Asking for the right time to start investing in Asia real estate market is a bit like asking when should you start doing business in Europe. There are simply so many factors to consider that giving an answer like “This year!” is redundant. After all, real estate is connected to business trends, politics, demographics, social situations, climate conditions… So, to at least get an idea of when to invest in Asian real estate market, let’s take a closer look at it.
Is investing in Asian real estate market for you?
Before even considering investing in Asia real estate market, we suggest that you do ample research. Investing in real estate is a large project and usually presents a substantial financial risk. Not to mention all the cultural and historical differences that you need to be aware of. So, do yourself a favor and try to first introduce yourself to Asian real estate. And then proceed to follow market trends in the area that piques your interest. Only with time and understanding will you be able to make a wise investment.
Current real estate trends in Asia
The overall trend in Asia is that it’s becoming less and less centralized. Up until a couple of years ago, you only had large cities like Tokyo, Hong Kong and Dubai that were interesting to Western Investors. But, now, more and more people are moving into other large cities. Some of them are even leaving Japan and moving to America. This is due to the increase in living standards and job opportunities in countries like Malaysia and Vietnam. While these countries are not yet no same level as China or Japan, they are developing at an increasing rate. Which is why real estate in those countries is a much better investment.
You’d be surprised at how much Malaysia has developed over the years.
Alt: Kuala Lumpur at night, showing why investing in Asian real estate market is a good idea.
Now, picking the right time to invest in those countries can be a bit tricky. If you plan on living there, the best time to invest is now. The value of the real estate is developing Asian cities is bound to rise. Which is why the sooner you invest, the less money you’ll spend. If on the other hand, you plan on investing in commercial real estate, you might want to wait a bit. While the business sector, especially IT, is getting stronger in these countries, it still needs a year or two to come into its full swing. So, the best thing to do, for now, is to keep a close eye on a business trend you are familiar with.
Why are you investing in Asian real estate market?
One of the more important questions to consider is why precisely are you investing in Asian real estate market. There are certain real estate trends that you have to follow if you plan on living here. And others if you simply want to buy real estate and then flip it for a profit. So, first, carefully consider why precisely you wish to invest in Asian real estate. Furthermore, you need to consider which country or city you are going to limit yourself to.
You’d be smart to explore Asia a bit before you start investing in Asian real estate market.
Alt: A map of Asia.
Trying to keep track of the entire Asian real estate market is impossible. And while starting over in China after living in Japan is possible, it is much better that you pick the right country right off the bat. So, the sooner you orient yourself properly and find proper new channels to keep track of the desired real estate market, the easier it will be to find suitable real estate.
Where to invest in Asia
To help you narrow down your area interest we are going to point out some of the best places for investing in Asian real estate market. All of them have their pros and cons, of course. But, it is expected that the value of the real estate in those areas will continue to rise, which makes them ideal for investment. With any luck, you should find the type of real estate and the desired neighborhood and then continue your research in order to pick the right time.
Although the Malaysian market has been unstable for quite a while, it shows signs of increased stability. The better political climate, economic growth, better job opportunities… All of them serve to strengthen the Malaysian real estate market and make it that much safer for investment. Add to that the fact that foreign homeowners can get a long-term visa via MM2H (Malaysia is my second home) program. Now it becomes perfectly clear that getting a home in Kuala Lumpur can be a great investment.
Bangkok is one of the most popular cities for investing in Asian real estate market. Over 30 million tourists visit it every year. This means that a lot of those tourists opt for holiday homes in order to enjoy their vacations in peace. Therefore, if you plan on investing in a home in order to flip it, Bangkok can be a great area. But, you should expect to keep track of its local real estate for quite a while in order to find a decent investment. Bangkok’s real estate market is booming which means that there will a lot of competition. But, by getting a decent local realtor to help you out, you should find a noteworthy piece of real estate.
Bangkok is one of the most visited cities in the world.
Alt: A street in Bangkok.
Ho Chi Minh City
When it comes to commercial real estate investment, Vietnam is the place to look out for. Since the labor costs have risen up in China, and the recent riots don’t promise stability, Vietnam has become the sought after place amount Wester Investors. So, if you wish to delve into Asian commercial real estate, we suggest that you start with Vietnam. There are numerous companies that outsource their production to Vietnam. This makes investing in Vietnams commercial real estate quite profitable, especially in the long run. Just make sure to find a dependant property supervisor to help you out.