to live their life in perfect balance and be at their best. The Residences at The Westin Manila Sonata Place offers unmatched comfort and convenience that allows residents to focus on family, happiness and the things that truly matter to them.

In order to accomplish this and create the best luxury condo development in the Philippines, the partners focused on incorporating the hotelier’s six pillars of wellness.

The ‘Sleep Well’ pillar sees suites equipped with the signature Westin Heavenly® Bed complete with plush pillows and a custom-pillow top mattress that means your rest is always the best.

Rejuvenation is another important aspect of home life. It is vital to have a place where you can recharge. This is the ‘Feel Well’ pillar, which starts with mood-lifting botanicals and a soothing White Tea scent as you make your way to your home. The Heavenly Spa by Westin™ is also made available for you, along with a calming shower that you can enjoy inside your home through the Westin Heavenly Bath™.

Of course, work and play remain two of the biggest aspects of our daily lives and are covered under the next two pillars.

‘Work Well’ focuses on taking care of business. From a rentable workspace known as The Tangent™ at Westin to the business lounge and functions rooms, it’s always easy to stay on top of work.

On the other hand, ‘Play Well’ is all about those moments away from the office. The property’s 5-star leisure amenities place fun at your fingertips. You can unwind in the Game Room, have a round or two in the Golf Simulation Room or watch a movie in the Private Theater. These and more leisure facilities are made available exclusively for homeowners of this development.

The ‘Move Well’ pillar supports an active lifestyle. You can stay in peak physical condition by utilizing the Westin WORKOUT™ Fitness Studio and the RunWESTIN Concierge™. The property also has its own Move Studio – the perfect place for your yoga and pilates sessions.

The Residence at The Westin Manila Sonata Place also takes into life the ‘Eat Well’ pillar, thanks to the healthy food and beverages prepared by the SuperFoodsRx Menu™ and The Westin Fresh by the Juicery. ‘Eat Well’ even extends to children who can savor delicious meals made just for them by SuperChefs™.

This level of comfort and convenience ensures The Residence at The Westin Manila Sonata Place stands out. RLC Residences vision for the project was certainly ambitious, but by winning Best Luxury Condo Development at the Dot Property Philippines Awards 2021, it has been validated at the highest levels.

This was one of three awards presented to RLC Residences last year. Most notably, the homebuilder took home Developer of the Year, the event’s highest honor.

“We are honored and thrilled to be receiving the Developer of the Year Award. This award is affirmation that we are achieving and succeeding in our goal. It is also going to push us to keep doing better. Being nominated is an honor and winning is a double honor,” John Richard Sotelo, Senior VP & Business Unit General Manager, Residential Division at Robinsons Land, proclaimed.

Related:

Dot Property Philippines Awards 2021 celebrates the real estate sector’s resilience


Where are the best places for Asian expats to live in Southeast Asia?

Singapore remains the best place in the world for Asian expats according to a recent survey

Many East Asian expats call Southeast Asia home. A significant number of companies from China, Japan, South Korea and Hong Kong have set up shop in the region bringing with them local staff to help with operations. However, not all locations for these expats are equal in terms of liveability.

A recent survey from ECA International, an international knowledge, information and technology provider, ranked 480 locations around the world based on the quality of living conditions for East Asian expats. Some of the factors used for the survey include climate, availability of health services, infrastructure, personal safety and political tensions.

In a surprise to no one who follows these types of surveys,
Singapore
 was named the best place in the world for Asian expats to live. This was the 14
th
year in a row the city-state finished on top of ECA’s list.

“Unsurprisingly for many, Singapore once again remains the most liveable location in the world for expats relocating from elsewhere in East Asia.” Lee Quane, Regional Director – Asia at ECA International, explained in a press release. “A number of factors make Singapore the ideal location; such as access to great facilities, low crime rates, good quality healthcare and education, as well as a large expat population already living in Singapore. Although many cities in Asia offer similar benefits to overseas workers, Singapore remains the top location and doesn’t look like dropping in the rankings any time soon.”

See more:

South Jakarta the preferred spot for expats in Jakarta

Asian expats enjoy better conditions in Malaysia and Thailand

They may not dislodge Singapore anytime soon, but cities in
Malaysia
 and
Thailand
 were becoming more liveable for Asian expats. The survey noted that most cities in the two countries improved last year with Bangkok being ranked in 89th place. In Malaysia, both George Town and Kuala Lumpur broke into the top 100, rising to 97th and 98th place respectively.

“Both Thailand and Malaysia continue to develop and improve their infrastructure which has seen their liveability scores steadily improve over recent years,” Quane pointed out. “In particular, advances in road and transport infrastructure have improved access to areas in these countries that were once considered far more remote.”

The one thing Thai and Malaysian cities have going for them is lower cost of living. While Singapore may have been voted as the best place for Asian expats to live, it is also the 18th most expensive location in the world for expats, according to ECA. This pales in comparison to Bangkok, which finished 90
th
, and Kuala Lumpur, which placed 188
th
in the same rankings.

See more:

Why do expats choose to retire in the Philippines?

“Over the past five years Bangkok has climbed over 80 places and the Thai capital now sits in 90th place in our cost of living rankings,” Quane reported. “The Thai baht has strengthened in recent years as the economy has expanded and the political landscape has stabilised.”

He continued, “Although the Malaysian cities in our survey have all seen significant rises of over twenty places each, Malaysia remains one of the cheapest locations in Asia for overseas workers.”


