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June 2016

As the globe’s largest continent and the home of around 60 percent of the world’s total population, Asia is a vast region comprised of the most diverse markets each of which offers its own unique opportunities and comes with a specific set of challenges.

In terms of real estate, Asia is home to some of the world’s most dynamic and fastest growing markets in the world with several of them being predicted to overtake high-growth markets in other global regions in the very near future.

For the purpose of this edition we have decided to concentrate on East Asia in our real estate market analysis, particularly focusing on Hong Kong, Vietnam, and South Korea.

China’s well publicised GDP depreciation is causing economic concerns globally, and with China being the main driver of the Hong Kong property market, the question rises how this will impact real estate markets in the “Fragrant Harbour.”

Our Hong Kong analysis reviews how the reach of China’s influence has spread across the four core sectors of the Hong Kong property market – office, retail, industrial and residential – and how these are expected to perform and transform as changes in China’s economy take hold.

Quite a different market is South Korea, known for its steady impressive economic performance over a prolonged period of time and a stable investment environment. As the home of Samsung, Koreans are known for their tech-savviness with a lifestyle highly entrenched in technology. E-commerce is a fast growing phenomenon in Korea which has positive implications for the country’s industrial sector for example.

As Cityscape we’re also present in Korea with the second Cityscape Korea taking place from 10 – 12 June at the Korea International Exhibition Centre in Seoul.

Lastly, Vietnam is a country which currently witnesses impressive growth across all of its real estate sectors, but mainly in the residential and tourism oriented segments. As it slowly catches up with its richer Asian neighbours, Vietnam still offers better value for investors who are increasing their capital allocation in the country, especially since the relaxation of foreign property investment laws in July last year.

We also look at capital migration trends from Asia to other markets in the world. In a quest to seek broader diversification and higher profits, Asian real estate investors are changing their strategies and are increasingly pursuing opportunities overseas. 2015 was a record year in terms of Asian outbound real estate investment; a trend which isn’t set to slow.

China and Singapore, along with Hong Kong and South Korea, are the major exporters of Asian capital into global real estate markets, all of which have recorded a remarkable increase over last year. Our in-depth analysis of their target markets and preferred assets can be read on pages 38 – 40.

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