Is now a good time to invest in Myanmar real estate?

Diamond Inya Palace in Yangon is one of only a few projects available to overseas investors

Myanmar has long been touted as a potential investment star of the ASEAN for years now. Like any frontier market, the country has experienced ups and downs. The uneven implementation of both the 2016 Condominium Law and 2017 Condominium Rules created some confusion which made it difficult for overseas buyers to invest in Myanmar real estate.

However, the country looks to finally be turning the corner and this means now just might be a good time to invest in Myanmar real estate.
Last year saw the Ministry of Construction form a committee to get the ball rolling and now it is possible for international investors to purchase a condominium unit in the country
.

Since it is finally possible to invest in Myanmar real estate, the question is now should you do it. As with all frontier market investments, there is risk, but the returns could be better than anything currently available in Southeast Asia.

Click for information on an exciting property investment opportunity in Myanmar

3 reasons you should invest in Myanmar real estate

1) First movers always rewarded

If you’re considering an investment in Myanmar real estate, look no further than Bangkok or Metro Manila for the benefits of being a first mover. In the Thai capital, the price of resale freehold condominium units in prime areas almost doubled between 2004 and 2013,
according to CBRE Thailand
. The consultancy also found that prices jumped by at least 50 percent between 2014 and 2018 with some areas recording higher price growth.

It has been a similar story in Metro Manila during the past few years as a strong economy fueled by overseas investment caused condominium prices to soar,
according to research from Bangko Sentral ng Pilipinas
, the country’s central bank.

A city such as Yangon could be poised to see similar growth in the years to come. However, the difference between investing today and five years from now could be a costly one.

2) Myanmar economic outlook remains solid in mid- and long-term

The economic growth of Myanmar after it opened up was sharp with foreign investment being a key driver. Like most other countries, the country is dealing with the fallout from COVID-19 in the short term. However,
overseas private equity investors active in the country, such as Ascent Capital, remain upbeat about the economy’s prospects in the mid- and long-term
.

That being said, Myanmar’s economic transformation is entering a crucial stretch and the next few years will be important as it looks to recapture growth post-pandemic.

3) Modern developments take shape

A look at Diamond Inya Palace

1
 of 6

Perhaps the largest concern facing investors is trusting a developer in a market where modern condominiums are still uncharted territory. One developer in Myanmar is changing that. Mandalay Golden Wing Holding Limited (MGW) has local experience as well as knowledge backed by an international team of experts.

The developer’s newest project, Diamond Inya Palace, is a gamechanger for the Yangon property market
. Not only is the project the city’s tallest residential building, but it is one of the only developments offering an international standard of luxury.

Diamond Inya Palace is in one of the best locations in all of Yangon with the beautiful Inya Lake and the greenery of the Diplomatic Compound providing a stunning backdrop. No other project can match the views found in the units here.

What’s more, Myanmar Condo Law and individual ownership is granted for every local and foreigner purchasing a residence at Diamond Inya Palace. MGW is one of the few developers in Myanmar with the skills and understanding to assist overseas property investors.

About 20 overseas nationals have inquired about this project resulting in four secure sales. Our first customer was from Dubai and his purchase was one of the eight penthouse units. Two units sold were four-bedroom units, with interest from clients from Korea and China. Our recent sale from an overseas buyer was another four-bedroom unit, from Singapore and the US.

Learn more about Diamond Inya Palace


Office rentals soften in SEA

Regional economies have been slowing in the ASEAN region. According to an outlook by IMA, real growth among the ASEAN Six (Singapore, Malaysia, Indonesia, Thailand, Philippines, and Vietnam) has moderated from 5.8 percent in 2012 to 4.1 percent in 2015, and is likely to maintain between 4.5 percent and 5.3 percent during the next five years.

Real estate firm JLL said that weakness in the commodity market and the oil and gas sector continued to hurt the office markets of Kuala Lumpur and Jakarta. In these cities rents have declined more severely than during the last quarter, although this has somewhat helped to maintain their competitiveness across Asia-Pacific. Jakarta is the 13th most expensive, while Kuala Lumpur is highly competitive at the lower 5th percentile (26/27), according to a recent
JLL Asia-Pacific Office Index
.

Surprisingly, rental decline was slower in Singapore at 1.4 per cent quarter-on-quarter, but as demand picked up supporting rental growth in other regional cities Singapore is now placed fifth after Hong Kong, Beijing, Shanghai and Tokyo. However, JLL does not expect a recovery in the Singapore office sector any time soon. The large supply in 2016 and 2017, coupled with weak economy and expected low employment growth, are likely to force landlords to take aggressive cuts.

A short term lack of good grade office space in Bangkok has sent rents, on local currency term, rising by more than 2.6 per cent quarter-on-quarter- the highest across Southeast Asia this quarter. However this is not expected to be sustained. The larger supply of good grade suburban offices in the coming years could add downside pressure on rents over the next 12 months.

As expectedly, the growth in the Offshoring and Outsourcing sector, together with new completions, lifted rents by 0.9 percent in Manila. Nonetheless, despite the increase overall the rents in Makati CBD remains highly competitive compared with other cities in Asia-Pacific. Based on the
JLL Office Index
, Manila (Makati CBD) comes in at the lower 23rd percentile (18/27). This bodes well for these occupiers.

Capital values across Southeast Asia office markets largely kept pace with rental movement, except in Bangkok where yields were driven down by high land costs plus strong buying interest for limited assets for sale.

In Singapore weak leasing demand coupled with the U.S. interest rate rise has led to yield expansion as capital values fell more than 3 percent quarter-on-quarter.

Personal consumption and retail rents slowing

Growth in personal consumption level across ASEAN is slowing due to softer demand in Singapore, Malaysia and Thailand.

In Singapore, weaker tourism arrivals and overall high cost of retail operations have led to retail rents contracting.

Landlords in Jakarta were conscious of the weaker economic conditions and have kept rents stable.

The rising affluence in the Philippines continue to support demand from Food and Beverage and fashion retailers leading to continual strong gains in rents at 1.9 percent quarter-on-quarter – amongst the highest after Shanghai according to recent JLL Retail Index.

Dr Chua Yang Liang, Head of Research for Southeast Asia, said: “Overall we remain positive over the retail segment in Manila. Given the lower rents in Manila, we can expect this sector to remain resilient as increasingly more international and regional retailers tap on the growing middle class in Manila.

“While the Singapore office market has short term risk, it remains a viable investment option beyond 2018 where we could see rental recovery on the back of stronger economic growth forecast.”


It’s official, you can travel to Phuket on July 1 without needing to quarantine

Vaccinated foreign tourists can visit Phuket without needed to quarantine starting on July 1

A plan to allow vaccinated international tourists to visit Phuket without needing to quarantine cleared the final hurdle after Thai Prime Minister Prayut Chan-o-cha and the Centre for Economic Situation Administration approved it late last week. Several airlines have since announced their plans to resume flights to the island.

There was one key change to the scheme that tourists will want to note. Overseas arrivals now must stay in Phuket for a minimum of 14 days. This is up from seven days which was the time frame originally proposed by the Tourism Authority of Thailand (TAT).

Other regulations remain unchanged. Firstly, foreign arrivals to Phuket are required to hold a vaccination certificate with the vaccine needing to be registered under Thai law or approved by the World Health Organization.

Secondly, visitors are only allowed to stay at hotels that have received a Safety & Health Administration Plus hygiene standards certification. Other rules for travelers include being required to use contact tracing apps during their time in Phuket.

TAT noted Phuket has vaccinated nearly 60 percent of its population. It remains on course to reach its goal of inoculating 70 percent of local residents and all tourism operators before the July 1 reopening.

Related:

Pattaya latest Thai city to announce when tourists can return

What airlines will fly directly to Phuket?

With the plan allowing vaccinated tourists to visit Phuket quarantine free officially approved by the government, several airlines have unveiled their intentions to resume flights. Unsurprisingly, Thai Airways will have the biggest presence, operating six international routes.

Direct flights to Phuket from Zurich, Paris, Copenhagen, Frankfurt, London and Hong Kong will commence on July 2. However, demand for the latter route looks set to be limited with Hong Kong requiring all arrivals from Thailand to quarantine for 14 days.

Emirates announced it will resume four weekly services for its Dubai-Phuket route
. Meanwhile, Qatar Airways is launching four weekly flights from Doha to Phuket. Both routes are expected to serve clients from Europe and America via connecting flights.


One Bangkok and SCG aim to make Thailand’s largest real estate development a circular economy contributor

One Bangkok and SCG sign a historic arrangement to improve the standard of construction sustainability

One Bangkok is Thailand’s largest real estate development which ultimately means it will create a lot of waste. This is not ideal with the Kingdom eager to adopt a circular economy that eliminates waste sent to landfills by turning it into something usable. In order to make a positive impact, the development is partnering with SCG on a historic arrangement.

The partnership will improve the standard of construction sustainability at One Bangkok. The most innovative feature sees concrete waste recycled into precast panels that can be used in buildings. Additionally, SCG will lend its expertise in holistic waste and pollution management planning to the development.

“As a landmark project slated to set new standards in design, quality, sustainability and smart city living in Thailand, One Bangkok has always looked into strategic partnerships with industry leaders widely recognized for their outstanding capabilities, expertise, quality and reliability,” Panote Sirivadhanabhakdi, Group Chief Executive Officer of Frasers Property, said. “We are delighted to strengthen our relationship with SCG, a long-term partner who shares our vision and ambition to create long-term values through sustainable construction practices.”