These are the best real estate agencies, service firms and property management businesses in Vietnam

Dat Xahn Mien Bac is honored as one of Vietnam’s Best Real Estate Agencies 2022

The services sector is playing an increasingly important role in Vietnam. As the country’s real estate industry has grown, these firms have become vital and not only when it comes to buying and selling homes. They are providing aftersales support, empowering investors, sharing knowledge and ensuring a seamless experience for everyone.

Real estate agencies, service firms, management businesses and more are laying the groundwork for buyers, sellers, residents and everyone else to participate in property. This year’s Dot Property Vietnam Awards winners have led these efforts through hard work, care and a desire to improve the industry.

Vietnam’s Best Real Estate Agencies 2022

Dat Xanh Mien Bac

PropertyX Joint Stock Company

Dat Xanh Mien Nam Investment and Services Joint Stock Company

Southern Vietnam’s Best Real Estate Agencies 2022

DXMD Vietnam

Vietnam’s Best Real Estate Consultancy Firm 2022

WeLand Real Estate

NewstarHomes Investment Group Joint Stock Company

V-Land Vietnam Real Estate Trading And Investment Joint Stock Company

Vietnam’s Best Property Communications Firm 2022

ODE Group

Vietnam’s Best Property Media Consultancy Firms 2022

Hoacom Media Group JSC

Vietnam’s Best Real Estate Service Firms 2022

TNL Lease Property And Investment Joint Stock Company

Vietnam’s Best Property Management Businesses 2022

Savista Holdings

TNR Property Investment And Real Estate Management Joint Stock Company

Read More:

Dot Property Vietnam Awards 2022 Honors 48 Winners As Resiliency, Recovery and Sustainability Take Center Stage


Here are the best real estate projects in the Philippines

This article on the best real estate projects in the Philippines appeared in the most recent issue of Dot Property Magazine.
Click here to read it
!

The most luxurious, affordable and green projects were just a few of the development to be recognized at the Dot Property Philippines Awards 2021. Developers are now focused on meeting demand for housing from the public but don’t want people to sacrifice quality when looking for a new home.

This year’s project winners have proven to be the absolute best at what they do. From offering a lifestyle experience suited to modern individuals to providing outstanding investment potential, here are the developments that shined in 2021.

These are the best real estate projects in the Philippines

Best Luxury Condo Development

The Residences at The Westin Manila Sonata Place

The Residences at The Westin Manila Sonata Place are the first Westin-branded residences in Southeast Asia. This project features more than simply a name as the upscale condominium contains Westin’s Six Pillars of Wellness in addition to several other notable amenities. The development empowers residents to live their best life by elevating at-home wellness in the Philippines.

Read More:

Everything you need to know about the Best Luxury Condo Development in the Philippines

Best Lifestyle Condo Development

Vine Residences

Best Lifestyle Condo Development

The lifestyle at Vine Residences offers residents both an outstanding location and fantastic amenities. For starters, the popular SM City Novaliches shopping mall is steps away from the project. Meanwhile, two separate park areas around the condominium provide a direct connection to nature.

Related:

Vine Residences makes work/life balance possible in Quezon City

Best Serviced Apartment Philippines

Dusit D2 Residences

Best Serviced Apartment Philippines

Dusit D2 Residences has been a welcome addition to Cebu, providing much needed service residences in this growing tourism and business hub. The project combines contemporary design and connectivity to ensure the needs of modern residents are met. Situated close to the city’s business district, Dusit D2 Residences boasts an all-day dining restaurant, gym, pool and meeting rooms.

Best Mid-Rise Condo Development

Sierra Valley Gardens

Best Mid-Rise Condo Development

Sierra Valley Gardens is truly unique for a mid-range condo development in that large green spaces have been made available. Despite being a condominium, there is plenty of room for families along with ample amenities. And as part of the large, master planned Sierra Valley mixed-use estate, a premium has been placed on convenience.

Best Affordable Condo Development

Charm Residences

Best Affordable Condo Development

With its unwavering commitment to quality, Charm Residences ensures the best life has to offer is within reach. The garden-inspired residential development contains lush, green surroundings in addition to 5-star amenities. Units are specially designed while high-end materials were utilized. The end result is a luxury residence without a luxury price tag.

Best Mid Range Housing Development

City Homes Minglanilla

Best Mid Range Housing Development

City Homes Minglanilla is a horizontal condominium project offering people a different type of residential lifestyle in Cebu that is well-suited for the “New Normal”. Spread across two hectares, developer Grand Land worked hard to create a low-density experience that allowed residents with the space required to breathe and grow. Meanwhile, homes have been smartly crafted to meet the requirements of modern homeowners.

Best Condo Interior Design

Green 2 Residences

Best Condo Interior Design

The interior design found at Green 2 Residences stands out. Developer SMDC knew that its location near several prominent universities meant the project needed to be different. To that end, interiors throughout the development have been tailored to be ideal spaces for students. The design has come to life as a perfect place to study, play and rest in comfort.

Best Investment Property Metro Manila

Bloom Residences

Best Investment Property Metro Manila

Bloom Residences was designed as a haven for urbanites and young families who live active and healthy lives. Amenities cater to this group’s unique needs to provide a dynamic living experience all year round. The large units at Bloom Residences also support this lifestyle and ensure space is never an issue.

Best Investment Property South Luzon

Las Brisas at Tierra Del Sol

Best Investment Property South Luzon

South Luzon is an up-and-coming destination as more people look to escape the hustle and bustle of the city. As an investment property, Las Brisas at Tierra Del Sol benefits from an accessible location that will be bolstered by continued infrastructure development. Of course, there is a lot more to the project than a good location. Its beautiful surroundings, low-density living and famous cool breeze ensure it is the region’s best.

