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INSTITUTIONAL INVESTMENT, RETAIL INVESTMENT | Staff Reporter, Taiwan
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Four hottest markets for Taiwan investors revealed

London is one pick.

In recent years, domestic enterprises and individuals have been making aggressive plans for investment in overseas real estate in order to optimise asset allocation, improve return on investment (ROI) or satisfy their self-occupation needs, says Colliers International in a release.

In order to provide better understanding and share the experience about cross-border investments in overseas real estate markets, Colliers International Taiwan has invited Tony Horrell (CEO of Colliers International United Kingdom), Brett Jensen (Account Manager of Colliers International Japan), Mike Broomell (Managing Director of Colliers International Indonesia) and Betty Wong (Executive Director of Investment Services, East & Southwest China at Colliers International) to share their insights on the investment environment, status quo of real estate markets and investment advantages in London, Japan, Indonesia and China. 

Tony Horrell says London sees safe-haven appeal among investors because of its advantages such as the long-established transparent tax laws and regulations, popularity of long term lease and largescale development cases. 

Data in the past five years show that at least £2 billion overseas funds have flown into London’s property market every year. In January 2013, Samsung Asset Management from South Korea bought Crown Place in downtown London with £145 million.

The building earns an investment yield of 4.7%, with Pinsent Masons Lawyers and Crown Place Financial as the two anchor tenants having their lease until 2030.

In Japan, Brett Jensen says that the extreme monetary easing policy of the Abe Administration has led to sharp depreciation of the Japanese Yen recently, which helps strengthen Japan’s competitiveness in exports and economic growth. Currently, land prices and office rents in Tokyo, the capital of Japan, have bottomed out and began to pick up.

Moreover, the office vacancy rate will decrease to less than 5% in favour of sellers. On the investment sales front, due to the active participation of JREITs in the market, the buyers and sellers come closer in their price recognition, which drive an increase in the transaction volume.

Due to the traditional advantages of Japan’s property markets - including an intact legal structure, low political risks, a loan ratio up to 70% and borrowing rates between 1% and 2%, as well as the rising expectations of economic recovery and investment confidence resulted from “Abenomics” and the favourable exchange rate, it is now an excellent time to invest in Japan.

Meanwhile, Indonesia, a member of the Association of Southeast Asian Nations (ASEAN) with the highest growth potential, is also a promising destination for investment.

Mike Broomell, Managing Director of Colliers International Indonesia says, with the 4th largest population - 245 million - in the world, Indonesia has recorded an economic growth of 5.2% per year in the past ten years, next only to China and India. Jakarta, Indonesia’s capital, is the second largest city in the world with a population of 28 million.

In a survey conducted by Urban Land Institute and PricewaterhouseCoopers (PwC), Jakarta was ranked as the No. 1 investment destination in Asia, surpassing the other cities like Shanghai, Singapore, Sydney and Beijing. At present, the rental yield of offices in Jakarta ranges from 6% to 8%.

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