Posts Tagged ‘investment’

Jones Lang LaSalle’s Hotels & Hospitality Group (JLL) has revealed that the total value of hotel transactions in Asia has increased 145% in 2013. In fact, JLL claims the industry is having “its strongest year since the global financial crisis.”

Key markets such as Singapore and Japan are responsible for the growth, according to JLL Hotels & Hospitality’s Mike Batchelor.

“Hotel trading performance in Asia has experienced significant turnaround over the past two years and nowhere more so than in Singapore,” he explained. “This quarter’s landmark transaction of the Grand Park Orchard Hotel and adjoining Knightsbridge retail podium heralded the single largest asset deal in the city’s history. Going forward, we are aware of approximately $1.3 billion in exchanged contracts that will contribute to a very strong pipeline over the remainder of the year.”

Batchelor added, “As investor confidence in the region continues to rally, the availability of investment grade hotels is becoming increasingly scarce and, as a result, we are seeing buyers turn their attention towards markets such as Thailand, Seychelles and the Maldives. The Maldives is proving a particular hot spot where contracts have just been exchanged on what will be our fourth transaction in the country in as little as two years.”

 

According to Jones Lang LaSalle’s most recent report, Asia’s hotel transaction volumes have doubled since last year.

Investments in the tourism markets in Singapore, Hong Kong and Tokyo resulted in a 85% increase from last year, with transaction volumes reaching $1.3 billion during the first half of 2013. Tourism in Thailand and the Maldives also contributed to the surge.

Mike Batchelor of JLL said: “During the first half of 2013, we have seen a growing number of transactions, including those at the portfolio level, and improved investor sentiment translate to increased sales. The divergence between vendor and purchaser expectations that served to restrict investment activity in 2012, has improved this year leading to a number of landmark transactions in the first half.”

“Throughout Asia, we are also aware of circa $400 million in hotel transaction volumes to be confirmed soon and a further $1 billion in due diligence.”

China’s real estate market has been booming for quite some time, but new speculations are now pointing investors towards more southern regions.

A real estate forecast by PriceWaterhouseCooper and Urban Land Institute has revealed that Indonesia’s capital, Jakarta, will be the top place to purchase property in 2013, with the market surpassing even Hong Kong, Singapore and Sydney.

International investors have taken an interest in the region thanks to Indonesia’s remarkable economic turnaround over the past several years.

The survey says:

“Interest rates and inflation are under control, and while GDP is growing at around 6.5% annually, foreign direct investment is increasing at a much higher rate- 39% in the first half of this year. Driven by increased demand from foreigners and locals alike, office rents shot up 29% year-on-year in the third quarter, according to DTZ.”

The city’s growth and rising demand have bumped Jakarta up ten spots since its 2011 ranking. However, PwC warns that the market still has its risks. Inexpensive bank loans are a rarity, and it can be difficult to find a trustworthy partner. Disputed land may also pose a challenge.

 

Turkey and Vietnam Need to Join Forces

It seems that if there was greater cooperation between Vietnam and Turkey, the economy climates of both countries would greatly benefit. According to an article in the Vietnam News, they need to get on to this though and start making real efforts so that they will thrive. This is the case for many areas such as: “economics, education and training, [and] science and technology.” It was just two days ago that Nguyen Tan Dung, the Prime Minister of Vietnam, spoke about this in a statement in which he “received outgoing Turkish Ambassador Ates Oktem in Ha Noi.” He had been impressed with the Ambassador’s efforts in his time in office which helped “develop the Vietnam-Turkish friendship and co-operation.”

Better Buddies

Although there is still a way to go, things have for sure improved between Turkey and Vietnam in the last few years. For example, just last year, trading between the two countries reached US$850m. At the moment, Turkey and Vietnam are in the process of signing an “investment encouragement and double taxation avoidance agreements.” It is anticipated that these will really give a jumpstart to economic cooperation and partnerships between the two countries.

Put Differences Aside

It is true that there has been tension between the two countries over the years. But imagine what would happen if these were totally put to one side? As it is business between Turkey and Vietnam is booming and got to almost $1bn last year, even with the current political instability. There has been a steady increase of trade between the two countries over the last few years “from almost nothing to $857m in 2010.” In 2002, this figure was just a little more than $100m.

It is Turkey that is vehement in trying to improve relations with Vietnam and working hard towards this goal. It intends to “appoint a trade counselor” to its Hanoi embassy. Vietnam is home to around 86 million people and is the world’s 13th biggest population. So it’s worth everyone working closely with Vietnam, but especially Turkey.