Malaysia PM Najib Razak has a vision of capital city Kuala Lumpur as "one of the leading capitals of the world, driving forward Malaysia’s national transformation" with the Bandar Malaysia project.
The biggest development site in Malaysia is envisioned to be a new city centre for Kuala Lumpur, hosting residences as well as businesses. "Rather than just office and residential towers, we want Bandar Malaysia to be a catalyst for fast-track economic development and employment, including the new KL Internet City – the key hub of the world’s first Digital Free Trade Zone. We want to create an iconic development to drive tourism. And we want to create a transport nucleus for Malaysia, with Bandar Malaysia set to host the Kuala Lumpur to Singapore high speed rail, MRT lines, KTM Komuter, Airport Express Rail Link and 12 highways," he said in a statement.
PM Najib announced the appointment of Tan Sri Dr Mohd Irwan Serigar Abdullah, Secretary General of Treasury, as the Chairman of both TRX City and Bandar Malaysia, and added that the Ministry of Finance will retain 100% ownership of Bandar Malaysia.
TRX City and Bandar Malaysia will begin a request for proposal (RFP) process, inviting expressions of interest for the role of master developer of Bandar Malaysia, PM Najib added. "The selection process for the master developer will involve very strict criteria, including a proven track record, speed of delivery, content creation, and the financial capability to deliver a project of this scale. The highest possible value will be sought to ensure that the best deal for the taxpayer is obtained," he said.
Showing posts with label urban. Show all posts
Showing posts with label urban. Show all posts
2 December 2015
Japan and Australia to be real estate investment magnets in 2016
Real estate activity in Asia next year will continue trends seen in 2015 - an abundance of capital flowing to core spaces, as well as a flight to safe havens in the region's most developed and liquid markets, according to Emerging Trends in Real Estate Asia Pacific 2016, a real estate forecast jointly published by the Urban Land Institute (ULI) and PwC.
Tokyo, ranked first for investment and development, ticks all the boxes for investors given its status as Asia's top gateway city, and the market with the greatest depth and liquidity. Despite the continuous heavy activity fuelled by easy credit and low interest rates, some are wary that the market is slowing. While the short-term outlook is favourable, a slowdown, accompanied by price stagnation or declines, could prove problematic for those needing to refinance high loan-to-value loans in the future, the report cautions.
Melbourne, third for investment and development, is perceived as offering a similar environment to Sydney. However, even with double-digit price increases in 2015, properties in the city remain more affordable than those in Sydney, mainly because more land is available for an expansion of the central business district (CBD).
Japan and Australia remain the favourite countries for investment and development, with Tokyo, Sydney, Melbourne and Osaka taking four of the top five spots for promising markets in the Asia Pacific region. Ho Chi Minh City, rated fifth, rounds out the list of most favoured markets.
"Asia's real estate markets are the product of almost eight years of easy money from the world's central banks. Although easing in the US may be ending, both Japan and the European Union continue to provide liquidity, while interest rates in many Asian countries are lower than one year ago," said ULI North Asia Chairman Raymond Chow, Executive Director, Hongkong Land in Hong Kong. "This, combined with an allocation of capital from both local and global institutional investors, is resulting in more and more money chasing fewer and fewer real estate assets. This is pushing up prices across most markets and sectors, even as the current industry cycle appears to be winding down. We can expect this to continue throughout 2016, with the most attention being paid to markets perceived as offering certainty in terms of low risk and satisfactory returns."
"As the bull market in Asian real estate enters its seventh year, the positive atmosphere is encouraging investors to sell assets purchased years ago in the wake of the global financial crisis. Our report finds that investors are increasingly opting to take profits and exit from deals made in recent years. Opportunistic returns lie in Japan, where cheap debt and high leverage provide outsized profits, and in China, where developers are in need of capital and liquidity is in short supply. Meanwhile, investors with an eye on a possible peak in the cycle are attracted to the safety of core assets in gateway cities," said KK So, Asia Pacific Real Estate Tax Leader, PwC.
"Asia's real estate markets are the product of almost eight years of easy money from the world's central banks. Although easing in the US may be ending, both Japan and the European Union continue to provide liquidity, while interest rates in many Asian countries are lower than one year ago," said ULI North Asia Chairman Raymond Chow, Executive Director, Hongkong Land in Hong Kong. "This, combined with an allocation of capital from both local and global institutional investors, is resulting in more and more money chasing fewer and fewer real estate assets. This is pushing up prices across most markets and sectors, even as the current industry cycle appears to be winding down. We can expect this to continue throughout 2016, with the most attention being paid to markets perceived as offering certainty in terms of low risk and satisfactory returns."