Related:

One Bangkok and Dusit Central Park battle for supremacy around Lumphini Park

SCG will collect the concrete aggregate waste created at the One Bangkok construction site and send it to the CPAC Smart Structure’s precast plant for recycling. There it will be turned into precast concrete panels that will then be used to clad building façade and walls within One Bangkok.

“The constant growth of construction industry today has resulted in a huge increase of construction waste.  As a manufacturer and distributor of construction materials, SCG is aware of the issue and adopted the concept of circular economy in the development of innovative products and services,” Nithi Patarachoke, President, Cement-Building Materials Business, SCG, explained. “Our partnership with One Bangkok encompasses the design of new concrete mix from waste concrete from the construction into the production of precast items, creating value from waste materials and the development a holistic waste management plan for waste construction materials at the project.”

The concrete manufacturer has looked far and wide for partnerships that help close the loop of Thailand’s circular economy.
This includes an agreement with Starboard, a surfboard and watersport equipment maker, that sees SCG help with various sustainability initiatives in the country
.


One Phuket villa development is going off the grid

The phrase “off the grid” usually invokes images of bearded survivalist types or Henry David Thoreau. No one associates the concept with luxurious homes in an island paradise. Until now that is. Riverhouse Phuket has created Thailand’s first and currently only off-grid residential development. And these are no spartan accommodations.

It is important to understand what Riverhouse Phuket means when it says off-grid. E Land Development, the developer behind the project, worked to create a complex that does not rely on outside sources for electricity or water. Instead, these are generated, stored and maintained on-site. The end result is self-reliance since it isn’t hooked up to outside sources.

Let’s start by looking at the electric situation which is 100 percent solar powered. This is generated through solar panels which have been installed on each villa as well as elsewhere throughout the estate. However, generating renewable energy is only half the challenge.

In order to be truly off grid, Riverhouse Phuket needed to make sure electricity was available during nights. This was accomplished by equipping each residence with batteries that store excess power generated during the day. What’s more, the batteries and solar cells across the estate are connected via a Smart Grid to ensure the entire development is powered by on-site renewables without needing an outside source of energy.

This is only part of the story, however. Villas at Riverhouse Phuket have been designed to maximize energy efficiency. This was done by examining how power is expended by residents and then finding ways to reduce or even eliminate unnecessary usage. An example of this is the in-home dehumidifier that keeps residences free of fungus and smells without needing to use air conditioning on a regular basis.

Turning our attention to water, this is another aspect of the project that is off the grid, so to speak. Wells were drilled on the property to ensure a reliable supply. It is pumped from these underground sources using special pumps before going through a four-stage water filtration system that guarantees purification. Each home is equipped with its own sealed 4000-liter tank to make sure no one runs out.

Not only are these features good for the environment but they will help out your wallet as well. That’s because you won’t be on the hook for any of those pesky power or water bills.

Related:

These amazing Phuket villas are perfect for WFH

Off the grid but still on point

Riverhouse Phuket villas balance functionality with style

Off the grid houses tend to invoke images of single-room log cabins deep in the heart of a forest. Riverhouse Phuket is certainly not going down that route. While you will find plenty of lush, tropical forests all around. The accommodations are a major step up from your typical off-grid variety.

The developer opted for loft-style pool villas that incorporate open spaces and tasteful industrial elements. This has created a modern, vibrant design that is really unlike anything else currently for sale on the island.

Two- and three-bedroom villas are available along with a select number of four-bedroom residences that offer a significant amount of customization. All unit types come with a European-style open kitchen with full appliances, flexible spaces on the second story and the stylish natural stone tiled pools among other features. And, of course, each villa is off the grid with energy and water being entirely self-sufficient.

Riverhouse Phuket is located in
Cherngtalay
, a bustling area that has become one of the island’s premier destinations. Bang Tao Beach and Laguna Golf Phuket are less than a 10-minute drive away while several prominent shopping centers, such as Boat Avenue, are just around the corner. Additionally, the project is within commuting distance to most international schools.

Two-bedroom villas start at THB16.9 million
 while
three-bedroom residences are THB20.9 million
. You can find more information on Riverhouse Phuket by
clicking here
.


ONE.SIX Development Is Bringing A New Perspective To Thailand Real Estate Through Experience and Storytelling

This look at how ONE.SIX Development is bringing a new perspective to Thailand real estate appears in the latest issue of Dot Property Magazine.
Click here to read it
.

Perception isn’t always reality when it comes to real estate. Computer-generated images and lavish showrooms are standard operating procedure these days. This isn’t necessarily a bad thing, but it does present developers with a challenge.

How do you convey an experience when it doesn’t exist? By definition, a project is just some walls, windows, concrete and other building materials. There is nothing inherently special about it. A home doesn’t become a home until it can be experienced. Ultimately, this is what drives
ONE.SIX Development
.

“Experience is at the core of real estate. When it comes to developing a project, it is important to bring life, and the intangibles to the project, not only the tangibles. A home should be personal. It should move you,” Khun Tanyatip (Tanya) Chearavanont, CEO and Founder ONE.SIX Development, states.

While people aren’t necessarily moved by buildings or showrooms, the experience of the development’s story can make a lasting impression. Khun Tanya credits her aunt, Khun Thippaporn Ahriyavraromp, for teaching her the importance of having a unique story attached to a development.

“My aunt emphasized the importance of storytelling because this allows us to create something with heart. A development should be more than just a building,” Khun Tanya says. “Storytelling puts us in the shoes of those living in the project, it helps paints a bigger picture and allows us to build a better product for the end-users.”

As Chairman of the Board of Directors at Magnolia Quality Development Corporation Limited, Khun Thippaporn knows a thing or two about real estate. Her advice was invaluable as Khun Tanya and the team at ONE.SIX prepared to launch their first project,
The Strand Thonglor
.

The Strand Thonglor

Khun Tanya approached the project with a holistic mindset, centered around a live/work/play concept but was also aware the idea alone wasn’t enough. She wanted The Strand Thonglor to have mixed-use components, but more importantly wanted it to be a development with life and energy. ONE.SIX wasn’t going to be another quiet place where people arrive and head straight to their rooms.

However, the solution needed to have a purpose. Creating some spaces just for the hell of it wouldn’t make people want to gather there. After all, a story is no good if it is riddled with plot holes.

“To go back to storytelling, it was important that everything we do has a purpose. With The Strand Thonglor, we were committed to giving back to the neighborhood, as we took away a very important place for locals in Thonglor. We wanted The Strand to be a place where people come together. That is a crucial part of its story,” Khun Tanya explains. “This is why we included a commercial area and park at The Strand Thonglor that is open to everyone. We wanted to create a sense of community at The Strand, while still prioritizing the privacy and security of our residences.”

The story will have started well before people are hanging out here, laughing and sharing memories. It began with the vision of Khun Tanya and sharing The Strand Thonglor’s experience with others through the show units. Not as an abstract possibility, but something that reflects what people can actually expect.

“The term ‘minimal luxury’, a phrase we use to describe the project style, wasn’t a marketing gimmick. We designed our show units to be minimal with a subtle color palette and clean architectural lines to allow customers to envision their lives here, how they might want to design their unit and how they may want to live their lives at The Strand. A sales unit should not be a distraction for the customer from what they are purchasing, but a realistic reflection of what our project has to offer.” Khun Tanya notes.

Bringing a new perspective to Thailand real estate

Khun Tanya’s own experiences seeing pet friendly buildings in New York led her to believe it can work in Bangkok

ONE.SIX isn’t afraid to go against traditional norms. That can naturally ruffle a few feathers, especially in the real estate industry. Case in point, not everyone was on board with Khun Tanya’s desire to make The Strand Thonglor a pet friendly development.

“With The Strand Thonglor, it was important to balance everything. The vision, sellability, finances and the rest. An example of this is being a pet friendly project. This was important to us although it isn’t widely accepted in Thailand,” Khun Tanya recalls. “The key was to find a compromise. We made sure there were rules and regulations in place that would provide our non-pet owner residents peace of mind.”

Khun Tanya has a very clear vision as it relates to real estate but freely admits it may not be exactly what the market is comfortable with just yet. Finding common ground has helped ONE.SIX bring a new perspective to Thailand real estate that allows it to challenge what’s accepted without alienating the public.

“At first, I was adamant about sticking to my core beliefs. That being said, talking to the market softened my views. I want to push the boundaries of real estate, but I also need to find a compromise,” Khun Tanya details. “It is necessary to understand where the market is at and how it will adapt to changing preferences. The Strand Thonglor is a mix of our unique vision and what the market is asking for.”

In a city like Bangkok, where change is just about the only thing that stays the same, all developers are constantly needing to adapt.

“Competition in Bangkok is very hardcore. It actually forces all developers to level up constantly. There is no standing still or being willing to accept the status quo,” Khun Tanya points out.

Instead of trying to capture what’s now, ONE.SIX looks to create timeless homes and spaces that transcend any one moment. And while it is easy to get caught up in what is trendy, Khun Tanya focuses on tasteful design rather than trends in order for her projects to remain timeless.

“We want to build projects that will always be in demand. Our focus isn’t on quantity and that means we have the freedom to pursue our passions,” Khun Tanya says. “The Strand Thonglor is our first project. Our next one might be something completely different in terms of product. However, it will retain our fundamental goal—to bring the market a development that will always be sought after, irregardless of how many years have gone by.”

Seeing things differently

The art of storytelling was one of the most important lessons Khun Tanya learned growing up around real estate

Khun Tanya’s journey in real estate has taken her around the world. From studying architecture design and art history in the United States to working with Ogilvy & Mathers NY, Sotheby’s and Hongkong Land, her own experiences have shaped the core beliefs of ONE.SIX Development.

