The week in real estate: thousand-dollar skin cream, Bangkok transport and cooling methods…again
The week in real estate: thousand-dollar skin cream, Bangkok transport and cooling methods…again
A round-up of Asia’s biggest property news from the past 7 days
Where is the hottest place to invest in Bangkok property?
What’s the deal with all the illegal real estate businesses in Myanmar?
Which city should you avoid buying moisturizer in?
Read on to find out…
New research
Julius Baer’s wealth report
This year’s Lifestyle Index from Swiss bank Julius Baer saw Shanghai topping other Asian destinations in terms of living costs for upmarket consumers.
The index tracks not only covers real estate but also the general cost of living, including price movements of 21 luxury goods and services, such as jewellery, cars and fashion items. between June 2015 and June 2016.
Julius Baer added skincare cream as a category this year in recognition of the beauty and personal care industry’s remarkable growth. Shanghai is also the most expensive city for buying high-end skincare cream, with one brand even selling at an average price of USD1,537.
Find the report here.
Cushman and Wakefield: Winning in Growth Cities
Winning in Growth Cities is an annual survey of global commercial real estate investment activity which lists the cities most successful at attracting capital.
The report shows that global property investment has risen to USD1.35tn in the past year despite 12 months of uncertainty across the globe. Ten of the top 25 cities by foreign investment were in EMEA, nine in North America and six in Asia-Pacific.
Find it here.
Country news
Thailand
New residential zones are cropping up alongside plans for a new rapid transit line in Bangkok, which will receive bidders next year, connecting the Thailand Cultural Centre and Min Buri.
The Orange Line will stretch for 39 kilometres, 30 stations, and covers much of the busy Rama IX Road. A concomitant blossoming of residential plans along the strip are now expected, with 2,080 units launched in the third quarter of 2016 alone.
“The Orange Line will drive dramatic changes in the area,” Tritecha Tangmatitham, managing director of developer Supalai Plc, told the Bangkok Post. “Rama IX is a thriving location with office spaces, retail areas and residential projects.”
China
Nine cities across China are now subject to property curbs, following an announcement last Friday night in Beijing.
Officials require a 35 percent downpayment of first-time home prospectors, 50 percent for those buying a house for the second time.
These cooling measures were announced in time for Silver October, a peak season for property investment in China.
They also came a few days after several comments on CNN by Dalian Wanda Group chairman Wang Jianlin, warning of the “biggest bubble in history” and problems in the property market that would be “very difficult to resolve” in such boiling markets as Shanghai and Shenzhen.
Introducing these unannounced was perhaps a necessary measure given the recent issues with panic buying in Shanghai.
Myanmar
More than a hundred real estate businesses are operating illegally in Yangon, because they are owned by foreigners, we learned this week.
MP Win Maung of Hlaingthaya Township is calling for a clamping down on such businesses, claiming they “take advantage of the country’s weak rule of law and continue the legacy of corruption and bribery.”
The politician invoked the 1987 Law for Immovable Properties, which forbids the selling, leasing or transferring of property to overseas buyers.
Trends
PropTech (Property Technology) is a booming space, and this week we learned that another London real estate startup has secured an impressive GBP3 million (USD3.8million) in funds to kickstart what hopes to be the “Amazon for home sales.”
‘Nested’ promises to sell your property within just three months – or else it will lend you a lump sum of interest-free cash to put a down payment down on your next home.
The investor profile is perhaps an indication of great things to come for Nested, with backers including:
• London seed fund Passion Capital
• Tim Bunting, a partner at venture capital firm Balderton
• Tom Hulme, a partner at Google Ventures
• Paul Forster, the founder of jobs website Indeed
• Germany’s billionaire Samwer brothers, founders of venture builder Rocket Internet
Impressive!
Source: Property Report