Exploding Tourism In Southeast Asia Seen To Rev Up Region’s Property Market
Economies in the Southeast Asian region are expanding due to a number of key factors, among them the emergence of increasingly robust tourism industries. As a direct result, the property market is well-positioned for growth that economists said can be credited to the steady influx of foreign investments.
The region’s infrastructure has been improving and quality of life is on the rise, which are solid indicators that most economies in the region are on accelerated growth paths. Unsurprisingly, investors are making their entry in droves and are optimistic of taking part on the ongoing boom.
“Property industries are thriving,” according to Property Report, adding there is a rush of buyers flocking to Southeast Asia looking to score assets deemed as “relative bargains.”
In the same report, it was indicated that investors are training their sights on Vietnam, Cambodia and Myanmar. The three economies have been labelled as the emerging markets that promise of smooth investment and rock-solid return.
Beach Cities On Spotlight
The focus, at the moment, is on shoreline properties as they offer better flexibility in terms of realising investment yields. Foremost of the reasons foreign buyers are drawn to the coastline is relative affordability, which likewise applies to property developments already underway in other Asian markets such as Thailand and Sri Lanka.
It is noteworthy that the latter two enjoy notable advantages over Vietnam, Cambodia and Myanmar when it comes to the issue of property ownership for foreigners, this according to Jo Lodder, marketing director for ALFA Investors.
“Thailand and Sri Lanka have comprehensive ownership structures that allow foreigners to buy and own properties,” Lodder explained.
Of note too is that investors’ confidence has been buoyed in the past few years by the active support extended by the government. Vietnam, for instance, displayed its intention to woo investments by opening up its property market and drumming up interest on the tourism sector.
The same determined efforts were evident in Cambodia, which in recent years has been embracing the heavy inflow of tourists flying in from China. In enforcing such a policy, the country is making clear that Chinese and other foreign visitors are welcome to purchase properties, underscoring at the same time that beach assets are up for grabs.
Investment Risks Remain
Despite the boom both in the property and tourism sectors, it is still apparent that investing in Southeast Asia is not without risks, the Property Report said.
“Red tape, corruption and onerous regulations continue to represent significant hurdles to smooth investment,” the report stated.
Lodder agreed with the assessment, saying there needs to be ready safeguards prior to deciding on a planned property investment. On this aspect, his company will prove useful.
“ALFA’s role is to try mitigating ownership problems and other issues with the use of extensive research and deep knowledge of identified markets in Southeast Asia so as to set up the best process and structures for an investor to learn property,” Lodder said.
“We take every possible precaution to investigate the buying process in a specific country and base on our findings, only then we decide to market the product,” said Lodder.