“Being raised in many different places allowed me to see and experience a wide range of developments in Hong Kong, Macau, Shanghai, New York and elsewhere,” Khun Tanya points out. “I was able to see a lot of interesting, curated projects and learn what makes them special. Most people don’t notice the thought that goes into this. Understanding how to create that experience was invaluable.”

She continues, “I was able to witness their strengths and weaknesses firsthand and compare it to what’s available in Bangkok. I hope this allows me to see a more holistic industry.”

Over the years, Khun Tanya had several great mentors who taught her a lot about real estate. However, it was her family that helped kindle a passion for property and brought her vision to Bangkok.

“My mother always took me to look at open houses growing up. Whenever there was a new development, we would visit it. This experience helped me understand the luxury segment,” Khun Tanya says. “While in Hong Kong back in 2015, my aunt asked me to return to Bangkok to work with her for the summer. I ended up staying until today.”

The importance of women in real estate

Women play an important role when it comes to real estate in Thailand. There are many prominent developers with women in leadership positions. They are also active property buyers.

“Women play a big role in the buying process, especially when it comes to the actual decision making,” Khun Tanya notes. “We’ve noticed that it is our female customers who go on to explain the story and product to their husbands or partners. And thus ultimately leading to the purchase. They are the ones who appreciate and see the storytelling and experiences come to life.

The insights of women are also extremely important for project development. As has been the case in other industries, having more perspectives allows you to create better, more inclusive products.

“As a woman, I know about the inner workings of the home quite intimately. It allows me to laser-focus on creating truly functional and usable spaces whether it is to cook, to spend time with family, or to do my make-up. Details as small as the placement or height of an outlet can be a gamechanger. These insights let us design better,” Khun Tanya states.

Experiences helped shape Khun Tanya’s real estate vision, and she encourages women interested in the industry to tap into these as well.

“The real estate industry should be very intuitive, after all, we do spend a lot of our time in a home. One piece of advice I can share is that experiences to different types of projects and products matter. Apart from that, be observant of the details, and constantly be comparing pros and cons of one product to another. In Thailand, we have a number of successful female real estate agents who possess a keen eye and interest in the industry. These traits are what developers are looking for as well,” Khun Tanya shares.


Optimise your bonus

After receiving that much deserved end-of-year bonus you may find yourself wondering what to do with the money.

According to real estate firm Plus Property the possibilities vary, from saving for an emergency fund to clearing debts.

Some may choose to invest in Long Term Funds (LTFs) or Retirement Mutual Funds (RMFs), buy bonds (corporate and private) or insurance for tax breaks, or purchase stocks and gold while keeping an eye on market swings.

There is another lucrative investment option to consider – real estate – which can be especially advantageous when the global economy seems bearish.

Why real estate? Because of its potential to steadily increase in value, regardless of how volatile other markets are. Let’s take a closer look at how we can protect ourselves against increased interest rates and inflation through real estate investment, and overcome the seemingly volatile market.

Easing your mortgage burden

Mortgage loan interest is one of the highest interest rate loans available, which is calculated in a compound manner. The rate is floating and based on the domestic economy state for either the Mortgage Loan Rate (MLR) or Mortgage Retail Rate (MRR).

If you choose a longer period to pay off your loan you potentially intensify your debt burden. However, by using your bonus to put out this financial fire you can reduce the principal as much as possible and shrink the debt pay-off period.

An alternative financial instrument is refinancing which allows you to transfer your debt to another bank if you find that it offers lower interest rates. However it is necessary to first find out the true cost of refinancing and whether there is any penalty for prematurely ending your current contract.

When you are certain that the numbers provide you with a lesser monthly debt and work in your favour refinancing can be a very useful option.

Real estate investment

Investing in real estate can lead you to long-term passive income, with leasing your property being another way to optimise your bonus.

To turn a profit in the short term this kind of investment can be used in the form of speculative security. This does not require making a full purchase, allowing you to profit by selling your property to the person who will take up the full ownership baton.

By studying market trends and researching the developer, the prospect of development can help you make more sense of your potential investment.

It is also important to keep yourself abreast of the progress of government mega projects, as these can drive up property prices. Deciding when the best time is to sell securitised real estate to make a profit requires some planning. For example, property can be sold from the pre-sale or post-sale periods up until the project is almost ready to be transferred.

Profits, however, will vary.

A high quality, well-located project that is in good demand can be very profitable, especially during the post-sale period or before the installment debt for the down payment kicks in. In this scenario, when the item is out of stock, the supply is constrained. Once it is released to the market again to meet the demand, prices are usually higher.

During the transfer-ready period, property may be harder to sell because of the various factors that may force you to make the sale more competitive by lowering the price.

Finally leasing your property is another available option. Property in all sectors, residential (condominiums or houses) and commercial (office buildings) can be leased. It isn’t necessary to have a large lump sum of cash to purchase the property as this can be done with the help of loans.

The caveat here is that the leasing rate must be higher than the loan(s) that you are required to pay off each month. Not only can a leased property offset the interest rate of your bank loan, but it can also generate a good yield if the property itself is located in a convenient area in high-demand.

Get equipped

Educating yourself by attending property and investment seminars and courses is always a good idea. By keeping yourself informed about market trends and taking advice from experts you will be able to make more sensible investment decisions. You are also likely to make new connections with people who share this niche interest.

Planning for your family’s financial future can be an incredibly rewarding gift. By following the above-mentioned tips you should be able to propel your financial success to the next level.

This story and Illustration was supplied by real estate firm Plus Property.


Overseas interest in Australia real estate remains, but market starting to shift

The suburbs of major cities, such as Sydney, are now recommended for Australian real estate investment

Real estate investors from Asia are targeting Australia even with stamp duties on overseas buyers in the states of Victoria and New South Wales taking some lustre off the market. There are still plenty of Australian real estate investment opportunities for international buyers, but the trends are changing.

Chinese investors remain the dominate force in the Australian real estate market, but buyers from around Southeast Asia are starting to warm up to residential property Down Under.

“The majority of enquiries are still coming from China, however, there has been a drop in buyers which can be attributed to the increase in stamp duties which are imposed on a State-based level,” Ashley Koenig, CEO at
National Property Buyers
, explained. “In the past, investors have focused on major office investments, however, they now prefer residential construction, looking at medium density and greenfield developments.”

The bulk of interest National Property Buyers has seen is for Melbourne and Sydney properties. There has been a considerable increase of interest in Adelaide and Brisbane real estate since both cities offer lower median property prices and solid yields with capital growth potential.

“In all major cities of Australia there are certain types of properties that perform better than others in relation to capital growth and we are seeing that in areas like Melbourne and Brisbane where there is an oversupply of off-plan apartments,” Koenig said. “This can lead to a lower ‘On Completion Valuation’ that means the purchaser has to contribute more funds toward the settlement.”

Koenig noted that foreign buyers are now looking to move away from buying high-rise, off-plan apartments and are now looking for long-term capital growth opportunities.

According to National Property Buyers, these are desirable traits foreign investors should look for:

New build

Small developments with a maximum of 15 units

Suburban locations within 10 kilometres of major cities

Access to public transport

Close to major retail stores and supermarkets

The nuances of Australian real estate investment

Buying residential property in Australia is transparent, but investor should work with independent experts who understand the local laws. The first step is to
visit the Foreign Investment Review Board (FIRB)
website
 to see if approval to purchase property is required.

The country has different rules for those considering buying a brand new or existing property in Australia. In most cases, overseas investors are only allowed to acquire new or never lived in property. It is also vital to have finances in order before moving forward with a transaction.

“A problem we are noticing is that it is becoming increasingly difficult to obtain financing in Australia for foreign buyers so you must ensure you have access to funds for your purchase,” Koenig said. “We are also seeing a number of valuations for high-rise, off-plan apartments coming in below the purchase price so we recommend considering smaller projects which have less price volatility and a greater upside for capital growth.”

When considering an Australian real estate investment, it is also important to work with an agent who is experienced and knows the local markets. For example National Property Buyershas purchased more than AUD 500 million for its clients and has a network of trusted local service providers to ensure a smooth property buying experience.

“We live locally in the city you are looking to buy in and have a large network of selling agents. We will search for the property based on your requirements and budget and once you approve the property we negotiate the lowest possible price for you,” Koenig explained. “If you are an investor and require assistance with property management, we can also provide this service.”


Why are overseas investors acquiring luxury real estate in Malaysia?

While the Malaysian property market remains stuck in neutral, international investors are still exploring luxury real estate opportunities in the country. The upscale condominium market remains attractive as a safe investment option. In prime locations, such as KLCC, investors can enjoy yield returns between three and four percent during the next few years thanks to steady rental demand.

Government regulations allow foreigners to buy and own property with few restrictions beyond the MYR 1 million (USD 256,500) minimum purchase price. The freehold nature of the properties and their prime locations mean investors are willing to buy even as the country’s real estate underperforms.

“I would say that foreigners may still be attracted to prime units around the KLCC area in the optimum region of about MYR 1-RM1.5 million,”
former Malaysia Property Incorporated vice president David Shieh explained to the Malay Mail
. “Not many countries in the region or around the world allow foreigners to own freehold properties. Secondly, price per square feet for Malaysian properties is still one of the lowest in the region.”

What luxury real estate does MYR 1 million buy in Kuala Lumpur?

Two-bedroom condo at Setia Sky Residences

Setia Sky Residences
 are a short-drive away from KLCC and condominium units here boast some impressive views. The development is equipped with several amenities including a swimming pool and a fitness centre.

