Indonesia and Vietnam charm Middle East investors
Middle East investment flows to SE Asia as performance outpaces mature western markets with sustainable growth of up to 8%
Middle East investors tapping into South East Asia's property markets are turning increasing attention to countries such as Indonesia and Vietnam, say the organisers of Cityscape Asia, part of the world’s largest business-to-business real estate event brand.
"With the shifting of capital away from developed markets facing slumps, the unmet property demands in virtually all sectors in countries such as Indonesia and Vietnam offer investors growth opportunities not available in other markets," said Graham Wood, Exhibition Director for Cityscape Asia 2008 which takes place at Suntec, Singapore, 15 – 17 April 2008.
Cityscape Asia is an extension of the successful Cityscape Dubai organised by IIR Middle East. It is a joint venture between IIR Middle East and IIR Singapore, utilising the strengths of the global brand and expert local knowledge. At the latter end of 2007, Cityscape Dubai smashed all previous records with 52,000 participants from more than 120 countries. Cityscape Asia is set to welcome more than 8,000 real estate professionals and host over 100 exhibitors.
Among Middle East investors taking an increasing interest in South East Asia is Limitless, the property arm of Dubai World, an exhibitor at Cityscape Asia, which is buying a $110 million, 30% stake in three units of Indonesia's biggest property developer by value PT Bakrieland Development.
"Limitless is expanding in what is South East Asia’s largest economy," Wood added. "Fundamentally, Indonesia expects to shrug off the effects of a global slowdown with the country's central bank forecasting growth of 6.2% this year after a 6.3% expansion in 2007."
The Dubai developer is to work with Bakrieland on the Indonesian company’s Rasuna Episentrum, a residential and office complex in central Jakarta that Limitless can help market to overseas investors.
Less than an hour away from Singapore is Indonesia’s Bintan Island which welcomed 323,600 visitors last year, with one million visitor arrivals targeted by 2012.
"Here again there is a high level of interest in the island's latest integrated resort development called Lagoi Bay from potential investors from the Middle East and Singapore with almost 25% of saleable land available already reserved," said Wood.
Lagoi Bay is spread over 1,300 hectares allowing for resort, residential and commercial investment. Cityscape Asia exhibitor PT Bintan Resort Cakrawala, a master developer, is offering a variety of sites for development.
In the Indonesian island of Bali, PT Griya Development has become the largest land acquisition company in the area with exclusive developments in Seminyak, Jimbaran, Nusa Dua and Tanjung Benoa on show.
CB Richard Ellis, the world’s largest commercial real estate services firm, recently reported strong demand in all sectors of the Vietnam real estate market in 2007.
Vietnam currently has the fastest growing economy in South East Asia with GDP of over 8% in the last three consecutive years. In 2007, total investment capital into real estate projects was estimated at $5 billion, which was mainly sourced from foreign direct investment.
"In 2008, this will continue but the landscape is changing," the company added. "Important projects are not just taking place in the two main cities of Hanoi and Ho Chi Minh City but they also extend to other growing cities like Hai Phong, Da Nang, Nha Trang, and Can Tho. Demand is great but buyers are becoming more discriminating in what is being offered."
A presentation on succeeding in the Vietnam market and investment opportunities will be part of the Cityscape Asia International Property Investment and Development Conference which runs in parallel with the exhibition. The three day conference will also feature the world’s leading real estate investment experts examining mature and emerging markets in Asia including Asian real estate investment trusts, derivatives and an Asian investment property databank.
For more information about Cityscape Asia 2008 and all related events, please visit: www.cityscapeasia.com or email graham.wood@iirme.com
