Asia’s property market is absolutely booming. A big reason behind this is the low interest rates and high economic growth rate throughout the region, as reported by Colliers International. With China’s massive industrial sector producing everything from smartphones to stuffed toys, India’s prosperous IT sector and Singapore being a global financial center, the Asian economies have been growing at a faster rate than any other part of the world and not only that; in recent years, the amount of online selling has really caused an injection to the retail market with the emergence of internet giants like Alibaba. This has all led to a real confidence in the sustainability of this growth and mass investment in property.
Urbanization has been occurring at an unprecedented rate in Asia, with all these new jobs being created mostly in the cities, people have been flocking from the poorer provinces more traditionally associated with agriculture. These huge migrations have created a massive demand for new houses and apartment blocks, and the large influx of cash has brought vast improvement in architectural design and quality of construction; with economic development comes housing development in equal measures. Although property prices have been rising in accordance with the increased demand, the relatively low living costs, low interest rates and low tax rates have made Asia an attractive place to buy or even rent a property.
Another factor to consider is the rise in tourism throughout this area of the world. The low cost of flights and travelers becoming more used to traveling to far-away places to experience new cultures, coupled with the excellent exchange rates to the Euro and the Dollar, have given rise to more and more Westerners buying and renting out holiday villas. The tropical climates of countries like Thailand, Indonesia and the Philippines with their stunning beaches and friendly welcoming locals are now a magnet to the more discerning traveler who wants to get more bang for their buck.