Best Investment Property Cebu

Grand Residences Cebu

Best Investment Property Cebu

Winning comes as no surprise as Grand Residences Cebu took home the award for Best Investment Property at the Dot Property Philippines Awards 2018. The project features a mix of condominiums, serviced apartments and hotel units spread out across one of central Cebu’s largest land plots.

Investors benefit from Grand Land’s local knowledge as they have carefully designed Grand Residences to ensure strong demand along with a steady return on investment.

Best Investment Property Bacolod

Smile Residences

Best Investment Property Bacolod

The investment potential of Smile Residences starts with its location within the SM City Bacolod Complex. Simply put, no other project can match the level of convenience found in one of the country’s most well-known areas. It is also situated by the bay meaning residents are able to enjoy a spectacular view of Bacolod’s dazzling sunsets each and every day. Beyond that, attractive lobbies and amenities along with a wide range of unit types adds to the value of Smile Residences.


When is the best time to buy?

The property market goes in cycles but the best time to buy property isn’t necessarily when its on its way up.

It is easy to think that the best time to buy property is when the outlook for the market is looking rosy, but this is not always the case. Astute property investors who are in the game to make a buck will pick windows in the market where they see opportunity. But buying property isn’t always about making money but rather to providing a roof over your head, so if the market is soft and you aren’t sure whether to jump in, answer these following questions to help make your next move.

1. What is the purpose of your investment?

If you are buying property to put a roof over your head you should consider whether buying a property will be cheaper than renting. This way you will be paying off your own property rather than your landlords. On the flip side if property values are low and rents are high then this could be an opportunity to generate a good rental yield even if the property value remains the same. There is always a need for property regardless of the state of play of the market, so consider your strategy in order to work out what works best for you.

2. Can you increase value with improvements?

One way to add value to a property quickly is to make improvements to it. There are many purchasers who do not have the time, energy or want to do any refurbishment works themselves so this is a great way for you to make money. Find a run down property in a well maintained and popular block and the cheaper price tag will give you more money to spend bringing the property up to scratch.

3. Do the numbers stack up?

If the investment is a buy-to-let take time to add up your numbers and check that rent you will collect with cover all your outgoings and any potential void periods. Even if the property is for your own use search the market for the best mortgage in order to maximise your returns and minimise your outgoings.

4. How can I be sure my investment is as safe as houses?

Whether you are buying a property for investment purposes or your own home it is important to consider its saleability in the future. By this we mean how it would quickly it will sell. When the market is buoyant it is easy to sell and move on, but when the market is stagnate it can be tough so it is important that your property stands out from the crowd. If you have the choice pick the best unit in the building, the one with the best layout and outlook rather than the dark unit which looks straight onto the neighbouring building and is located next to the lift so you hear the lift shaft in action. It is important to pick a building that is well managed, is of a good quality and if possible with fewer units to make it more exclusive and reduce your competition. Take time to consider these points in order to make an informed decision on your purchase.


Betong Airport could help create a new tourism destination in Thailand

Photo/Aoeinista - Betong is known as the misty town with sea clouds frequently hovering over it

Betong believes it can be a new tourism destination in Thailand thanks to the recent opening of a commercial airport. Located close to the country’s border with Malaysia, the district boasts a number of unique attractions but driving through the surrounding mountainous terrain has made getting there troublesome.

However, the newly opened airport changes that. Service to and from Don Mueang International Airport in Bangkok will be operated by Nok Air. More routes are expected to be added, including international connections with Malaysia and possibly Singapore.

According to local officials, the facility will initially double the number of tourists that visit Betong with more growth over time is possible. Crucially, the region has avoided the sustained violence that has plagued Thailand’s southern most districts over the years.

Betong is home to the largest mailbox in Thailand

Betong – A new tourism destination in Thailand

Betong is one of Thailand’s more unique places. It is perhaps best known as the misty town with sea clouds frequently hovering over it in the morning. Many visitors head to higher ground above the mist where they can take in some of the country’s most picturesque sunrises.

Nestled amongst mountains and forests, the district is a nature lover’s paradise. There are several national parks with a lot of hiking on offer. You’ll also find Betong Hot Springs where you can partake in a relaxing soak.

Beyond that, Betong is home to many other attractions, such as expansive flower gardens, rolling durian farms and caves. And those who enjoy kitsch sights can head over to the largest mailbox in Thailand. Not only is this a real thing, but
the story behind it is pretty interesting
.

More Travel:

Bang Tao Beach is a dreamy destination


Is it better to buy a furnished or unfurnished condo?

Among the most difficult decisions you will need to make during your property search is deciding if it’s better to buy a furnished or unfurnished condo. There is a case to be made for both sides. On one hand, purchasing a unit that already has furniture in it can save you a lot of time and hassle.

Of course, this comes at the expense of customization. A furnished condo means there is little room to make the space your own. There will also be a few times when you don’t have a say in the matter. With that in mind, let’s explore which option is right for you.

Related:

3 small details that can add big value to your new condo unit

This is when you should buy a furnished condo

If the unit won’t be your primary residence or you are only planning on staying there for a few years before moving, then it makes much more sense to buy a furnished condo. The time, effort and investment required to furnish it yourself won’t be worth it.

In addition to this, going the furnished route is more practical if you are purchasing a studio or smaller one-bedroom residence. These oftentimes have quirky dimensions that makes finding properly fitting furniture a chore.

This is when you should buy an unfurnished condo

Obviously, you should buy an unfurnished condo if you already have furniture. Those buying a luxury unit may want to consider this option as well. Utilizing the services of an interior designer to craft a bespoke residence can add value to it and make it more appealing on the rental market.

