Considering a Property in Southeast Asia? Here’s Where to Look

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Southeast Asia is the emerging hotspot of foreign investment. Foreign investors seeking to do business at cheaper costs for higher returns can evaluate the suitable options for them despite the hindrances such as cultural norms, restrictive property ownership laws, and language barriers. The real estate properties are gaining value in this region, and therefore a consideration of factual information is valuable in deciding where to get the property.

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The prices of real estate properties should not be an incentive per se for one to buy. The costs can be inexpensive because the market does not expect future growth, while high real-estate prices may be bound to grow. Real-estate prices are determined by the local conditions such as the supply of housing facilities and employment rates. The economic growth indicators have nothing to do with the appreciation of the real estate properties for a recession and a booming real estate market segment can exist in an economy experiencing superb economic growth. The decision on buying regardless of price ought to be based on whether:

  • The appreciation potential of the property in that market
  • The property can yield profitable rents to warrant holding it for a longer-term

The following countries offer varied conditions for property acquisition:

1. Cambodia

The real estate market prices have experienced exponential growth in recent years, as instigated by the agricultural and tourism sectors. These sectors have created a multicultural society that has increased the traffic of foreign investment.

Foreign buyers in Cambodia can own properties on a freehold basis, but no land ownership rights exist for foreigners. There is no minimum price regulation in the real estate space, so locals and foreigners can equally buy. Property ownership by foreign nationals is possible through:

  • A foreigner can get Cambodian citizenship after paying $50,000 as a donation from when they can acquire properties
  • Companies recognized by the Cambodia Development Council (CDC) and Cambodia investment Board (CIB) can own land, develop or lease it while foreigners having minority ownership in a Cambodian company can acquire properties
  • Land can also be held in lease terms up to a maximum period of 99 years which is non-renewable

The real estate prices in Cambodia are highly accelerating, despite the lowest taxation rates on real estate giving buyers the incentive to buy. The low prices are attributed to the Cambodian least development in real estate in Asia, but this will not continue for long due to the 7% economic growth, which presents an incentive to invest.

Some of the major places for obtaining real estate properties are:

  • Phnom Penh
  • Sihanoukville
  • Kampong Cham
  • Chroy Changvar

2. Malaysia

It is the hub of foreign investment due to its attractive tropical climates, beautiful sceneries, and beaches. It is, therefore, an option when considering acquiring a second home for retiring and renting out during certain seasons of the year. The cost of living and a less stringent property market. The following are the incentives for property acquisition:

  • Foreign investors can own land, condominiums, and homes
  • The luxury property is separate from the other property market through a minimum price regulation for the foreign investor so that the locals also afford properties in the cheaper brackets
  • The prices are the most affordable in the whole of Southeast Asia

Some of the most notable areas where you can buy properties in Malaysia are:

  • Mont Klara
  • Port Dickson
  • Penang
  • Klang Valley

3.Singapore 

The entry into the Singaporean real-estate market as a foreign is easy as you can acquire properties in condominium development and invest in them. One requires government approval to purchase the following:

  • Undeveloped land
  • Landed residential property such as bungalows
  • Residential properties in a building of not more than six levels 

 

The real estate portfolios are expensive in the global market standards, while a 15% tax is imposed on foreign real estate investors in Singapore.

4. Thailand

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The annual tropical climate and affordable lifestyle are the incentives for foreign investment in Thailand. An investor can own condominiums and homes on a freehold basis to eternity such that:

  • The investor does not need to pay landlord charges such as rent or service fees
  • The investor has no dealings with the landlords since they own the property rights

However, no foreign buyer is allowed to own the land on which those properties are built. The following are the foreigner’s regulations for controlling properties in Thailand:

  • The foreigners can hold land on leasehold terms up to a maximum period of 30years which are renewable for another 30 year period
  • Through Thai registered company where the foreigners are the minority shareholders, the foreigners can own land in Thailand 
  • A foreigner with a Thai spouse may own land by signing a declaration that the funds used belong to the Thai spouse
  • Foreigners can own condominiums up to 49% of the total cost of development

There is a rising trend of the real estate properties with the most suitable prices for buying properties being:

  • Bangkok
  • Phuket
  • Koh Samui
  • Hua Hin
  • Pattaya

As highlighted on the website of Cornerstone.co.th, it provides the price-tagged residential, industrial, commercial real estate or land in Pattaya. The properties are found in various parts of Pattaya, such as Wong Amat, Naklua, Pattaya city, and Huay Yai, where investors can check them out when they consider Thailand.

5. Philippines

A vacation home along the pristine beaches is the dream of foreign investors. Investors can own properties such as houses, condominium units and apartments but not land. However, they can circumvent the restriction of land ownership through obtaining long-term land leases to tap the economic viability of the spurring real-estate market in the Philippines.

Investors considering to buy properties in the Philippines can do so in:

  • Davao city
  • Samal Island
  • Negros 
  • Batanes
  • Boracay

Conclusion

The choice of property to buy depends on your needs, but where to acquire it may be influenced by its prospect of appreciating its ability to generate the desired rent and the law of real-estate in the region. Evaluating the suitable region to acquire the property will be essential to reap benefits when the real estate market grows.

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Summary
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Considering a Property in Southeast Asia? Here’s Where to Look
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The real estate properties are gaining value in this region, and therefore a consideration of factual information is valuable in deciding where to get the property.
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