Three Property Business Heavens in ASEAN

TEMPO.CO, Jakarta - Property consultant firm Cushman Wakefield predicted that property business would grow significantly in Vietnam, Indonesia and the Philippines. "This growth is based on economic and demographic prospects of those countries," said Southeast Asia Cushman Wakefield executive managing director Arsh Chaudhry on Tuesday, October 14, 2014.

He said that the economy of the three countries have grown between six and seven percent annually during the 2008-2013 period. If combined, the three countries will become the 12th biggest economy in the world with a total GDP of US$1.8 trillion.

With controlled fiscal policies, the three countries will achieve a cumulative GDP of US$5 trillion in 2015. According to Chaudhry, growth rate of these three countries rival Brazil, Russia, India, China and South Africa (BRICS). The growth rate will also turn Indonesia, Vietnam and the Philippines into magnets for foreign investment. "This will of course support demand for property in all groups," Arsh said.

One of the most prospective sectors is the office space sector. Chaudhry said that Indonesia, Vietnam and the Philippines will offer higher profit although their markets are less stable compared to Europe and the US. Office space sector will hopefully contribute to 12 to 18 percent of returns in the next five years.

Another important things is the rise of office property price up to 50 percent in the last five years. However, average price in the three countries is relatively low compared to other regions in Asia. "This gives space for higher price hike," said Chaudhry.

PINGIT ARIA