When you don’t have the choice

You won’t have the choice to buy a furnished or unfurnished condo if it is part of a rental program. Developers require you to have their furniture package in order to participate in the scheme and in most cases this cost is included in the final selling price.


As good as a Grammy: Hard Rock Hotel Penang picks up 1st Honour At Dot Property Malaysia Awards 2017

John Primmer (right), Hard Rock Hotel Penang General Manager, receives the Best Hotel Development Award from Dot Property Magazine Editor in Chief Cheyenne Hollis (left)

The Dot Property Malaysia Awards 2017 named
Hard Rock Hotel Penang
 as the country’s Best Hotel Development. The trendy resort was honoured for its top-notch design among numerous other reasons.

“This is the first time we have been recognised by a property awards programme, so this is special for us,” John Primmer, Hard Rock Hotel Penang General Manager, proclaims. “It’s great to be recognised for our design, facilities and overall quality that continues to be a hit with guests. Despite being eight years old now, winning shows that Hard Rock Hotel Penang still rocks.”

Hard Rock Hotel Penang lets everyone live the rock ‘n’ roll lifestyle

Hard Rock Hotel Penang’s design was highlighted by The Dot Property Malaysia Awards’ judging panel as being both sleek and practical. The interiors feature the rock ’n’ roll style you’d expect to find along with numerous innovative touches and plenty of space for the whole family to enjoy. Additionally, facilities such as the massive swimming pool and fitness centre integrate seamlessly into the resort allowing guests to enjoy everything it has to offer.

As one of only a few Hard Rock Hotels to be located on absolute beachfront, the sands of Batu Ferringhi can be found right in front of the property. Many of the spacious rooms and suites at Hard Rock Hotel Penang offer stunning views of the water as well as balconies where you can hang out and feel like a true rockstar.

While there are plenty of quality hotels in Malaysia, the creative design and awesome ambiance separates Hard Rock Hotel Penang from the rest of the field. That is why it has won Best Hotel Development at The Dot Property Malaysia Awards 2017.

About The Dot Property Malaysia Awards 2017

Organised by Dot Property Malaysia, The Dot Property Malaysia Awards 2017 honours the
best projects
, developers, design and companies that contribute to real estate in the country. Winners are selected by Dot Property Malaysia and Dot Property Magazine who evaluate every candidate based on a number of factors created specifically for each individual category.

You can read more about Hard Rock Hotel Penang’s victory in the July/August issue of Dot Property Magazine as well as online at
www.dotpropertyawards.com
. The full list of winners forThe Dot Property Malaysia Awards 2017 will be unveiled on 13
th
 July.


Big jump in new home sales

Singapore saw a big rise in the number of private residential homes sold during March, with the number of 843 sold by developers representing a substantial 180 percent increase from the 301 units sold in February.

This was the highest number of sales in a single month since July 2015. The increase in volume, according to real estate agency PropNex, was due to more units being launched by developers, the number of which rose from 209 units in February to 682 in March.

Analysing the figures, Ismail Gafoor, the Chief Executive Officer of PropNex Realty, said: “The surge in transaction levels during March is evidence that purchase motivations are largely project driven – with The Wisteria and Cairnhill Nine contributing more than 50 percent of the total sales volume last month.

“Even though there was a lack of major new launches in 1Q 2016, transaction volumes of new private homes improved quarter-on-quarter to 1,466 units in total; or a 12 percent improvement from the same time last year”.

Mass market homes still most popular

Properties in the Outside Central Region (OCR) was the most sought after in March, accounting for 55 percent of new private home sales, while Rest of Central (RCR) and Core Central Region (CCR) accounted for 20 percent and 25 percent respectively. The five top-selling projects were – Cairnhill Nine, The Wisteria, The Poiz Residences, Kingsford Hillview Peak and Botanique at Bartley.

Homebuyers will continue to scout for affordably priced homes

Amid challenging market conditions, upcoming new projects will likely be more competitively priced. Primary market performance will continue to depend on developers finding the right pricing strategy – which accurately portrays current sentiments. Buyers will remain very price and quantum sensitive and would only go in if they perceive the property to be a good value proposition.

With no changes to the government curbs on the horizon in 2016, the private residential market is expected to remain relatively soft. However, we can see a more active market as more projects are launched – new private home sales volume for 2016 is likely to exceed 8,000 units.

Ismail confirmed that he expects strong sales volume in 2Q, with the upcoming launches of GEM Residences, Sturdee Residences and Stars of Kovan; which will definitely spur buying demand. At the same time, developers will also be adjusting their pricing strategy to move units in their past launches – as evidenced in three of the five best-selling projects in March being from previously launched ones.


Boat Avenue leads transformation of Phuket’s Cherng Talay

Boat Avenue has helped stimulate the Cherng Talay area of Phuket

Cherng Talay and the nearby Bang Tao Beach have always been a popular spot for tourists in Phuket. The area is also known as Laguna due to the massive resort area bearing this name that contains seven hotels including Banyan Tree Phuket, Angsana Laguna Phuket and Dusit Thani Laguna Phuket.

The resorts are nice, but Cherng Talay lagged behind Patong and other more developed areas of the island. A lack of retail spaces, restaurants and other facilities meant guests who wanted to leave the area would need to trek 20 to 30 minutes in order to find something.

That all changed in 2012 with the opening of Boat Avenue. The mixed-use commercial mall, one of developer Boat Pattana’s most ambitious projects, welcomed international grocery store Villa Market, many high-quality local restaurants and businesses under retail giant Minor Group to Cherng Talay.

