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Jones Lang LaSalle ties increased real estate transparency and investment interest to economic growth
Singapore, 4 June 2013 – As political and business leaders from across Asia gather at the 2013 World Economic Forum East Asia in Nay Pyi Taw, Myanmar, leading global real estate advisory firm Jones Lang LaSalle has identified real estate trends and opportunities in emerging markets across Southeast Asia that will support the establishment of an ASEAN Economic Community (AEC) by 2015.
The economies of the ASEAN markets continue to outpace the rest of the world by a significant margin. While Singapore remains the commercial and financial hub, emerging markets are making headway across Southeast Asia. Despite a slight slowdown during the first quarter of 2013 in some Southeast Asia (SEA) markets, such as Indonesia and Thailand, economies across the region anticipate growth for the remainder of the year. As the continued global economic recovery and growth in the region increase liquidity and reduce debt, growth prospects in real estate assets across the region will attract global investors.
Chris Fossick, Managing Director, Singapore and Southeast Asia at Jones Lang LaSalle, who is attending the World Economic Forum on East Asia said, “This growth translates to robust domestic investment into commercial property, driving demand for office and logistics space. Increased consumer spending will boost demand for expanded retail formats, which in turn will support the developments of retail malls and the subsequent accompanying infrastructure in emerging markets. We are now starting to see increased transparency in the real estate markets of these economies which will ultimately spur regional growth encouraging investment.
“As a result, the real estate industry is in a unique position to influence and be involved in many key aspects of development in the Southeast Asia region, both economic and social. There is a role for the industry in areas such as infrastructure, housing, education, healthcare, tourism and industry and trade which are all inextricably linked. This is both an opportunity and a challenge for our industry and we need to work closely with both private and public enterprise to ensure real estate adds full value.”Real Estate Markets
Demonstrating this growth is Jakarta, where office demand has increased by nearly 150 percent in four years, growing 7.4 percent the last quarter alone. The Philippines, often overlooked by investors, witnessed record levels in demand for office space, sparking new developments in previously unexplored submarkets and a 3 percent rise in rents from the same period 2012. Backed by increased domestic demand, office market rents and capital values, Thailand’s real estate market has demonstrated recovery since the end of 2012, rising 15.2 percent year over year in the first quarter of 2013. Meanwhile increases of 1 to 4 percent in office rents were seen in some other emerging SEA markets, such as Kuala Lumpur and Bangkok.
Source: Jones Lang LaSalle 2012 Global Real Estate Transparency Index
Across the SEA emerging markets, increased corporate real estate activity is enhancing the pace of transparency improvements in Indonesia, the Philippines, Vietnam and Thailand. These countries have experienced the most progress in transparency among Asia Pacific countries, and rank among the top 10 improvers globally in overall transparency scores due to greater availability of market data and incremental changes in the regulatory and transaction processes.About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management.Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 25,100 employees operating in 76 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012. www.joneslanglasalle.com/asiapacific
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