The unit itself comes fully furnished and is on the tenth floor with a balcony facing Titiwangsa Lake. With two bedrooms, three bathrooms and a welcoming kitchen, the space is very attractive to young families.

For investors, the smartly designed condominium combined with a great location makes it ideal for rentals.

Click here to request details

High-rise living near KLCC Park

Stonor 3
 set a new benchmark for luxury real estate in the always popular KLCC Park area. The property features a unique swimming pool and fitness centre layout that adds a distinct flair to the three-storey common area facilities.

Every condominium contains European kitchen appliances, Japanese sanitary ware and Burmese hardwood flooring adding elegance to the space. The two-bedroom, two-bathroom unit is priced at MYR 1.36 million (USD 348,700). While the property does cost a little more than the MYR 1 million minimum overseas buyer purchase price, Stonor 3’s close proximity to international schools and hospitals will likely result in solid demand from renters.

Click here to request more details


Oxley Towers Kuala Lumpur City Centre

Kuala Lumpur welcomes Oxley Towers Kuala Lumpur City Centre – a slick new development.

Singaporean Developer Oxley Holdings have been making moves across the world. Over the last three years they have been taking their development tactics to sites in London, Batam, Myanmar, Dublin and Kuala Lumpur to build residential buildings and in some case as part of mixed-use schemes.

London was their first overseas venture with Royal Wharf in East London, an area of England’s capital that is constantly on developer’s watchful eyes due to its vast potential. The site was bought for GBP 200 million, an astute investment move since half of the units, 811 in total, of the first phase were sold on the first day of the Royal Wharf’s launch.

Next year is forecast to be more of the same as Oxley aim to launch after Chinese New Year SO Sofitel Residences at Oxley Towers Kuala Lumpur City Centre. Consisting of 590 units, this scheme prime central location will be home to two hotels, office space, and over 100,000 sq ft of retail space.

SO Sofitel has a renowned reputation globally. It complements Oxley’s portfolio of hospitality properties that include big brands such as Shangri-La, Ibis and Novotel. Oxley Towers Kuala Lumpur will also house Jumeirah Kuala Hotel and Residences in addition to SO Sofitel Hotel and Residences. This new scheme will be a game changer in Malaysia’s capital city as the quality of residential projects is upped a notch.


Be a part of Hua Hin’s enduring legacy

For more than a century, Hua Hin has been the place Bangkokians retreat to on weekends. The tranquil atmosphere and refreshing sea breeze provide a welcome respite from the intense city life. Sure, the seaside town has grown over the years, but its essence has remained the same.

This legacy is why Hua Hin remains Thailand’s premier second home destination. Everyone from the Royal Family to leading business officials and even international retirees have chosen the city for a summer residence.

Strong demand has seen condominiums and resorts built up and down the Hua Hin beachfront. In fact, only one plot of beachfront land remains for residential development. It is owned by respected developer Proud Real Estate who has truly saved the best for last.

InterContinental Residences Hua Hin is the city’s last beachfront residential development. Not only is it Thailand’s first residential project under the InterContinental Hotels & Resorts brand, but it is also only one of a limited number of hotel branded residences in Hua Hin. The end result is a development befitting of such a rare location.

Familiar beauty

If you have ever visited the impressive InterContinental Hua Hin, the design of the InterContinental Residences Hua Hin will immediately be familiar. Developer Proud Real Estate took everything people have come to love about the world-class hotel and combined it with bespoke features, amenities and services that cater to residents.

Inside a unit at InterContinental Residences Hua Hin

Let’s start with the interior design which embraces the cultural and historical heritage of Hua Hin. The fully-furnished residences are decorated with pieces inspired by the villas of the past. Modern touches have been carefully incorporated throughout, so they do not disturb the overall style. For example, the wooden headboard features a full charging station for electronics on each side of the bed. It’s something you wouldn’t notice on first glance but will be glad to have.

There are spacious one-, two- and three-bedroom units as well as a magnificent penthouse available. Different residences boast different lifestyle benefits. Some are close to the beach, others have a private pool, a few cater specifically to families and a couple provide easy access to the facilities.

Every residence does enjoy unmatched privacy thanks to the detailed layout that avoids cross-facing doors or windows. There is also a balcony equipped with a daybed in each unit where you can take in the surroundings and feel the lovely sea breeze. A limited number also have direct access to the swimming pool.

The exterior is similar to the InterContinental Hua Hin hotel’s colonial-style architecture that is instantly recognizable to anyone who has been to Hua Hin. There is a seven-story building at one end of the project and eight four-story buildings surrounding the center area which contains lush gardens and several swimming pools.

InterContinental Residences Hua Hin has a wonderful flow where it feels as if everything has been crafted to accentuate the private beachfront.

A world-class experience

Nearly 70 percent of InterContinental Residences Hua Hin is dedicated to amenities and green space

The amenities and services at InterContinental Residences Hua Hin are legendary. An emphasis has been placed on serving multi-generation families, a growing and important trend in Thailand. For children, there are a kid’s pool and game room to entertain. Parents will enjoy the jogging track, fitness center and yoga lawn. And grandparents can spend time in the library or at the therapy pool.

Of course, there are also places where the entire family can spend time together, such as the Tamarind theater or on the beach. 111 Social Club is also a part of InterContinental Residences Hua Hin. Here you can enjoy a snack or drink inside a traditional Hua Hin villa overlooking the beach.

A staggering 70 percent of the development is dedicated to gardens, private beach and the other amenities. Space is in abundance allowing you and your family to enjoy a peaceful, private experience. This is complimented by the services made available to residents.

Time is priceless and that belief is why InterContinental Residences Hua Hin offers far ranging services to ensure residents can make the most of theirs. A dedicated Director of Residences and concierge ensures the details are taken care of during you stay so you can focus on the things that really matter.

Weekend getaways are made easy thanks to a check-in service. Your residence will be prepared before you arrive with a full fridge, housekeeping completed and baggage assistance. There is even a valet who can park your car. No moments need to be wasted on superfluous tasks.

An iconic location

The location of InterContinental Residences Hua Hin places you in the heart of the city. The popular Market Village shopping center is directly across from the residences while BluPort shopping mall and Cicada night market are a stone’s throw away. Vana Nava Water Jungle, True Arena and several golf courses are a short drive from the property.

The last chance to be a part of Hua Hin’s legacy

As Hua Hin’s last beachfront residential development, InterContinental Residences Hua Hin is part of the city’s legacy. Not only is the project peerless in terms of design, function and quality, but it is redefining the weekend getaway experience. There has been no other development like this before and will be no other development like this in the future.

The brisk sales at the project highlight just how powerful this opportunity is to lifestyle real estate investors. Proud Real Estate reported that sales were 10–20 percent prior to the COVID-19 pandemic. However, sales have jumped to 40–50 percent during May and June.

The private beachfront at InterContinental Residences Hua Hin

The increase in sales is attributed in part to potential buyers being able to see the showroom in person and get a feel for the wonderful location along the beachfront. Much like InterContinental Hua Hin, InterContinental Residences Hua Hin are set to become part of the city’s fabric. A destination familiar to all and enjoyed by a privileged few.

A limited number of residences, including a penthouse, are still available at InterContinental Residences Hua Hin. However, these will not be on the market for much longer. The question is simple. Do you want to be a part of Hua Hin’s enduring legacy?

If you answered yes, then it is important to act quickly to secure your home in InterContinental Residences Hua Hin. These treasured residences will become family heirlooms passed down from one generation to the next. Few, if any, will be made available after the project has sold out.

For more information, please visit
www.intercontinentalresidenceshuahin.com


Passports present a problem for many ASEAN HNWIs

For wealthy citizens of Singapore and Malaysia, there is no need to worry about their passports. They are ranked as two of the strongest in the world, according to Arton Capital’s Global Passport Power Rank 2018. However, those from the Philippines and Vietnam have relatively weak passports that can restrict travel.

Despite growing wealth, passports in several Southeast Asian countries rank among the weakest globally. Not only does this make simple travel to places such as the EU difficult and costly, but it also hinders overseas educational and work opportunities.

This has seen many high net worth ASEAN passport holders take advantage of Golden Visa real estate investment programmes in Spain, Greece and Portugal. Others look to provide their children with educational opportunities by investing in real estate in Australia or the UK.

For many HNWIs in Southeast Asia, a second passport via real estate investment can be the key to unlocking the world.

ASEAN passport rankings

Singapore

Global passport strength:
 1st

Visa-free travel:
 163 countries

Notable countries with visa requirements:
 Russia, Saudi Arabia

With visa-free travel to the EU and a Visa Waiver Program in place with the US, Singaporeans have freedom of movement unmatched by any other country.

Malaysia

Global passport strength:
 6th

Visa-free travel:
 159 countries

Notable countries with visa requirements:
 USA, Canada

The Malaysian passport is deemed to be just as strong as the US and Swiss passports. Holders have visa-free access to the EU and can apply for Electronic Travel Authority to visit Australia.

Thailand

Global passport strength:
 57th

Visa-free travel:
 76 countries

Notable countries with visa requirements:
 UK, Australia

The Thai passport grants holders visa-free travel to Russia, Turkey and Japan, but the EU requires a visa. The visa process for Thais looking to travel to the USA is known to be very strict.

Indonesia

Global passport strength:
 61st

Visa-free travel:
 71 countries

Notable countries with visa requirements:
 Japan, EU

Hong Kong and Morocco are among the countries Indonesians can travel to without a visa. However, nearly all of Europe, including non-EU countries, requires a visa as well as Australia.

