theSun Property January 2017

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AS in the start of getting into
anything new, the new
year included, there are
bound to be uncertainties,
reservations and fears, not knowing
what to expect. In terms of the
propertymarket, it is the same.
With that, theSun compiles
information gleaned fromvarious
sources on real estate landscapes
around the globe, including local
views onwhat can be expected in
Malaysia.
GLOBAL PERSPECTIVE
According to reports,
transformation and change is
expectedwhere global economy is
concerned. And as the economy is
related to and affects the real estate
industry, we can expect to see new
developments, with new “players”
said to be emerging in the global
real estate arena.
Sources say the traditional
favourites who have earned their
place at the top are expected to
continuemaintaining their strong
positions due to high economic
activities and employment
opportunities. However, new
“players” are sprouting up across
the globe, said to be attracting
institutional and individual
investors.
A recent article by JLL’s David
Green-Morgan reported that Q4 of
2016 saw global investment activity
at US$196 billion (RM876 billion),
7% lower thanQ4 in 2015. “While
this alsomirrors the full-year
decline against 2015, much of this
annual underperformance can be
attributed to the first quarter, after
whichmarkets were playing catch-
up for the remainder of the year.
Wemust remember that 2015 was
one of themost active years on
record so, while global transaction
volumes are down year-on-year,
themarket has held upwell,
particularly given the uncertain
political and economic
environment,” saidGreen-Morgan.
His take on 2017: “As President-
elect Trump takes office, the UK
battles on-going Brexit negotiations
and several European nations head
to the polls, 2017 is unlikely to see
an end to political andmarket
uncertainty. However, the amount
of capital targeting real estate
across the world remains a
constant. For 2017, we forecast
volumes slightly exceeding the
US$650 billion of 2016, with the
possibility of amove towards the
US$700 billionmark of 2014 and
2015 on the back of stronger global
growth.”
NEWREALTYMARKETS
With surging new economies and
the compulsion to identify high-
yield investments spawning new
markets, the up and coming new
“players” in the field are said to be
Tanzania, Vietnam andMyanmar.
According to Vietnam’s FDI
report for 2016, total inflow in real
estate industry amounted to US$1.3
trillionwith luxury properties,
townhouses and villas among the
most sought after residential types
and the bulk of investment mostly
institutional. Reasons for
Vietnam’s positive growth was
attributed to the shift in its
governance frommilitary-run
dictatorship
to a democratic
civilian
government.
Insiders
share that
Myanmar is
active and
rising in the
investment
scene. Reports
said that real
estate rocketed
in the first 11
months of 2016,
receiving FDI
of over US$3
billion. Yangon,
the capital, is
expected to
flourish two-
fold and arrive
at a population
of 10million in
the next 15 to 20
years, with
further international investment
expected inMyanmar’s thriving
real estate sector.
According to reports on Kenya,
it has been capitalising on its
tenacious urbanisation rate and
construction boomover the last
decade, andwill likelymaintain its
strong position in the global
marketplace. Tanzania, Nigeria
and Angola are expected to receive
demand from international
investors.
POLITICAL
TRANSFORMATION
On the political front where
property is concerned,
realignments like Brexit, Trump’s
presidency and the Chinese
decision to regulate its capital flow
will, if not already, affect domestic
markets and have repercussions.
Reports state that “the real
estate industry in the US has been
rallying ahead, driven by strong
internal and international demand
catalysed by continuously
dwindling employment and
expanding wage rates”. The scene
is reported to be similar over in
Canada where property prices are
rising.
London has been resilient, as its
real estate market is reported to
have “showcased recovery”. Still, it
is expected that “the industry will
linger in the doldrums”. Below is
the scene in other countries.
Germany: Strong positionwith a
buoyant residential and
commercial real estate sector.
Poland: Outsourcing boom
fuelling the commercial real
estate sector. Cities to look out
for include Krakow, Wroclaw,
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> Brief look at the property
scene across theworld
Email your feedback and
queries to: propertyqs@
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Propertyoutlook2017
–global perspective PART1
PHOTO: WWW.EXPOGR.COM/TANZANIA/BUILDEXPO/COUNTRYINFO
Tanzania
Vietnam
PHOTO:
PHOTO:
Myanmar
Tri-City, Poznan, Katowice,
Lodz and Szczecin.
Russia: Office market moving up,
especially inMoscow, but
shadows are cast over the
residential market due to
economic woes and enlarging
societal inequalities, which will
leave the residential market
subdued.
Dubai: Reported to have slowed
down but with its disposition
over the years to re-invent and
rebuild itself, the Emirates is
looking very positive, set to
pioneer a new kind of real estate
that will attract designers,
creative professionals and
entrepreneurs from around the
world.
China: A formidable force in the
global real estate industry – the
Chinese contributed some US$18
billion in property investments
around the globe. With that the
Chinese government has decided
to regulate capital outflow,
where now state-owned China
enterprises are not allowed to
invest over US$1 billion in
international real estate.
The bottom line – global real
estate investment is expected to
rise. However, one is urged to do
careful research, map all essential
investment drivers and look hard at
long-term capital gains before
making a decision.
Follow our column next week to
learn the regional view andwhat to
expect inMalaysia.
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PHOTO: WWW.ASIAGREENBUILDINGS.COM
Dubai
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theSun ON FRIDAY | JANUARY 13, 2017