Many of the hottest international properties are in cosmopolitan cities such as London, New York, Sydney, Tokyo, Melbourne, Hong Kong, Shanghai. But in cities which are just on the brink of breaking into the ranks of the big guys, the potential for growth could be immense.
Photo: The Bay in Cambodia by architect firm Ong & Ong.
Though some may find investing in these emerging markets riskier, the lower costs now as compared to the potential yield make for an exciting landscape. In countries such as Cambodia and Vietnam, you may now find more developers building private residential condominiums and commercial properties such as shopping malls, shops and office blocks. The level of affluence in the local context is increasing, and foreign investment interest has been on the rise for some time now.
Though the political and economic environment in these emerging markets may not be as stable, investors have been able to get a glimpse of the potential these markets hold over the past 5 years. The rise in property prices and sales volume have been steady and yet prices remain affordable.
Considering Singapore’s relative proximity to Vietnam and Cambodia, and the rising number of Singaporean developers with good track records entering the market, buyer’s may be more willing to take the plunge. In Cambodia, a 5 to 8 per cent net yield could be expected. The construction industry there is benefiting and by 2018, an additional 12.9 million sq ft of properties is expected to enter the market.