The Philippines

Global passport strength:
 68th

Visa-free travel:
 63 countries

Notable countries with visa requirements:
 South Korea, USA

Taiwan is one of the few places Filipinos can visit visa free. Unlike other countries, citizens of the Philippines have far more opportunities to work overseas and employment visas are easier to come by.

Vietnam/Laos

Global passport strength:
 80th

Visa-free travel:
 51 countries

Notable countries with visa requirements:
 USA, EU

The passports of Vietnam and Laos rank in the same spot in terms of strength. The Laos passport does offer visa-free access to Russia and Mongolia while Vietnamese passport holders can travel to Chile without a visa.

This article on ASEAN passport strength can be found in Dot Property Magazine’s Southeast Asia Wealth And Outbound Investment Report 2018.

Click here to read it
.


Pay to buy in Australia

From the start of December 2015 all foreign buyers and investors of Australian property must now pay a fee before their foreign investment application will be processed. Stricter penalties have been introduced by the Australian Taxation Office (ATO) for those who break the rules.

The recent changes introduced by the Federal Government are designed not to deter foreign investment into Australia, but rather ensure current rules that limit foreign investment in established dwellings are enforced.

Until now there has been poor policing by the small team at the Foreign Investment Review Board (FIRB), resulting in limited penalties imposed on those who breach the rules. For a long time, the framework was undermined due to poor data collection, along with a lack of audit, compliance and enforcement.

Given no fees were collected on application, it made it quite difficult for the FIRB to justify committing more Australian tax-payer resources, despite the number of foreign investment applicants growing almost three-fold over the course of 2013-14.

Over the same time, and as residential property prices rose significantly in many suburbs across the country, the Australian public had become increasingly concerned that the influx of foreign purchasers were having a direct impact on mainstream (established) house prices.

This placed pressure on the now former Treasurer, Hon Joe Hockey MP, to provide clarification on the role foreign investment plays in residential property.

After a lengthy and comprehensive inquiry by the House Economic Committee, legislation was slated in late November 2015 with a stronger foreign investment regime coming into effect from December 1, 2015.

Foreign investors will now pay a fee to the ATO before their foreign investment application to buy residential property is processed.

For properties valued at AUD$ 1 million or less an application fee of AUD$ 5,000 will be collected. If the property is valued at more than AUD$ 1 million, AUD$ 10,000 is payable with an AUD$ 10,000 incremental fee increase per additional AUD$ 1 million in property value.

The fees apply for each application submitted, and become uncapped if the property is valued at more than AUD$ 1 million.

Fees are paid on application and do not provide any assurance of securing the property.

Stricter penalties now make it easier to pursue foreign investors that breach the rules.

Criminal penalties have increased from AUD$ 90,000 to AUD$ 135,000 for individuals, and divestment orders are supplemented by civil pecuniary penalties. Infringement notices for less serious breaches of the residential property rules also apply. Third parties who knowingly assist a foreign investor to breach the rules are now subject to civil and criminal penalties.

Property developers can apply for a new dwelling exemption certificate to sell new dwellings in a development of 50 or more residences to foreign investors however, the Government has tightened the rules around the use of new dwellings exemption certificates by limiting the value of all apartments that can be bought by a single foreign investor to AUD$ 3 million in the one development.

If foreign investors want to purchase apartments above this value they are required to seek individual approval.

This story was written by Michelle Ciesielski of real estate firm Knight Frank and has been reproduced with their kind permission.


Penang property challenges

Penang property saw a drop in both transactions and values during 2015 in data recently released however
recent reports say 2016 has seen increasing demand
.

In its new
Penang Property Market Report
, real estate firm Knight Frank recorded the total volume of transactions for all sectors in the State of Penang for 2015 registered a drop of 15.6 percent against 2014.

Similarly, in terms of value of transactions the drop was recorded at 15 percent.

The picture now for Penang property is likely to be different with many agents and developers in the state reporting a buoyant marrket.

Residential transactions in the State of Penang
, which made up 70.9 percent (72 percent in 2014) of total volumes, recorded a drop of 16.9 percent and 18.5 percent in terms of the volume and value of transactions done respectively for 2015 versus 2014.

Only the industrial and others sub-sectors registered growth of 25.4 percent and 215.4 percent respectively.

Penang International Airport, which has reached capacity of accommodating 6.5 million passengers per annum, has been earmarked for expansion to cater for increased 10 million passengers per year. Malaysia Airports Holdings Bhd

The first phase that will include the completion of 1,500 parking lots will be operational in the first-quarter of 2017, while the second phase will be opened in 1Q 2018.

New investments and re-investments into Penang’s industrial sector have included Boston Scientific’s new facility in Batu Kawan Industrial Park which will be operational by 2H 2017; SAM’s reinvestment of RM 100 million between 2016 and 2018 – RM 70 million to build a new 120,000 sq ft facility in Bukit Minyak and RM 30 million on its Penang plant for aerospace work; Robert Bosch’s RM 66 million expansion of its Penang plant; and Tek Seng Holdings Bhd, a solar cell maker, RM 237 million to expand its triple its production capacity.

High-end Condominiums

Hunza Group, a well-established and reputable property developer in Penang, has launched ALILA² as a sequel to their successful Alila Horizons and Alila Homes in Tanjong Bungah.

ALILA² is sited away from the hustle and bustle of Georgetown yet is close enough to the city, Batu Ferringhi, international schools, medical facilities, retail outlets and the varied dining choices Penang is known for.

ALILA² is a low density modern resort-inspired condominium development comprising two towers sitting atop a six-storey podium over 9.8 acres of lush landscape.

The two towers have been designed to comply with Malaysia’s Green Building Index (GBI) Certification.

The comprehensive range of recreational facilities includes infinity pool with Jacuzzi beds, seats and aqua gym equipment; a two-storey lounge area with BBQ pit, dining tables and seating, and an entertainment deck; tennis courts, a half-size basketball court and themed pocket spaces with feature shelters, giant swings and cocoon seating.

Expected to complete by 4Q 2017, ALILA² offers 270 large, semi-furnished apartment units with prices starting from RM 790 per sq ft ad rising to RM 1,066 per sq ft for typical units sized from 1,905 sq ft to 3,235 sq ft, and from RM 993 per sq ft to RM 1,000 per sq ft for penthouse and duplex units sized from 3,900 sq ft to 5,789 sq ft.

Optional furniture packages are available and a minimum of two car parking bays are provided for each unit.

Buyers of the high-end condominium sector have higher expectations; thus, developers of many newer launches offer units which are fitted with built-in cabinets to bedrooms, kitchen cabinets, electrical items, as well as light fittings, air-conditioning units and quality sanitary fittings.

There were very few recorded transactions of larger sized condominiums with built-up areas from 3,500 sq ft to 6,000 sq ft in the secondary resale market in 1H 2016.

Transactions in 1H 2016 of such sized units in Tanjong Bungah range from RM 446 per sq ft to RM 626 per sq ft (both at The Cove) and up to to RM 793 per sq ft.

Smaller-sized units at Gurney Paragon were resold at RM 808 per sq ft to RM 1,150 per sq ft, whilst at Quayside, Seri Tanjong Pinang, units were resold at prices varying from RM 768 per sq ft to RM 1,138 per sq ft during the first six months of 2016.

Knight Frank said that asking rents are noted to be slightly lower when compared to last year.

For larger sized units in Tanjong Bungah, asking rents generally range from RM 1.10 to RM 2.30 per sq ft per month, whilst some landlords are still holding onto high asking rents of RM 2.80 per sq ft to RM 2.95 per sq ft per month.

For similar sized units in Gurney Drive, asking rents vary from RM 1.80 per sq ft to RM 2.60 per sq ft per month.

For smaller sized units in Tanjong Tokong and Gurney Drive, asking rents are in the range of RM 2.20 per sq ft to RM 2.90 per sq ft per month, whilst some landlords have higher asking rents of RM 3.50 per sq ft to RM 4.40 per sq ft per month.

Outlook

With the continuing challenging global and national economic environment, Knight Frank reported that the negative Penang property market sentiments has remained.

It said the scenario is not expected to improve in the immediate future.

Further softening and consolidation of the
residential sector
 is expected with increasing supply and poorer take up rates.


Penang takes top spot

Penang has overtaken Kuala Lumpur and the Klang Valley as the most attractive region for commercial investment, garnering 67 percent of the overall responses in a
survey by real estate firm Knight Frank
.

Kuala Lumpur’s CBD (Golden Triangle), which was the top investment choice in 2015, has retreated in the rankings to fourth position with 49 percent of responses after KL Fringe/Klang Valley (56 percent) and Johor/Iskandar (55 percent).

The healthcare/institutional segment is the most attractive sub-sector for investment, garnering 69 percent of responses followed by the hotel/leisure segment (65 percent), logistics/industrial (52 percent) and retail (50 percent).

The least attractive segment for commercial investment was the office sub-sector with a poor 36 percent response.

Penang is currently the most attractive investment region for hotel/leisure (86 percent) and healthcare/institutional (79 percent) developments according to Knight Frank, possibly due to George Town being inscribed as one of UNESCO’s World Heritage Sites and the popularity of the state for medical tourism.

The survey targeted some 700 respondents at senior management level across the Malaysia property industry. About half of the respondents (55 percent) were property developers with the balance comprising a mix of commercial lenders and fund/REIT managers, reflecting players in the commercial real estate market.


Penang’s heritage should protect all

Questions have been raised as to how safeguard the shophouses of Penang’s heritage.