When developing Boat Avenue, Boat Pattana dreamed of creating something unique. They strived to build a place that had never been seen before on the island. In order to accomplish this, the company had to think outside the box.

Boat Pattana came up with the idea to develop Thailand’s first container mall. This allowed it to construct an eco-friendly development that also embraced Phuket’s status as a port. The firm used old shipping containers and the mall makes up an integral part of Boat Avenue.

Go inside Boat Avenue

A look at Boat Avenue from the sky

Boat Avenue has become a hub for central Phuket with both tourists and the local population flocking to it. In fact, the shopping centre is an informal meeting spot for many people due to its close proximity to most points. Phuket International Airport, Patong and Phuket Town are all less than a 30-minute drive away.

Location isn’t the only positive. You can enjoy food from around the world at Boat Avenue. Mexican, French, Chinese, Italian, American and, of course, Thai restaurants can all be found here along with a few coffee shops.

There is also the aforementioned Villa Market for those wanting ingredients to do the cooking themselves. You will find a wide range of foods from around the world with a good selection of UK and US favourites.

Boat Avenue is home to several boutique clothing stores as well. A couple of furniture and home improvement shops, ATMs and free parking can also be found in the shopping complex.

Cherng Talay keeps growing

Porto de Phuket, a retail complex from Central Group, will open in Cherng Talay later this year

Boat Avenue has served as a catalyst for development in the Cherng Talay area of Phuket. There is no better example of this than Thailand’s largest retail player, Central Group, deciding to launch a THB1 billion (USD32 million) development in Cherng Talay.

The exciting Porto de Phuket is expected to open in late 2019 and will be the first luxury shopping complex in this part of Phuket. More than 65 percent of the development will be dedicated to green spaces as Central Group envisions it as a modern lifestyle hub.

In addition to international restaurants, a department store and plenty of branded shops, Porto de Phuket will host playgrounds, beauty spas and dedicated areas for pets. There is also a space reserved for local products.

The developer believes at least three million tourists will visit Porto de Phuket every year, which would immediately make it one of the most popular shopping malls in Phuket.

This type of development would have been unheard of ten years ago, but Cherng Talay has established itself as a key area of Phuket. International visitors enjoy the surroundings and easy access to the beaches. However, its hard to envision Laguna becoming such a key place without Boat Avenue.

For more information on Boat Avenue, please visit
www.boatavenuephuket.com


Boom time in HCMC

Prices and sales of residential property in Ho Chi Minh City both rose in the final three months of last year, according to the latest research from real estate firm Savills.

In its
Savills World Research Residential Index
 report published last Friday, it noted the Q4 2015 residential index stood at 90.2 points, an increase of 1.3 points quarter-on-quarter (QoQ) and up 1 point year-on-year (YoY).

The overall absorption rate was 21 percent, up 4 percent QoQ but down 1 percent YoY due to abundant supply of property in the city.

Approximately 7,700 units were sold during the three-month period, what Savills described as a “remarkable” increase of 47 percent compared with the previous three-month period, and an increase of 86% YoY.

Savills said this was the highest transaction volume in any quarter it has recorded.

Grades ‘A’ property sales increased by 129 percent QoQ and 228 percent YoY. Grade ‘B’ transaction volumes grew 79 percent QoQ and 137 percent YoY. Both Grade ‘A’ and ‘B’ saw the highest sales levels that have been seen at any time during the last five years.

Savills said that a number of critical factors, including better financial support, construction commitment from developers and diversified products targeting various buyer groups, had resulted in better sales and price movement.

Main image:
A property for sale on Nguyen Huu Tho Street being marketed by Savills Vietnam
.


Breeze Park Condotel is perfect for Phuket property investment

Investments don’t have to be the boring, at least not in Phuket. Here you can find holiday homes that double as investment generating properties. It really is the best of both worlds. If you’re looking for something at the affordable end of the market, Breeze Park Condotel in Kamala Falls just might be the ideal property for you.

This story appears in the newest issue of Dot Property Magazine
.
Click here to read it
!

Kamala Beach is one of the last remaining hidden gems in Phuket. While the water here is clear and the sands pristine, the area remains serene and free from the crowds of tourists found elsewhere on the island.

Another attractive feature of Kamala Beach is the location. It is only a 40-minute drive from Phuket International Airport while Patong can be reached in ten minutes by car. Additionally, the popular Phuket Town and beautiful beaches of Kata and Karon are less than a 30-minute drive away.

Despite the central location and awe-inspiring coastline, development in and around Kamala Beach remains relatively limited. At the north-end of the beach is the MontAzure residential resort development, but beyond that there isn’t much for real estate investors to choose from.

Kamala Beach is a short distance from Breeze Park Condotel

This is just one of the many reasons Breeze Park Condotel is such an exciting development. Located in the hills just south of Kamala Beach, this residential complex boasts an impressive design and an affordable price point that makes it extremely attractive for investors, holiday homes seekers or those wanting one property to do both.

Breeze Park Condotel features three total buildings that will host residences, a 4-star hotel and amenities. These include a spa, fitness centre, a restaurant and a range of boutique shops. The complex also has a large swimming pool that blends into the development.

Perhaps the most impressive amenity is the sky garden which spans all three buildings and offers some of the most beautiful views around. There is lush greenery while residents will be able to enjoy the use of a BBQ area that is exclusive to them. The end goal is to create a development that is family friendly and popular with all types of travellers.