"As the bull market in Asian real estate enters its seventh year, the positive atmosphere is encouraging investors to sell assets purchased years ago in the wake of the global financial crisis. Our report finds that investors are increasingly opting to take profits and exit from deals made in recent years. Opportunistic returns lie in Japan, where cheap debt and high leverage provide outsized profits, and in China, where developers are in need of capital and liquidity is in short supply. Meanwhile, investors with an eye on a possible peak in the cycle are attracted to the safety of core assets in gateway cities," said KK So, Asia Pacific Real Estate Tax Leader, PwC.
"In terms of capital flows, investors continue to see increases in capital movements from Asia to real estate markets elsewhere in the world. The main contributor to this trend is China, where institutional, corporate, and private capital is buying mainly in Australia, Japan and the US."
Emerging Trends provides an outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. It is based on the opinions of 343 real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.
The top five investment markets for 2016 are:
Emerging Trends provides an outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. It is based on the opinions of 343 real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.
The top five investment markets for 2016 are:
Tokyo, ranked first for investment and development, ticks all the boxes for investors given its status as Asia's top gateway city, and the market with the greatest depth and liquidity. Despite the continuous heavy activity fuelled by easy credit and low interest rates, some are wary that the market is slowing. While the short-term outlook is favourable, a slowdown, accompanied by price stagnation or declines, could prove problematic for those needing to refinance high loan-to-value loans in the future, the report cautions.
Sydney, ranked second for both investment and development, is a draw for institutional investors seeking core office properties. The shortage of those assets and an influx of new investors competing for the properties, coupled with a depreciated local currency, is resulting in strong property yields. Real estate in Sydney is also benefiting from the transformation of Australia's economy from a commodities-driven to a service sector-driven model. A significant number of office-to-residential conversions and redevelopment projects have drawn investor interest.
Melbourne, third for investment and development, is perceived as offering a similar environment to Sydney. However, even with double-digit price increases in 2015, properties in the city remain more affordable than those in Sydney, mainly because more land is available for an expansion of the central business district (CBD).
Osaka, fourth for investment but fifth for development continues to benefit Tokyo's spillover demand. The market's growth "marks the end of a long period of oversupply that plagued the city for years," notes the report.
Ho Chi Minh City - fifth for investment and fourth for development - was in 19th place in 2014. The report attributes its surge in popularity to successful efforts by the government to stabilise the local currency and keep inflation in check, coupled with a revival of real estate lending by banks. In addition, improved market access for foreigners is drawing outside investors, who could significantly boost purchases of both residential and commercial properties.
Across the Asia-Pacific region, the industrial/logistics sector continues to be the most popular property type for investment prospects. "Shortages of modern distribution facilities across almost all markets ensures that demand will continue to grow, especially in China," says the report. It notes that demand is being driven by the need for rapid delivery resulting from the e-commerce boom, buildout in the cold-food chain, and structural changes in regional manufacturing as operations move to emerging markets such as Vietnam.
Across the Asia-Pacific region, the industrial/logistics sector continues to be the most popular property type for investment prospects. "Shortages of modern distribution facilities across almost all markets ensures that demand will continue to grow, especially in China," says the report. It notes that demand is being driven by the need for rapid delivery resulting from the e-commerce boom, buildout in the cold-food chain, and structural changes in regional manufacturing as operations move to emerging markets such as Vietnam.
27 January 2014
China heavily represented in Jones Lang LaSalle's new City Momentum Index
Dubai, Wuhan, Shanghai, Hong Kong and Singapore are in the top 10 for Jones Lang LaSalle's new and proprietary City Momentum Index (CMI). According to the company, highly dynamic cities demonstrate strong short term socio-economic and commercial real estate momentum and longer term foundations for success.
According to Jeremy Kelly, Director, Global Research for Jones Lang LaSalle: "City momentum is about far more than just raw GDP growth. The true foundation of highly dynamic cities emerges from such factors as speed of innovation and creation of cutting-edge businesses along with new building construction, property price movement and investment in real estate from cross-border investors and corporations.
