The ASEAN is made up of 10 states including Singapore, Thailand, Indonesia, Malaysia, Myanmar, Laos, Vietnam, Brunei, Cambodia, and the Philippines. These countries have been at the forefront in the property market thanks to improving regulatory policies in place. Which of these countries have the best property markets? Where should you buy property in Asia?
By 2020, Thailand’s policy rates and new land and property taxes will impact the country’s real estate market. Still, CHG believes that the country’s property market is still a worthy investment. Investors keen on getting condos may take advantage of the country’s oversupply of condos. They may also consider investing in single-detached houses with average price increases of 3.1%. Townhomes also posted a rise of 6.5% due to the growing demand. Investing in co-working spaces is also a profitable endeavour. Since the limited supply cannot compensate for the need, rental rates are expected to increase.
When it comes to the rental property market, the best country to buy property in Asia for rental income in Indonesia. The property market has outstanding yields of as much as 7.09%. Investors who have $2,000 to spend per square metre will significantly benefit if they invest in villas located in Bali. Note, however, that Bali has lower rental yields compared with Jakarta, but investors can benefit from the year-round influx of tourists.
In the past years, more and more foreign property buyers head to the Philippines because of the country’s strong economic growth brought about by the real estate market boom. The country has tons of infrastructure projects that increase property values. According to Collier’s report, the country has 5.3% rental yields for luxury condos. By 2020, rental yields will increase by 1-3%.
In 2016, the Myanmar government passed the Condominium Law in hopes of attracting more overseas investors into the country. Under the law, foreigners can own 40% of units in a condo project. However, the country still has a few condos that would make profitable returns to investors.
Investors looking at industrial markets should focus on Laos. The country’s industrial growth is projected to increase by 8.1% thanks to sustained infrastructure projects. Foreigners can build homes or commercial structures on their leased land.
Vietnam is the best country to buy property in Asia as a foreigner since they have the same land rights as any local. However, they cannot own more than 30% of the apartments in a building structure. Still, it is better than having limited rights to ownership.
Malaysia is another country that offers the best opportunities for foreigners. Property ownership in Malaysia is liberal. Foreigners have complete ownership of their property provided they meet the minimum requirements stipulated by law. This foreign openness allowed Malaysia to become an investment hub for property buyers. In terms of yields, investors can benefit from the country’s low tax rates.
Singapore’s main advantage is its strong economic policies. Properties in Singapore have sky-high prices causing them to have lower yields. While the country has high property lease tax, foreign and local investors do not pay capital gains tax.
The best countries to buy property in Asia depends on your needs and goals as an investor. If you want higher rental yields and you are willing to face the hassles of owning a property, invest in Indonesia. However, if you want stability despite low rental yields, invest in Singapore or the Philippines.