See more:

Additional information on the project

All of this will be operated by a professional hotel brand with experience managing condotel projects.  The developer is still in talks with multiple operators and hope to announce the brand in the near future.

Units in Breeze Park Condotel are spacious and feature modern designs

There are one- and two-bedroom units for sale at Breeze Park Condotel. The Superior Suites are smartly designed one-bedroom units ranging from 31 to 34 square metres. There are also a limited number of spacious Deluxe Suites that measure from 38 to 59 square metres. A small number of two-bedroom, Family Suites are also available.

Each unit has been carefully designed and utilises wood and sea tones that match the beautiful surroundings of the resort. Additionally, the residences feature the minimalist style that is popular around the world. Every unit comes fully fitted and exclusive furniture packages are available.

Another unique feature of the development is the low unit density. There are only 236 units spread across the three buildings at Breeze Park Condotel. This creates a peaceful environment that avoids overcrowding.

Unbeatable offer

As land prices in Phuket have increased, so too have the prices of condominium units. For example, basic units in new Patong condominium developments away from the beach are now starting at THB 3.5 million (USD 112,000) and go up from there. Some of these projects don’t even have hotel or property management in place, which significantly reduce their investment potential.

Breeze Park Condotel has hotel management in place for buyers wishing to enter into the programme. It also has 5-star quality facilities adding extra value to the entire property. And yet the starting price for a unit here is noticeably less than other parts of Phuket.

The one-bedroom units at Breeze Park Condotel start at THB 3.2 million (USD 100,000) while the two-bedroom units are priced from THB 5.7 million (USD 178,500). These are among the most affordable new-build condominium units currently for sale on the island.

And unlike other parts of Phuket, residential development in Kamala Beach is limited despite strong demand for condominium units. CBRE Thailand research found that projects located near the beaches of Surin and Kamala offering a guaranteed return of seven percent for three years recorded strong sales in 2017 and have a good outlook moving forward.

Breeze Park Condotel will have hotel facilities such as a spa and restaurant

The best of both worlds

Condotels are a popular investment in Phuket since they allow the buyer to enjoy the benefits of both a property investment and a holiday home. Owners can enjoy a set number of days at the project throughout the year and will see steady returns on investment while away.

At Breeze Park Condotel, buyers who opt into the rental management programme can enjoy guaranteed returns of seven percent for five years. Owners are also entitled to 30 days of usage during low season or 15 days during the peak season. Of course, this is just the base of what’s possible.

Unlike traditional condominium projects, purchasing a unit in a condotel, such as Breeze Park Condotel, allows investors to take advantage of Phuket’s booming tourism industry. So while seven percent yields are guaranteed, the actual return on investment may be higher. Similar projects in other parts of Phuket are now recording returns of more than ten percent.

Why invest in Phuket

Phuket has long been a popular tourist destination, but arrivals have really taken off in the past few years. Last year, 8.4 million visitors headed to Phuket. This record-breaking total was a significant increase from 2016. And the growth has carried over to 2018.

According to C9 Hotelworks’ Phuket Hotel Market Update, passenger arrivals at Phuket International Airport jumped by almost 19 percent in the first quarter of this year. Part of this was due to the opening of the airport’s new international terminal. The airport now boasts non-stop connections to Europe, China and the Middle East to go along with a wealth of regional and domestic flights.

China remains a key market for Phuket with arrivals from the mainland jumping by almost 50 percent between 2016 and 2017. Arrivals from Australia and Europe have remained steady in the past few years. Guests from Russia are also returning after a few down years.

With more people visiting Phuket than ever before, hotel occupancy rates have also been on the rise. The Thai Hotels Association (THA) noted hotel occupancy rates on the island rose to 75 percent in 2017, an increase of almost 12 percent from 2016 totals. The THA also found that Phuket has the best performing hotel sector in all of Thailand.

Breeze Park Condotel Conclusion

Given the affordable price point, outstanding rental returns, high-quality units and 5-star quality amenities, Breeze Park Condotel is going to be in high demand from buyers. In fact, 20 percent of the units have already been reserved.

It is getting harder and harder to find new-build condominiums with unit prices starting under THB 3.5 million (USD 112,000). What’s more, these usually don’t have the features or 4-star hotel management that Breeze Park Condotel provides.

If you are looking for a property investment in Phuket, Breeze Park Condotel is the rare option that provides real value for money along with the potential for a double-digit return on investment. Scheduled to be completed in 2020, your chance to claim a residence here is going to be limited. The developer believes all units will be sold in 2019 meaning it is important to book yours now.

Click here to request more details

For more information:

Tel:
+66 (0)8 1908 6651 , +66 (0)9 3323 6128

Email:
[email protected]

www.breezeparkcondotel.com


From brewing to buildings: A look at breweries in Asia with property development ambitions

This article on breweries in Asia with property development ambitions appears in the newest issue of Dot Property Magazine.
Click here to download your FREE copy today
!

Singha Beer is widely available across the world. What most people outside of Thailand don’t realize is the same beer maker also develops luxury condominiums and other real estate projects. Some of the Singha developments have been designed to look like a beer pouring into a glass.

And it’s not just Singha swapping brews for buildings. There are several breweries in Asia with property development ambitions. We should note the same people overseeing the brewing business aren’t the ones making property decisions or vice versa.

However, it is interesting, nonetheless. Part of that is just the novelty factor. There has been so much consolidation when it comes to alcohol manufacturers over the past few decades that many companies never had the chance to expand their business portfolios.

