Transcript Asian Perspectives – South Asia - Professional Property Services

SE Asia: Brooke Perspectives
Key Demographics
Asia
Europe
USA
(25 countries)
Labour force
3.8 billion
455 million
290.5 million
42.35m s.km
3.89m sk.m
9.16m s.km
US$4,969
(per capita)
US$23,600
US$36,300
1.72 billion
220 million
142 million
GDP Growth
9.5
8
6.5
5
3.5
2
0.5
1999a
-1
-2.5
2000a
2001a
2002a
2003b
2004c
2005c
Summary of Labour Cost per Hour (US$)
Indonesia
0.5
Philippines
0.7
China
0.92
Thailand
1.2
Malaysia
2.2
Hong Kong
5.4
Taiwan
5.7
Singapore
8
Japan
20.4
0
5
10
15
20
* For production workers. Includes pay for time worked, other direct pay (eg. holiday pay),
employer expenditures on legally required insurance programmes and other labour taxes.
25
Asian
Average
China
Malaysia
Singapore
Thailand
Australia
Philippines
Indonesia
2003
India
Hong Kong
Japan
Taiwan
Korea
Consumption Trends in Asia
2003/2004
%YoY
10
8
1Q04
6
4
2
0
-2
India: the next China ?
Improving economy
but FDI only US$3.4
billion in 2003/4
Increased spending
on infrastructure
planned
Opening up of the
telecom and real
estate markets to
foreign investors
Outsourcing from US
and Europe continues
47 million new homes
required
Singapore
Over 8% GDP
growth in 2004 but
expected to slow
Retail sales slowing
Recovery in property
markets mixed but
activity increasing and
4 REITS planned
Recent sale and
leaseback of HSBC
Building
Indonesia
Recovery at last
2004 GDP growth was
5.1% and set to increase
in 2005
Consumer spending up –
50% increase in vehicle
sales
FDI tripled in 2004 y/y
Stock exchange at record
high
Stability improving
Malaysia
Strong trading growth
and pressure to
revalue currency
Vacancies in overinvested property
markets declining
Strong retail growth
with consumer
spending up
Increased inward
investment in the
manufacturing sector
Thailand
Improving economy and
lower unemployment
Increased consumer
spending and auto industry
growing
Foreign funds returned to
the stock market
Jump in foreign invested
projects since election
Risk of instability in
southern provinces
Philippines
6.4% GDP growth in
2004 highest since
1996
Domestic demand up
by 6.7%
Increased foreign
investment in call
centres and business
services outsourcing
Industrial sector
strengthening
Regional Trends
Growth in
consumerism
Influx of overseas
funds
Higher community
aspirations
Interest in REITS
Integration of
transportation/real
estate development
Tourism as an
investment driver
Sustainability
Regional Challenges
Mega cities and urban
planning
Urban densities and
housing provision
Integration of
city/regional planning
Regeneration v new
towns
Conservation of
heritage assets
Investment Difficulties – Regulatory Barriers
Indonesia
Local partner needed
All foreign remittance transactions over US$10,000 or its equivalent must be
reported to Central Bank of Indonesia
Malaysia
Local partner needed
The National Land Code restricts the acquisition of land by non-citizens and
foreign companies
Philippines
Local partner needed
Foreigners cannot own land in the Philippines except in cases of hereditary
succession
Foreign interest in a residential project cannot exceed 40%
India
Repatriation of foreign capital invested in real estate is not allowed for foreign
citizens & foreign companies
Funds for acquire or hold property in India must be provided by way of inward
remittance of foreign currency
Thailand
Local partner needed
Foreigners cannot hold title to land but are allowed to purchase leasehold
interests
Regional Office Total Returns
Cities
Average 5 Year
Total Return (%)
Seoul (CBD)
23.4
Bangkok
14.5
Jakarta
12.2
Beijing
11.2
KL (City Centre)
7.4
Shanghai (Pudong)
6.6
Shanghai (Puxi)
3.9
Hong Kong (Central)
1.9
Manila (Makati)
0.6
Singapore (Raffles Place)
-2.1
Tokyo
-5.4
Chasing the Tourism Dollar
National/City approach to creating world class
tourist destinations - very strong competition
Development of family tourism – Disney and
Ocean Park, Universal Studios and Sentosa
Emergence of Macau as the Las Vegas of Asia
and integration of gambling/entertainment
Thailand, Japan and Taipei legalising casinos –
Hong Kong and Singapore considering
Vietnam, South Korea and the Philippines
expanding existing casino operations
Office Market Trends
Hong Kong
Tokyo
Hotter
Still
Sunny
Warming
Up
Singapore
Bangkok
Kuala Lumpur
Beijing
Seoul
Shanghai
Manila
Steady/
Cooling
Down
Cooling
Further
Chilly
Taipei
Jakarta
Ho Chi Minh
PPS
Professional Property Services
Limited