George Town, the capital of Penang, is fast becoming a property hot spot. This area is lined with original Chinese pre-war shophouses brimming with original features from ornate wooden shutters at the window to impressive high ceilings and grand rooms. Over the years there has been a gradual increase in these being restored to their former glory as the attraction of these properties rises.

Appealing to investors, many rows have been snapped up by
mainly Singaporean investors
, who see the value in these rather uniquely designed properties. The areas itself is preserved with a requirement for the upkeep of the shophouses which is forcing some owners to sell, according to the Penang Chamber of Commerce. The common notion is that shophouse owners are selling to profit for their increasing interest but this may not be the case.

The selling of shophouses not only means owners give up on their inheritance, but it also pushes out the traditional trades of Penang. As a result locals have raised questions relating to the allowance of foreigners purchasing properties. The Penang government have refuted that the number of foreigners involved in the purchases is inaccurate, and the numbers have somewhat reduced thanks to raising of the minimum price bracket to RM 2 million for foreigners purchasing property.

It appears that a balance needs to be reached to ensure that Penang’s heritage remains by maintaining shophouses and not leaving them empty whilst simultaneously protecting the needs of both owners and tenants. Rent controls has been discussed in order to protect existing tenants from escalating rents as a result of increased property prices, which are considered vital as the businesses that operate in shophouses have created the vibrant atmosphere that has made the area so popular today.


Philippine central bank predicts property market recovery next year

Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, is the latest to predict a property market recovery in the country. They foresee it taking place in 2022 as part of a larger rebound in overall economic growth.

“The BSP anticipates that activity in the real estate market will recover in line with rebound in overall economic growth in 2022,”
BSP Governor Benjamin Diokno was quoted as saying by Philstar Global
. “Real estate demand slipped due to the uncertainties brought about by the global health crisis as capital values for office and residential units in the country’s major commercial and business districts slumped in 2020.”

While the past two years have been a struggle, the BSP did note that the real estate and construction sectors are already on the road to recovery having inched upward during the second quarter of this year.

However, more is needed for a complete Philippine property market recovery. A full return to work and tourism resuming are a few of the needed factors.

Softening travel restrictions likely to aid property market recovery

As travel restrictions loosen and foreign employees of Philippine offshore gaming operators (POGOs) return to the country, real estate will likely pick up, according to Leechiu Property Consultants CEO David Leechiu,
He noted that the benefits will be gradual as the companies look to reestablish themselves before scaling up activity
.

“With travel restrictions easing up, we anticipate POGOs to start reopening their offices and begin to grow by the second quarter of 2022,” Leechiu was quoted as saying by the Philippine News Agency. “Right now, they are in the moat of stability. But when they start expanding again, I think it depends on the rate of expansion, they could easily wipe out all these vacant spaces in the market in the next two years.”

No firm plans are in place just yet, but a tourism reopening scheme is expected to be announced shortly. It is believed that vaccinated foreign tourists from countries on the Philippines COVID-19 green list would be allowed to enter.

Related:

Vaccinated foreign tourists could soon be welcomed back to the Philippines


Philippine developer SMDC hailed for its Corporate Social Responsibility efforts

The Special Recognition Award for Corporate Social Responsibility at the
Dot Property Philippines Awards 2021
 was bestowed upon a homebuilder making positive contributions that extend beyond property.

SM Development Corporation’s efforts know no bounds. Recently, the developer teamed up with local government units and the Philippine Red Cross on a vaccination program for all its residents and employees. Throughout the pandemic, SMDC has found ways to give back.

“We have medical missions, and we also have bloodletting. We even worked with the Red Cross on blood drives during the COVID-19 pandemic and we able to donate a lot of blood which was needed,” SMDC President Jose Mari Banzon said during an interview with Dot Property Group.

However, that is just one of the reasons why they are known as The Good Guys. SMDC continues to find new and inspiring ways to support local communities, such as its efforts to promote local farmers and home-based entrepreneurs by creating markets.

“The local farmers can bring produce and sell it on the weekends at market stalls in SMDC developments. This provides them with extra income,” Banzon explained. “Of course, residents are encouraged to sell their own products such as baked good. As a matter of fact, we have had a lot of OFWs who lost their jobs overseas and came back to Manila. They have joined our weekend markets and it turns out they don’t even want to go back because their income is very secure.”

By fostering community spirit, promoting healthy lifestyles and developing secure and safe neighborhoods, SMDC truly are the Good Guys. They are worthy winners of the Special Recognition Award for Corporate Social Responsibility at the Dot Property Philippines Awards 2021.

Read More:

Here are the winners from the Dot Property Philippines Awards 2021


The Philippine hotel sector provides opportunities for investors to capitalize on a travel rebound

While tourism remains down across the globe, the United Nations World Tourism Organization has noted that it should return to pre-pandemic levels sometime in the next four years. For investors looking to capitalize on this rebound, the Philippine hotel sector provides a number of opportunities.

Many hospitality properties have decreased in value or are in the hands of owners willing to sell for less. Meanwhile, some hotels have been able to tap into new markets or found other ways to bring in revenue during the COVID-19 pandemic, which may be attractive to investors wanting to keep the lights until international travel resumes.

“The hotel and tourism sectors are some of the worst-hit real estate asset classes across the world. Hotels have been forced to pivot, innovate, and explore financing options to sustain their operations. We have seen an increasing number of hotels in the Philippines who are now looking at repurposing their spaces for other uses, such as office and residential, and retrofitting their facilities to address safety and health protocols,” Rick Santos, Chairman & CEO of Santos Knight Frank
,
 explains.

Related:

The need for tourism-focused real estate in the Philippines

Philippine hotel sector eyes reopening

There is still no clear timeframe for when the country will reopen to overseas arrivals once more, but the Department of Tourism (DOT) continues to explore all options available. For now, the Philippine hotel sector remains in a holding pattern where it can only rely on domestic guests.

However, there is hope international tourism will resume sooner rather than later. Verna Buensuceso, OIC-Undersecretary for Tourism Development of the Department of Tourism confirmed that government is preparing for entry protocols for fully vaccinated travelers while working with COVID-19 inter-agency taskforce to establish more relaxed rules for visitors.

The Phuket Sandbox in Thailand is a possible tourism model that could eventually be adapted for popular locations in the Philippines. That program allows for vaccinated international tourists to visit the island without needing to quarantine assuming they meet additional criteria and follow set rules.

Related:

When will Bali, Phuket and other destinations in Southeast Asia reopen for quarantine-free travel?


Philippines Best Real Estate Agencies 2021 celebrates two property industry leaders

Tricia Liu Properties was named as one of the Philippines Best Real Estate Agencies 2021

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

The Philippines Best Real Estate Agencies 2021 celebrates those firms who offer outstanding service and support to customers. This year, the Dot Property Philippines Awards recognized two organizations leading the way in the country.

Tricia Liu Properties

Tricia Liu Properties is a dynamic agency that embraces new and innovative ways to help property seekers. From its popular social media channels to a young, motivated team, the agency is on the cutting-edge of real estate in Metro Manila.

“The key values we always take note of are excellence, integrity, organization and, most importantly, building relationships. It is about going above and beyond the real estate industry to create genuine human connections. For me, all clients are VIPs,” Erica Patricia Liu, Owner of Tricia Liu Properties, said.

Edukate Group

Edukate Group

Edukate Group offers a wide range of services and has developed an outstanding reputation for being knowledgeable about the real estate market. The agency works diligently to assist customers in order to meet their unique property requirements.

“Me and the entire team are honored to win this award. It inspires us to do even more and to do even better for those who want to acquire property in the Philippines,” Katarzyna Maria Brzezinska, Owner and Founder of Edukate Group, proclaimed.


The Philippines’ Best Real Estate Agencies for 2022 announced

Familiar faces found themselves among the winners of Philippines’ Best Real Estate Agencies 2022 as both Tricia Liu Properties and Edukate Group Inc. took home the honor for a second consecutive year. They were joined by 2019 winner Pinnacle Real Estate Consulting Services Inc.

Tricia Liu Properties

Tricia Liu Properties is a dynamic agency that embraces new and innovative ways to help property seekers. From its popular social media channels to a young, motivated team, the agency is on the cutting-edge of real estate in Metro Manila.

Edukate Group Inc.

Edukate Group offers a wide range of services and has developed an outstanding reputation for being knowledgeable about the real estate market. The agency works diligently to assist customers in order to meet their unique property requirements.

Pinnacle Real Estate Consulting Services Inc.

Pinnacle Real Estate Consulting Services is dedicated to providing unparalleled real estate services that meet the highest ethical and performance standards for its local and multinational clients. The company’s primary focus is on real estate asset management and brokerage; real estate closing and advisory services; and non-performing loan asset management.

Read More:

SMDC and RLC Residences lead an impressive collection of winners at the Dot Property Philippines Awards 2022


In photos: A look back at the Dot Property Thailand Awards 2018

The Dot Property Thailand Awards 2018 saw more than 150 real property leaders pack the Radison Blu Plaza Bangkok on 16 August. A total of 24 winners were honoured on the night with firms from Bangkok, Phuket, Hua Hin, Krabi, Pattaya and Isan now able to proudly call themselves Thailand’s best.

See more:
Dot Property Thailand Awards 2018 honours 24 of real estate’s best

Miss the festivities? Here are some of the best photos from the evening. Scroll down for the full list of winners from the Dot Property Thailand Awards 2018.