The ones that did grow almost always doubled down on beverages in some form or another. Japan’s Asahi is a huge conglomerate but never ventured away from its core businesses. The story is similar for Hite in South Korea. Meanwhile, most leading alcohol producers in Singapore, Indonesia and elsewhere in Asia were gobbled up by multinational corporations.

A handful managed to escape this fate and were bold enough to expand their portfolios well beyond brews. A select few even ventured into the world of real estate. Let’s take a look at the breweries in Asia with property development ambitions.

Also Interesting:

Go inside Asia’s most exclusive branded residences

4 breweries in Asia with property development ambitions

Singha

The Esse from Signha Estate was one of the firm’s first Bangkok projects

Boon Rawd Brewery, owner of Singha Beer, Leo and many other things, made a splash in 2014 when it acquired Rasa Property Development and rebranded it Singha Estate. The move wasn’t a complete surprise, however.

In 2010,
the drinks maker purchased a land plot in Bangkok that was previously home to the Japanese embassy
 via its property management division. It seemed a matter of if, not when, Boon Rawd Brewery would enter the real estate segment.

What was surprising was just how heavily the firm leaned into Singha branding for its property development ambitions. We aren’t simply talking about the name. The developer’s first few developments boast designs directly inspired by its brewing roots.

Both The Esse at Singha Complex and The Esse Asoke feature distinctive facades that are supposed to invoke thoughts of Boon Rawd Brewery’s core business. The developer has moved away from this style when launching subsequent projects for the most part. Instead, an emphasis has been placed on creating the “Singha Life” which spans across all the firm’s brands.

So, are Singha projects any good or is this simply a product of drunken ambition run a bit too wild? All things considered, there is a lot to like about the residential developments completed by Singha Estate. In particular, the amenities and common areas standout. For example, The Esse at Singha Complex has a rock-climbing wall. Good luck finding that at any other condominium.

All Singha Estate developments are sleek, modern and fun. Three characteristics you would expect from a beer company. This is really where the developer stands out. While many homebuilders in Thailand try to incorporate lifestyle elements into their projects, they don’t have the experience or brand power to stray too far from their comfort zone.

On the other hand, Singha Estate has tapped into Boon Rawd Brewery’s understanding of the lifestyle experience. Buying a property from them is more about acquiring that lifestyle as opposed to simply purchasing real estate.

Singha Estate has completed three condominium projects in Bangkok and launched its fourth last year. The company continues to work on a detached housing development in addition to having numerous commercial and hospitality real estate interests.

Chang via TCC Group/ThaiBev/TCC Assets/Frasers Property

One Bangkok is one of the largest real estate projects to be launched in Thailand

If Singha is doing something, it’s only natural to assume Chang is also doing it. Indeed, the massive conglomerate run by Khun Charoen Sirivadhanabhakdi became involved in property development more than a decade before Boon Rawd Brewery entered the industry.

However, the two rivals approach to real estate could not be more different. Whereas Singha openly embraced having a property developer under its umbrella and even lent its branding to the subsidiary, Khun Charoen carried out a much more siloed approached to his businesses.

Everything sits under Thai Charoen Corporation Group (TCC) Group including ThaiBev, which oversees Chang alongside numerous other drinks, TCC Assets and Frasers Property Thailand. The latter two organizations oversee the conglomerate’s real estate interests.

The much talked about
One Bangkok
 is being developed by TCC Assets and Frasers Property Thailand. Other notable buildings in the TCC Group portfolio include Samyan Mitrtown, Park Ventures Ecoplex and W Bangkok Hotel. However, it seems extremely unlikely we will ever see a Chang-branded condominium.

About One Bangkok:

One Bangkok and Dusit Central Park in billion dollar battle for supremacy around Lumphini Park

San Miguel

Most of San Miguel’s property projects involve low-rise housing

San Miguel is the best-selling beer in
the Philippines
 and Hong Kong. Its success since being founded in 1890 has allowed it to venture way beyond drinks. These days the conglomerate has interests in power generation, infrastructure and oil to name a few industries. It even owned a 49 percent stake in Philippine Airways for a minute during the 2010s.

The beer maker launched its real estate arm, San Miguel Properties, and has slowly built up a portfolio of developments. In terms of residential projects, the firm has focused almost entirely on house-and-lot and townhomes with many of these located in suburban areas around Metro Manila.

Makati Diamond Residences is the most well-known project to have been developed under San Miguel Properties. The luxury serviced apartments are very popular in Makati while the large ballroom is a highly sought-after wedding venue.

More from the Philippines:

Why does the Philippines need to develop tourism-focused real estate?

Sapporo Breweries

Photo: Guilhem Vellut – Yebisu Garden Place features office, retail and residential buildings

When you think of Japanese beers, Sapporo isn’t the first name most people think of. However, it does have a property development arm unlike some of its bigger competitors. The company launched Sapporo Real Estate in 1988 more out of necessity than anything else. It had a couple of old breweries and wanted to turn them into viable commercial spaces while retaining each site’s heritage.

Both Sapporo Factory and Yebisu Garden Place have become popular destinations after launching in the 1990s. The conglomerate completed another commercial center, Ginza Place, in 2016 featuring a similar mix of restaurants, retail space and bars serving various Sapporo products.

A total of five residential developments have been developed by Sapporo Real Estate with all but one of these located in Tokyo’s Ebisu neighborhood near Yebisu Garden Place. These were all built before 2006 on land owned by the group.

Additionally, Sapporo Real Estate owns seven office buildings in Japan with the majority of these also found around Ebisu.

