Expand investment in real estate overseas, especially in the United States, Europe and Japan, which are attractive because of the anticipated global economic recovery, property experts at Jones Lang LaSalle (JLL) suggests.
According to Supin Meechucheep, managing director of JLL (Thailand), New York, Los Angeles, London, Tokyo, Shanghai and Beijing are all on the list of attractive places for real-estate investment in 2014 as the populations and property values in these big cities will continue to grow because of urbanisation.
In the US, Supin suggested investing in commercial assets such as department stores, offices and hotels because if their constant pay-outs, while in London she favours high-end property because of the chance for a high capital return. She said real-estate prices in east London had increased by 10 per cent year on year and would continue to rise.
In Japan, Supin said the demand for condominiums in Tokyo had been on the rise over the past year because of “Abenomics”, Prime Minister Shinzo Abe’s economic stimulus package. Condo prices in high-end districts such as Minato and Shibuya have gone up by 11 per cent since the start of Abe’s economic policies and will continue to increase this year.
As for China, she said that even though real-estate prices in Shanghai and Beijing had gone down slightly, by 2 per cent, the increasing population of millionaires in that country would continue to drive demand, keeping those two cities attractive for property investment.
A number of Thai property firms have expanded their investment overseas, including the US, Britain, Australia, India and Vietnam. They include Land & Houses, which has invested in apartments in the US, and Sansiri, which has interests in condominiums in Britain. Supalai is expanding investment in Australia, and Pruksa Real Estate has developed residential projects for sale in India, Maldives and Vietnam.