"By focusing on the features of a city that are likely to underpin future performance, the CMI stands apart from the standard historic performance upon which most indices are based. It is such measures of dynamism in infrastructure, connectivity and innovation that we believe will be steering many investment and location decisions in the future, though investors and corporates should note that high momentum can pose both risk and opportunity."
The top cities in Asia Pacific and the Middle East have these characteristics:
Elite cities that wield clear economic might on the global stage, accounting for one-quarter of the world's direct commercial real estate investment activity from 2012-2013:
Dubai (3), Hong Kong (8), Singapore (10) and Tokyo (19)
Rapidly urbanising cities in China that continue to grow with massive city-building programmes despite a slowing economy:
Shanghai (4), Wuhan (5), Shenzhen (11), Beijing (13), Chengdu (14) and Tianjin (16)
Growth hotspots beyond the BRICs driven by urban consumerism:
Jakarta (12)
Resurgent cities gearing up for events in 2020 with renewed vigour:
Tokyo (19) – 2020 Summer Olympics and Dubai (3) – Expo 2020
*The City Momentum Index assesses 111 cities world-wide with a weighted overall score based on 34 short-term and longer term variables.
Short-term socio-economic momentum variables (40% of the model) include recent and projected changes in GDP and population, air passenger traffic, corporate headquarter presence and recent levels of foreign direct investment as a proportion of a city's economy.
Short-term commercial real estate momentum variables (30% of the model) include recent and projected percentage changes in office net absorption, office construction, office rents, shopping mall construction and retail rents, direct commercial real estate investment volumes and real estate transparency.
Longer term variables (30% of the model) that are likely to determine future economic strength and real estate momentum include high-value incubator indicators such as university presence and educational infrastructure, innovation capability and presence of technology and venture capital firms.
According to Jeremy Kelly, Director, Global Research for Jones Lang LaSalle: "City momentum is about far more than just raw GDP growth. The true foundation of highly dynamic cities emerges from such factors as speed of innovation and creation of cutting-edge businesses along with new building construction, property price movement and investment in real estate from cross-border investors and corporations.
"By focusing on the features of a city that are likely to underpin future performance, the CMI stands apart from the standard historic performance upon which most indices are based. It is such measures of dynamism in infrastructure, connectivity and innovation that we believe will be steering many investment and location decisions in the future, though investors and corporates should note that high momentum can pose both risk and opportunity."
GLOBAL TOP 20
| |
1
|
San Francisco
|
2
|
London
|
3
|
Dubai
|
4
|
Shanghai
|
5
|
Wuhan
|
6
|
New York
|
7
|
Austin
|
8
|
Hong Kong
|
9
|
San Jose
|
10
|
Singapore
|
11
|
Shenzhen
|
12
|
Jakarta
|
13
|
Beijing
|
14
|
Chengdu
|
15
|
Los Angeles
|
16
|
Tianjin
|
17
|
Boston
|
18
|
Seattle
|
19
|
Tokyo
|
20
|
Lima
|
Elite cities that wield clear economic might on the global stage, accounting for one-quarter of the world's direct commercial real estate investment activity from 2012-2013:
Dubai (3), Hong Kong (8), Singapore (10) and Tokyo (19)
Rapidly urbanising cities in China that continue to grow with massive city-building programmes despite a slowing economy:
Shanghai (4), Wuhan (5), Shenzhen (11), Beijing (13), Chengdu (14) and Tianjin (16)
Growth hotspots beyond the BRICs driven by urban consumerism:
Jakarta (12)
Resurgent cities gearing up for events in 2020 with renewed vigour:
Tokyo (19) – 2020 Summer Olympics and Dubai (3) – Expo 2020
*The City Momentum Index assesses 111 cities world-wide with a weighted overall score based on 34 short-term and longer term variables.
Short-term socio-economic momentum variables (40% of the model) include recent and projected changes in GDP and population, air passenger traffic, corporate headquarter presence and recent levels of foreign direct investment as a proportion of a city's economy.
Short-term commercial real estate momentum variables (30% of the model) include recent and projected percentage changes in office net absorption, office construction, office rents, shopping mall construction and retail rents, direct commercial real estate investment volumes and real estate transparency.
Longer term variables (30% of the model) that are likely to determine future economic strength and real estate momentum include high-value incubator indicators such as university presence and educational infrastructure, innovation capability and presence of technology and venture capital firms.
Subscribe to:
Posts (Atom)