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Asia Pacific

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​​Global Real Estate Transparency Index 2016

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The most improved region

The Asia Pacific region continues to make strides in transparency, but advances are not uniform across the region with a wide disparity still persisting between markets. Australia and New Zealand have maintained their positions atop the regional ranking and in the global ‘Highly Transparent’ category. At the other end of the spectrum, Myanmar has held onto the title as the least transparent market in Asia Pacific, but moderate progress has been made following significant economic and political reforms.

Asia Pacific Real Estate Transparency Index, 2016

 

China and India – based on Tier 1 cities
Source: JLL, LaSalle Investment Management​​​​​​


Depth of data has improved

Overall, the improvements in most countries have been small, with gains in large part driven by ‘Market Fundamentals’ as the depth of real estate data has improved. Taiwan features in the global top 10 improvers, while several other key markets – including the top-tier cities in China and India, as well as Japan and South Korea – have seen moderate progress. With the exception of a few countries, ‘Governance of Listed Vehicles’ remains one of the less transparent sub-indices in the region and no notable change is evident since the previous survey.

Australia edges up the global ranking

Australia has edged up in the global ranking for real estate transparency to 2nd, sitting alongside the United Kingdom, United States and Canada as the world’s most transparent countries. ​​

China’s Alpha cities on the cusp of the ‘Transparent’ tier

China’s Tier 1 Alpha cities (i.e. Shanghai and Beijing) have shown the greatest improvements in transparency in the country, led by ‘Market Fundamentals’. Strong occupier and investor interest in Tier 1 markets has underpinned a rise in demand for real estate data in recent years and these markets are on the cusp of the ‘Transparent’ tier.

Singapore and Hong Kong compete for top spot in Asia

Singapore and Hong Kong remain neck and neck for top spot in Asia; however, both markets have seen little change in overall transparency and continue to be on the border of the ‘Highly Transparent’ category. Alignment of shareholders’ interests of listed vehicles in Hong Kong still requires improvement, while the depth of real estate data in disaggregated databases in Singapore trails many major global markets. In addition, reconciliation of service charges for facilities management remains an area that both markets lag relative to their market maturity.

Taiwan is region’s biggest improver

The region’s biggest improver, Taiwan, has seen marked progress on the back of gains in ‘Market Fundamentals’ and ‘Transaction Process’. A more competitive landscape has elevated occupier service offerings, while policy changes, both new and old, are flowing through to gains in information availability and accuracy. In 2016, a consolidated housing and land tax was introduced which brought the country in line with international standards and helped correct a flaw in the taxation system which saw declared land values often undervalued.

Advances in market data in North Asia

In North Asia, advances in market intelligence have contributed to moderate improvements in transparency for Japan and South Korea. Robust investor interest, both domestic and foreign, has led to increased demand for real estate information and encouraged more extensive tracking of property sectors by service providers including JLL.

India’s government seeks to boost transparency

Modest but broad-based gains in India have, in large part, been driven by the Modi government’s aim to stimulate growth and reduce red tape. Land records have begun to be digitised and made available via an online database. Meanwhile, the Land Acquisition, Rehabilitation and Resettlement Act, which was passed in 2014, has simplified procedures for acquiring land and determining fair compensation to sellers. ​​​

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JLL Cities Sunburst Chart