Also Interesting:

A look at Japanese real estate investment


Brexit: prices to drop 5%

With a referendum on the United Kingdom’s future role in the European Union (EU) set for June 23, despite Prime Minister David Cameron’s best efforts last week, British online estate agent
eMoov.co.uk
 has predicted an EU exit could see U.K. house prices drop by as much as 5 percent.

The wealth of financial and economic implications of an EU exit stretch far beyond the U.K. property market however, for many U.K. residents the impact to property prices will be their primary concern as their home is the most expensive asset they are likely to ever own.

The firm recently surveyed more than 1,000 British homeowners and found 55 percent believed leaving the EU would impact the value of their property (34 percent think they could increase, 21 percent think they could decrease).

Since Great Britain joined the EU in 1973, the average house price has increased by more than 2,000 percent it believed that it won’t necessarily be leaving the EU itself that could see house prices drop, but the uncertainty amongst homeowners and buyers as to what will happen next.

eMoov
 believed that an EU exit would cause a nervous ripple effect across the U.K., with homeowners and potential buyers choosing to baton down the hatches and weather the potential uncertain economic storm before committing to such a notable financial decision. Will unemployment rise? GDP fall? Could exports fall, causing businesses to fail?

The resulting potential reduction in demand for housing will almost certainly cool the market and, as a result, house prices will reduce in turn to reflect this. In an already inflated U.K. market this could lead to a potential loss of £11,000 to the average U.K. homeowner.

Founder and Chief Executive Officer of
eMoov.co.uk
 Russell Quirk, said: “Should the U.K. public vote to leave the EU, we believe it could have a detrimental knock on effect to the U.K. property market.

“We’ve been part of the EU for more than 40 years now, so it’s understandable that such a momentous change will lead to uncertainty among the U.K. public, as to the resulting implications an exit will have on them.

“This air of uncertainty will lead to inaction among those looking to buy and sell and a resulting dwindling in demand, That will always lead to a reduction in house prices. We believe it could easily drop by 5 percent, maybe more, so the average U.K. homeowner could see their property reduce by £11,000 in value.”


A brief guide to buying South Korean property and letting it out

Buying South Korean property has flown under-the-radar despite a hot property market and very friendly foreign ownership rules. There are a few reasons for this, of course. For starters, real estate prices in the country are higher than what’s available in Thailand, the Philippines and, in some places, Japan.

Additionally, the South Korean government introduced a series of measures designed to cool the sizzling home market in Seoul. These included legislation to restrict borrowings to existing homeowners and reigning in spiralling household debt. However, the impact of these have been minimal and home prices keep rising in the South Korean capital.

Residential prices elsewhere in the country remain flat. This makes it an interesting time for buying South Korean property. Even as the government has rolled out nine separate rounds of cooling measures, it has only slowed the real estate market’s momentum in Seoul. Similar to Hong Kong, it seems like investors will keep scooping up units here until something drastic happens. There are some limited property investment opportunities in other parts of the country, but not enough to move most overseas buyers.

Want to know about buying South Korean property? Here’s a brief guide with some basic information you’ll want to know.

Buying South Korean property

Foreign ownership

It has been more than 20 years since the South Korean government deregulated the real estate market and opened it up for foreign ownership. These days foreign nationals buying South Korean property can acquire apartments, houses, entire buildings and land. The only thing they can’t buy is land in military installation reservations, cultural property protection zones or ecosystem reservation districts.

Paperwork

Just like all real estate transactions, there is a mountain of paperwork that must be done. Unsurprisingly, in South Korea this paperwork is all in Korean. It’s also important to note what you’re required to submit varies depending on if you’re a resident in the country or are buying from overseas. Working with a local real estate agent is strongly advised due to the language and knowledge challenges you may encounter. There are many licensed real estate agents who work with foreigners to ensure a smooth transaction process.

Taxes

Buying South Korean property will require you to pay various taxes and fees. These are all fairly standard and overseas buyers are not burdened by any stamp duties or taxes targeting non-local buyers. All of these taxes and fees are the responsibility of the buyer unless negotiated otherwise.

Acquisition tax:
2.3 percent of purchase price

Registration Tax:
3 percent of purchase price

Value Added Tax (VAT):
10 percent of purchase price

Housing Bonds:
5 percent of purchase price

Stamp Duty:
Varies, but around 0.20 percent of the property value.

There are also a few smaller taxes (nothing more than 1 percent) buyers are responsible for in addition to legal fees.

Letting out your South Korean property

The system of renting out a residential unit in South Korea is probably quite different from what you are accustomed to. There are some traditional monthly rentals, but the majority of properties are let out via a Jeonse.

So what’s this?

Instead of rent, the tenant will put down a large deposit of 50 to 80 percent of the market value of the property. They then get to stay in the apartment rent free for the duration of the agreement which is usually no less than two years. The landlord will return the deposit after the agreement, but is able to collect all interest the money has earned.

If you’re confused about Jeonse, think of it like this. The tenant who lives in the property is a moneylender while the landlord is the borrower. The unit is used as collateral. If anything happens to the deposit, the tenant is still entitled to their money. The property will be put up for sale and the tenant will receive money after once this is completed.

How difficult is the entire process?

If you’re an experienced real estate investor, buying South Korean property is no more or less difficult than most other countries. You will need to work with a local real estate agency. This isn’t that hard to find and several cater to overseas buyers. The biggest upside to the South Korean property market is the friendly foreign ownership policy which means you aren’t limited in terms of what can be acquired.

Letting out your property will require you to better understand the benefits and risks of the Jeonse system. That being said, more people in South Korea, especially Seoul, are willing to rent a residential property by making monthly rental payments. Just do your research on the neighbourhood, rental demand and price prospects before making a final decision.