1
 of 15

Dot Property Thailand Awards 2018 list of winners:

Developer Categories:

Best Developer Bangkok – All Inspire Development

Best Developer Phuket – Blue Horizon

Development Categories:

Best Investment Project Phuket – Grand Himalai

Best Mixed-Use Project Phuket – Grand Himalai

Best Condotel Phuket – Mai Khao Beach Condotel

Best Affordable Condominium Phuket – Mai Khao Beach Condotel

Best Villa Architectural Design Phuket – Utopia Maikhao Seaview Villas

Best Mid-Range Condo Development – Bayview Paradise

Best Waterfront Development Krabi – Koh Jum Beach Villas

Best Luxury Villa Development Hua Hin – Sivana HideAway

Best Villa Development Hua Hin – Red Mountain

Real Estate Contributors Category

Best Construction Company Phuket – Utopia Development

People’s Choice Award for Best Developer Thailand

All Inspire Development

Thailand’s Best Real Estate Agencies 2018 presented by Leading Real Estate Companies of the World® winners:

Accom Asia

Bangkok Residence 88

Century 21 Skylux

Horizon Homes

Isan Real Estate

Pattaya Foreigner Service

Pattaya Realty

Phuket Buy House

PhuketCondo.Net

St. James Properties

Vauban Real Estate

Click here to read about the winners


Phuket property market demand strongest in Patong and Karon

*All data from the Dot Property network

What type of property are buyers looking for on Phuket? What is the preferred price point? We tracked inquiries made through the Dot Property network of websites Between January 2018 and May 2019 to find those answers.

The most in demand property during this time were one-bedroom condominium units in Patong with an asking price of THB3-5 million. Meanwhile, the most inquiries for detached housing, which includes villa properties, was Cherng Talay.

Demand for houses/villas in Phuket by price

Phuket had been a market dictated by noticeable high and low seasons in the past, but a levelling out has taken place in recent years. This is due in part to the island’s booming tourism sector. According to Airports of Thailand, Phuket welcomed almost nine million passenger arrivals in 2018, an eight percent year-on-year increase

That being said, most areas do see an increase in inquiries during the traditional high season (December-February). Some locations also recorded a secondary surge in demand between July and September and this can be partially attributed to people making plans for the high season.

1) Patong

Most in-demand property type:
 1-bedroom condo

Most in-demand price:
 THB3-5 million

Busiest months:
 November 2018, December 2018

2) Karon

Most in-demand property type:

1-bedroom condo

Most in-demand price:
 THB3-5 million

Busiest months:
 January 2019, February 2019

3) Kata

Most in-demand property type:
 1-bedroom condo

Most in-demand price:

THB3 million and under

Busiest months:
 July 2018, August 2018

4) Kamala

Most in-demand property type:
 1-bedroom condo

Most in-demand price:

THB3-5 million

Busiest months:

January 2019, August 2018

5) Cherng Talay

Most in-demand property type:
 2-bedroom house/villa

Most in-demand price:
 THB5 million and under

Busiest months:
 December 2018, January 2019

6) Rawai

Most in-demand property type:
 3-bedroom house/villa

Most in-demand price:
 THB8-15 million

Busiest months:
 March 2019, September 2018

7) Nai Harn

Most in-demand property type:

3-bedroom house/villa

Most in-demand price:
 THB5-8 million

Busiest months:
 March 2019, August 2018

9) Bang Tao

Most in-demand property type:
 3-bedroom house/villa

Most in-demand price:
 THB8-15 million

Busiest months:
 April 2019, September 2018

9) Laguna

Most in-demand property type:
 4-bedroom house/villa

Most in-demand price:
 THB8-15 million

Busiest months:
 April 2019, August 2018

10) Layan

Most in-demand property type:

3-bedroom house/villa

Most in-demand price:

THB15-30 million

Busiest months:
 May 2019, March 2019

11) Surin

Most in-demand property type:

1-bedroom condo

Most in-demand price:

THB3 million and under

Busiest months:

November 2018, January 2019

Phuket condo demand sorted by price


The Phuket property market looks to rebound in 2021

This article on the Phuket property market appears in the Dot Property Thailand Real Estate Outlook 2021. You can read the report
right here
!

The Phuket property market was hit hard by the COVID-19 pandemic. With 30 million fewer tourists arriving in Thailand in 2020, the key driver of the island’s real estate sector vanished almost overnight. Despite this, developer Botanica Luxury is confident it’s a matter of when and not if these buyers return.

“We firmly believe clients who have been waiting for Thailand to reopen are going to return quickly. The market will gradually return to normal within six months to a year,” Khun Attasit Intarachooti, Botanica Luxury CEO, noted. “We do not expect fast sales as we saw in the past, but we do expect people to come down to Phuket as they search for an investment and holiday home.”

Botanica did see more buyers from Bangkok last year and the developer expects this trend to continue in 2021. One reason for this is the increased adoption of work from home that has provided Bangkokians with the ability to move away from the city. Meanwhile, increased awareness of wellbeing has made villas and other low-density developments more appealing.

“The idea of work from home has made people realize that we actually can work from anywhere with an internet connection, so you might not need to stay in the capital like Bangkok anymore. This benefits places like Phuket,” Khun Attasit pointed out. “I also believe that COVID-19 has affected how people choose their residences. Many clients are now looking for low-rise residential or single houses.”

The Phuket property market may face more challenges in 2021. However, Khun Attasit noted that Thailand’s response to the COVID-19 pandemic may actually help the real estate sector in the long term.

“The fact that Thailand reacted quite fast to the situation has also helped improve the country’s perception in the eyes of overseas clients. Customers believe that Thailand is a safe play to both live and invest,” Khun Attasit concluded.

For more insights,
be sure to read the Dot Property Thailand Real Estate Outlook 2021
!


Phuket rethinks tourism strategy to support long-term stability

Phuket officials are looking to ease restrictions on yachting which could help the property market

The COVID-19 pandemic has been especially hard on Phuket. The island’s reliance on visitors has been painfully exposed with an estimated 80 percent of the province’s economy dependent upon tourism. According to Provincial Governor Narong Woonsew, the cost of the outbreak for Phuket is currently THB160 billion.

The Bangkok Post reported that only five million people will visit Phuket in 2020, down sharply from the 14.4 million arrivals in 2019. The downturn has also negatively affected the Phuket property market with some overseas buyers delaying residential unit transfers due to travel restrictions.

“Since I have been in the property business, I’ve never experienced anything worse than this crisis. Even Sars, avian flu and the tsunami were incomparable with the coronavirus,”
Boon Yongsakul, Phuket Real Estate Association Vice President, told the newspaper
. “It is a very challenging year for developers in Phuket. They should monitor financial liquidity. Some of them have shifted to smaller projects with less than ten units a site.”

The short-term financial hit is significant but work has also begun to ensure Phuket doesn’t find itself in this position again. The local government is already looking at ways to diversify and promote new sectors with marinas; education; health and wellness; tuna exports; seafood and gastronomy; sports; and events all highlighted as future growth areas.

“The new revenue drivers will not replace the conventional tourism businesses but build on top or add value to them. Tourism, after all, is a long-established industry with the resources and capability to sustain Phuket’s economy well into the future,”
Chernporn Kanjanasaya, Phuket Industry Council Chairwoman, said in an interview with the Bangkok Post
. “However, the province must be better equipped and more resilient to crises and that can be achieved by having a broader portfolio of industries to offset the economic risks.”

Will the Phuket property market benefit?

Not all of the earmarked sectors will benefit the Phuket property market, but a few will help. The most obvious are education and health and wellness. If the island can build up these areas further, it would be a more appealing place for long-term residents.

Those currently living in Hong Kong and Singapore are looking at relocation options amid economic uncertainty and social unrest. Better schools, along with improved healthcare infrastructure, could make Phuket an attractive place to live for families still wishing to be relatively close to their home countries.

Meanwhile, expanding Phuket’s already highly regarded Marina facilities would support Thailand’s ambitions to bring in tourists with higher-spending power.  According to Chernporn, around 3,600 people visit Phuket aboard yachts each year, spending an average of 60 days on the island. This group brings the province THB21.6 billion in revenue.

There are currently two major yachting facilities in Phuket: Royal Phuket Marina and Phuket Yacht Haven. However, promoting the sector over the years has been held back by legal restrictions that the local government hopes to identify and ease to support the economy.


Phuket villa rentals: 3 things to look for when selecting a holiday property

Himmapana Villas, winner of Best Architectural Villa Design Phuket at the Dot Property Thailand Awards 2017, offers full-service rental stays

There are a lot of amazing Phuket villa rentals currently listed on
Thailand Property
. What many people don’t realise is how difficult finding the perfect one can be. Much like searching for a home, the options available can be overwhelming.

And while we try to make searching Phuket villa rentals easy, you can make the process even simpler by doing a little homework. Here are a few things to consider when searching for the ideal villa rental in Phuket.

See more:
The View is no ordinary Phuket villa development

3 things to look for when searching for Phuket villa rentals

1) Location

The view from a villa in Patong currently listed on Thailand Property

To beach or not to beach, that is the question. Of all the Phuket villa rentals out there, beach units are always the most in demand. And this means they are also the most expensive. It’s possible to get more bang for your buck further away from the beach. Let’s take a quick look at two impressive Phuket villas for rent that highlight the difference.

This two-bedroom villa overlooking Patong Beach
 fetches THB 250,000  (USD 7,700) per month during high season. For the same price, you could also
rent a spacious, four-bedroom
villa
 less than ten-minutes away from the white sands of Bang Tao Beach. Both are great depending on what you want.

And that is why you must prioritise just how important location is before searching through Phuket villa rentals.

