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Market experts believe that the creation of the ASEAN Economic Community (AEC) in 2015 is expected to propel the demand for commercial properties, particularly for the office and retail leasing market in the region.
CBRE Research Head Desmond Sim revealed that the AEC is expected to play a significant role in liberalising the investment markets of Southeast Asian countries, allowing the region to attract more capital from foreign investors.
The recent CBRE report entitled ‘AEC – A boost to South East Asia’s Real Estate Market’ also stated that the formation of a unified, intra-regional market would stimulate the appetite for industrial properties.
In turn, this positive effect would spread to the office and retail markets as more companies seek to enter the region while existing ones to expand.
Additionally, the AEC would greatly benefit hospitality properties like hotels and resorts as the paradigm’s blueprint will focus on improving air and land transport infrastructure as well as foster intra-regional cooperation to attract more tourists to the region, noted the report.
In line with this, Dat Lanh Real Estate Company’s Director Nguyen Van Duc believes that the AEC would increase the appetite for office and retail space in Vietnam, as more companies are anticipated to venture into the country after it integrates with its neighbours in 2015.
Meanwhile, a recent study by property consultancy firm Alternaty claims that Vietnam’s real estate market offers the best investment opportunity in Southeast Asia.
The country’s economy has also achieved solid recovery while its legal system governing investments and the property sector has improved.
Furthermore, the latest data from Vietnam’s Foreign Investment Agency revealed that its ASEAN neighbours injected over US$16.9 billion in 97 property developments nationwide as of 20 October.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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