2) Service

Picasso Villas in Phuket offer daily cleaning with cooking available along with unlimited facilities use

Not all Phuket villa rentals include service. Some,
such as the picturesque Picasso Villas
, have staff on hand to provide cleaning service and operate more like a hotel. Other rentals feature nothing more than the villa. Meanwhile, some properties offer service for an additional fee. This is a detail you will want to organise before arriving on your Phuket holiday.

See more:
The most interesting villas in Phuket

3) Agent

Who you rent the villa from matters just as much as the property itself. You’ll find no shortage of individuals claiming to represent various Phuket villa rentals, but in reality they’re simply a third party who will try to book a property on your behalf. We strongly advise using reputable, verified agents who have a track record of working in Phuket.

Phuket
Hello
 is one such firm. The agency offers a selection of exclusive holiday villas and private homes for rent throughout Phuket. St James Property,
named as one of Thailand’s Best Real Agencies 2018
, is another company known for its outstanding work in Phuket.

Looking for a Phuket villa to rent?
Click here to start your search
!


Phuket villa sector slowdown

Prime locations and unique selling points will become increasingly important in the Phuket residential market, according to a report from one real estate firm.

Knight Frank (Thailand) noted that Phuket’s property and real estate market it is not bright, according to Nattha Kahapana, Executive Director to Knight Frank Phuket.

The real estate firm said there is a total supply of 11,177 units, 1,654 of which were launched during 2015. Meanwhile there were cumulative sales of 7,393 condominium units between 2007 and 2015, representing a 64.89 percent sold rate over that period.

Nattha said that a recent drop in demand has been caused by the slowdown of the world’s economy, as well as the Ruble depreciation forcing many Russian buyers to disappear from the market.

He also pointed out that the villa market in Phuket has also slowed with only 176 villa units sold during 2015 compared with beween 220 to 250 units sold annually between 2012 and 2014.

However, he noted that it is quite interesting to see average selling prices of super-prime villas launched during 2015 rising as high as US$ 7 million to US$ 10 million per unit – in contrast to earlier launched units which were sold at between US$ 3 million to US$ 5 million each. These new super-prime villas offer sea views, with up to 8-bedrooms. Each occupies land that is 2 rai or larger. These villas are also managed by international hotel chains.

Nattha added that Phuket is running short of beachfront and sea view land for future development of villas. Developers should take into account prime locations and unique selling points of their new projects, he concluded.


Phuket’s newest project launch allows investors to discover the island’s hidden gem

From left to right: Dr. William Lau, Director of Thai-Chinese Property Holdings; Marciano Birjmohun, Managing Director of DMRD Asia; Thomas Darby, Property Manager of Aplan Properties; and Andre de Jong, Vice President, Operations, South East Asia and Pacific, Radisson Hotel Group.

Mai Khao remains Phuket’s hidden gems. But a new upscale property development to be managed by the world-famous Radisson brand could help introduce area to a global audience. Thai-Chinese Property Holdings and Aplan Properties teamed up to launch Radisson Phuket Mai Khao Beach. Both firms are confident the project will be popular with investors and guests alike.

Located north of Phuket International Airport, Mai Khao is home to five-star hotels and has numerous attractions. Dr. William Lau, Director of Thai-Chinese Property Holdings, noted that the long beach and green surroundings of Mai Khao make it popular among visitors to Phuket even if it is not as well known as Patong or other places on the island.

“There is no need to deal with traffic when travelling to Mai Khao from the airport. Since it only takes 15 minutes to get to Mai Khao, more visitors are now choosing to stay here” Lau stated. “We are more than confident that our collaboration with professional business alliances, such as Aplan and Radisson Hotel Group, will surely attract Chinese and Southeast Asian investors and visitors”

The strong hotel brand, reputable developer and freehold ownership all make the Radisson Phuket Mai Khao Beach an attractive investment. Additionally, the ownership scheme provides investors with a guaranteed yield of six percent during the first three years with a revenue sharing model to be introduced after that. This is predicted to provide a five percent net yield annually.

Work on Radisson Phuket Mai Khao Beach will start in 2020

“This project can be seen as a trophy asset thanks to the brand and the fact it is one of only a few beachfront developments being launched in Phuket at the moment,” Marciano Birjmohun, Managing Director of DMRD Asia, said. “And, of course, being a buy-to-let investment helps. There continues to be global demand for Thai real estate, but many people want a property that is managed for them. They don’t want to have to take care of it. These buy-to-let opportunities are rare in Thailand, so this is something investors respond positively to.”

Birjmohun added, “Project sales for Radisson Phuket Mai Khao Beach will launch in Hong Kong and Macau before moving to India and China. Radisson is a very well-known brand in both China and India which helps overcome some of the challenges facing those markets such as the strong baht. Thai investors are also one of our potential markets as they will be familiar with the brand and location.”

Construction on Radisson Phuket Mai Khao Beach will start during the first quarter of next year with the THB1.6 billion development expected to open in the first quarter of 2023.


The Piazza at The Grand Citygate Davao from Grand Land Inc. nabs a pair of awards

The Piazza at The Grand Citygate Davao from Grand Land won two awards this year

Best Mid Range Condo Development

Best Investment Property Davao

Davao is one of the Philippines most exciting real estate markets. The area is full of potential and has grown impressively over the past decade. But it still lacks the quality developments that can be found elsewhere in the Philippines. The Piazza at The Grand Citygate Davao is changing that, however.

Launched by decorated homebuilder Grand Land, this condo development is bringing a level of excellence and innovation not seen anywhere else in the region. It all starts with the concept behind The Piazza at The Grand Citygate Davao.

Grand Land selected a prime location next to Gaisano Grand Mall and then carefully crafted a residential development that would ensure residents could recharge their batteries at the end of each day. That means everything one could need is close by, but home life feels disconnected from the hustle and bustle.

The Piazza at The Grand Citygate Davao boasts a unique design featuring a massive courtyard space that hosts a wealth of amenities. Meanwhile, units have been created with modern lifestyles in mind. An example of this can be seen with each residence having a balcony, a feature not always found in condominiums.

While offering residents a lot, Grand Land made sure the project offers outstanding value for money. This is something the developer takes great pride in as it strives to provide buyers with the best without breaking the bank.

The Piazza at The Grand Citygate Davao is an incredible project which was honored at the Dot Property Philippines Awards 2022. It took home both Best Mid Range Condo Development and Best Investment Property Davao. The awards are the latest for Grand Land who has collected numerous honors over the years,
including Best Developer Cebu at the Dot Property Philippines Awards 2021
.

Read More:

SMDC and RLC Residences lead an impressive collection of winners at the Dot Property Philippines Awards 2022


Plea for stamp duty to be waivered

Experts call for the loosening of taxes in order to help boast the market.

Every year the Real Estate and Housing Developers Association (Rehda) compile a list of all the items they want the government to consider in order to aid the property industry. This year at the top of Rehda’s list is a request for stamp duty on properties to be waived. A plea made assuming that the government is in a position to be able to afford to do this.

Stamp Duty is due to be increased from 3 to 4 percent for any property priced over MYR 1 million as of 1 January 2018. An amount that pushes up the costs associated to owning property. Developers are wary of this hike that they fear will dampen transaction numbers.

As of 1 April 2015 developers are also subject to Goods and Services Taxes of 6 percent for construction materials and services. Whilst residential properties avoid this tax, the eradication of stamp duty will help make properties more affordable. This will enable more
first time buyers
 to reach the first rung of the property ladder. Subsequently having a knock-on effect to the success of developers.

Additional property taxes include Real Property Gains Tax (RPGT). This tax is applicable to properties that are sold within six years of when it was purchased. A tax to deter investors from flipping properties that contribute to rising property values.

Due to rising property prices the age of children moving out of home has risen compared to previous generations. This is because salaries are not rising at a similar rate as property taxes. Additionally more parents are having to help secure property for their children by providing a deposit for the purchase. Prime Minister Najib Razak is trying to help this with his announcement of eradicating stamp duty for first time buyers should they purchase property under MYR 300,000.


Plea to help first time buyers

Redha have requested that the government takes action to help first time buyers.

First time buyers are the one demographic who often find it the hardest to reach the first rung of the property ladder. Encouraged to invest in property to
safeguard their future
 much of the younger population are still determined to own their piece of property with
Malaysians leading the pack globally
 wanting to fulfill this dream. However first time buyers face challenges to reach this goal. Saving for a deposit and ensuring that they sufficient funds to pay all necessary taxes are reasons for this.

Hence the Real Estate and Housing Developers’ Association (Rehda) has made a plea to help boast first time buyers chances. Suggesting a combination of factors to the government. These include offering this segment of buyers a lower mortgage interest rate. Plus a longer term for the loan to help ease the repayments. This is on top of easing regulations for properties under MYR 500,000.

This according to Redha’s president, Datuk Seri Fateh Iskandar Mohamed Mansor, would state these suggestions would assist those first time buyers who have “financing issues”. At the same time he said that the MyHome Scheme already in place is a success. Implemented by the federal government it offers a MYR 30,000 incentive for every built affordable home. Fateh Iskandar made this comments in a bid to help locals compete with investors from China who are keen to snap up Malaysian property sometimes leaving the domestic market behind.

On top of this he also asked the government to looker closer at existing housing policies. Challenges arise when building property due to varying policies on a state and federal level. This he feels has created a “bottleneck in housing supply” which only goes to hinder first time buyers further. Plus Fateh Iskandar final request was to address where affordable housing is built. Stating that many are situated in unsuitable locations thus they do not appeal to the market. A result of developers being encouraged to build in these areas in order for the development to be profitable. He said that the government should considering using their own land for affordable housing.