<p><img alt="A co-working space. Phichat Phruksarojanakun/Shutterstock" src="/documents/10204/0/shutterstock_1051332527-%281%29-compressor.jpg/a1f82c72-e90b-46b3-9c34-f11b7acb9aaf?t=1546499130165" style="width: 1400px; height: 640px;" />Sand in your toes, a light sea breeze ... It wasn’t too long ago that the cliché of a coworking space in Asia centred on dreadlocked digital nomads island-hopping through a professional gap year.</p> <p>And while small business owner-operators can still plug in from a beach shack in Canggu to confer with their factory in Guangdong whilst managing sales in Atlanta, research by Colliers reveals the share of freelancers and independent workers using flexible workspaces dropped by 15 percent over the three years ending in 2017.</p> <p>It’s not that fewer are living the laptop life; no, the flexible workspace market has exploded in Asia-Pacific over the past five years thanks to the enthusiasm of far bigger players on both the supply and demand sides.</p> <p>Big international operators are moving aggressively into the region, including WeWork, which opened its 200th location globally in Singapore in 2017 and is sending its coworking tentacles across Southeast Asia.</p> <p>Major property owners are getting into the act, partnering with flex-space companies and launching their own brands. Governments, noting the benefits of entrepreneurs to their economies, are adding their backing. And multinationals, employing what is referred to as a hub-and-spoke or core/flex approach, now consider flexible spaces an integral piece of their permanent operations, either locating entirely in such real estate or shipping younger, more mobile departments to such “off-sites”.</p> <p>Taken together, it’s little surprise that JLL Research found flexible space stock across Asia-Pacific charting a compound annual growth rate from 2014 to 2017 of 35.7 percent (compared with 25.7 percent in the United States and 21.6 percent in Europe), and the total stock managed by major operators growing by 150 percent.</p> <div class="pull-quotes-container">Everyone is familiar with the dotcom-boom-era ping pong tables, in-house baristas, and—for the luckiest ducks—free beer. They’ve been joined by a sophisticated suite of options appealing to a more diverse, and increasingly corporate, clientele</div> <p>Thailand alone has seen coworking spaces grow from four in 2012 to 132 in 2017—a figure expected to increase by 25 percent in 2018, according to Phattarachai Taweewong, senior manager at Colliers. By 2030, JLL predicts flexible space to comprise 30 percent of corporate commercial property portfolios across Asia-Pacific.</p> <p>Everyone is familiar with the dotcom-boom-era ping pong tables, in-house baristas, and—for the luckiest ducks—free beer. Such mancave perks haven’t gone the way of AOL IMs in this generation, but they’ve been joined by a sophisticated suite of options appealing to a more diverse, and increasingly corporate, clientele. More than letting networking happen organically, flexible work firms are purposefully creating programming and designing interiors to facilitate interaction.</p> <p>Hubba, Thailand’s homegrown first coworking space, has four distinct outlets in Bangkok each catering to different fields, from tech start-ups to artisans and craftsmen. Hubba offers a spectrum of useful seminars (Powerpoint pointers, customer-journey mapping), as well as personalized assistance with management, staffing, and even design.</p> <p>Spaces, another popular player in Bangkok, prides itself on style and flexibility, letting clients reserve anything from a locker to an enclosed area for a team. Their Chamchuri Square location won Best Co Working Space Development at the Property Guru Thailand Property Awards 2018—just a little piece of the global coworking operator founded in Amsterdam in October 2008. “And then Lehman Brothers collapsed,” the founders write on their website. “We thought this would be the end of it for us. But actually, we fit right in that spirit of age. Because of the crisis, everybody was re-thinking work.”</p> <p><img alt="Artist’s impression of Spaces Chamchuri Square, winner of Best Co Working Space Development at the 13th PropertyGuru Thailand Property Awards" src="/documents/10204/0/SPACES-CHAMCHURI-SQUARE-%281%29-compressor+%281%29.jpg/bd56bf05-7b44-4009-9903-5c9fdcf5eaab?t=1546499897860" /></p> <p>The Executive Centre (TEC), a pioneering Hong Kong-based flexible space provider founded in 1994 by Paul Salnikow, who had been seeking short-term office space for a Japanese firm expanding to London, credits the GFC as a gamechanger. “Prior to the financial crisis, TEC interacted with multinationals only when they were opening an office in far-flung locations,” says Pebble Lee, global public relations manager. Today, in Hong Kong alone, 67 percent of their clients are multinationals, including Apple, Morgan Stanley, Facebook and Twitter.</p> <p>TEC now has 20,000 members in Grade A offices in CBDs across 30 markets, having added 23 locations in 2017, and is expecting 30 percent annual growth from 2018. Beyond such prestige fittings as height-adjustable standing desks by 9AM, Herman Miller chairs, and Timothy Oulton furnishing, TEC is about all about innovation, their Hong Kong headquarters a “test kitchen—a place to trial new design concepts, products, and technologies,” Lee says.</p> <p>However, potential barriers belie the stunning growth of coworking spaces in the region. “Corporate culture in Asia tends to be more hierarchical, and not always in sync with the casual, flexible atmosphere,” says JLL research. “According to one industry observer, ‘In many markets across Asia Pacific, space is a reflection of status.’ Large organizations place high value on retaining brand identity and culture. Such concerns, along with the need to protect trade secrets and secure IT infrastructure, must be addressed.”</p> <p>It’s why the most sophisticated players act not only as builders, gatekeepers, event-planners and consultants, but also full-time IT departments, and in the case of WeWork, corporate fit-out contractors and developer partners.</p> <p><img alt="The common areas at a WeWork co-working space in Sanlitun, Beijing" src="/documents/10204/0/20180522_WeWork_Sanlitun_-_Common_Areas-7-compressor.jpg/602f832b-9c5c-47ea-afd9-2ca967c54ca6?t=1546500194327" /></p> <p>And those developers are coming in hot. A handful of large landlords control the supply (in Singapore’s CBD, the 15 largest landlords control 75 percent of Grade A office buildings; in Hong Kong East, three landlords run 80 percent of office buildings), entering the flex-space market themselves. Swire in Hong Kong—which has created its own brand, Blueprint, and inked deals with WeWork and The Great Room—and Ascendas in Singapore, says JLL, have realized they “can add value to their buildings and maintain or even extend their relationships with tenants by offering a diverse portfolio of core and flex space.”</p> <p>Even hotels have followed suit, looking at their business centers as community lounges, particularly in cities not recognized as regional commercial capitals. In Yangon, Shangri-La Group has opened a branch of FlySpaces. The new Shangri-La Hotel, Colombo, has a gorgeous new space called Co-nnect, with pods, private offices, meeting rooms with smart boards for both hotel guests and residents of the capital looking for a prestigious address to conduct business.</p> <p><a href="http://property-report.com/detail/-/blogs/better-together-making-the-most-of-mixed-use-developmen-4" target="_blank"><strong>More: Making the most of mixed-use developments</strong></a></p> <p>While it’s easy to be cynical about the corporatisation of what was once considered a hippy-dippy industry, you might say global expansion has brought the coworking market full-circle. In a recent survey by TEC, members say they value their community as defined by connecting, networking, and collaboration. The firm will soon roll out a client portal, MyTEC, enabling members worldwide to connect directly, give advice, help grow their businesses, and maybe start new ones.</p> <p>The way they might have found common ground while chilling in hammocks in a wired-up beach shack. It may not be sand-between-the-toes, but it is pie-in-the-sky community-minded. And isn’t that the whole point?</p> <p><em>This article originally appeared in <a href="https://magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">Issue No. 151</a> of PropertyGuru Property Report Magazine</em></p> Common grounds: the year in co-working spaces

<p><img alt="The Golden Bridge is lifted by two giant hands in the tourist resort on Ba Na Hill in Danang, Vietnam. Quang nguyen vinh/Shutterstock" src="/documents/10204/0/shutterstock_1152454088-compressor.jpg/4f08053b-085b-4c75-8a7c-2949990f1434?t=1546414490784" style="width: 1400px; height: 640px;" />Secondary markets may not offer the same dynamic business environment as Asia’s major cities. But with Chinese money pouring into the region and sunny seaside resorts developing into worthy digital hubs they offer fertile ground for big returns.</p> <p>In Cambodia, secondary markets have grabbed international headlines in the past year. Sihanoukville, on the southern coast, has been the poster-child for Chinese investment. Also growing in appeal is Poipet, a lesser-known city bordering Thailand.</p> <p>Speak to any tourist or expat who has at some point crossed the border into Poipet, and they’ll rarely have anything good to say about the place. In the absence of any real industry, Poipet has long been synonymous with rip-off merchants, scammers, gamblers, and other unsavoury sorts—a place where visitors cannot wait to leave and where respectable businesses fear to tread.</p> <p>But things appear to be changing.</p> <p>Since economic zones were launched, and a railway line linking Bangkok to Poipet and Phnom Penh completed last July, the city’s property market has taken a surprising turn. “Many investors from the outside are eyeing Poipet as a great investment destination,” says Hor Kunthea, CEO of Sokha Residences Group.</p> <p>Poipet, with its 30 odd casinos and a growing manufacturing industry, is seeing an expanding Chinese and Korean expat community, mirroring the early rumblings of Sihanoukville’s growth spurt. Sixteen real estate projects were completed in 2017, putting more than 1,500 units onto the market. Adding to this, Poipet governor San Sean Ho has announced the government will build a golf course, an artificial river, a giant garden, and floating market.</p> <div class="pull-quotes-container">In Sihanoukville, the market continues to ride its own investment boom. The sleepy town has undergone immense transformation from a faded backwater to a town jacked up on Chinese cash</div> <p>In more established Sihanoukville, the market continues to ride its own investment boom. The sleepy town has undergone immense transformation from a faded backwater to a town jacked up on Chinese cash.</p> <p>Sotharoth Som, managing director of KHCN Investment and Development Co., Ltd, the developer of the 43-storey Seagate Suite project in Sihanoukville, reports rental prices across the board have gone up five to 10 times, with those closer to the city centre being most expensive. Som says foreign investors, mainly from China, are driving the boom, as they “seek the opportunity to obtain higher rental yields than what is offered in their home countries, along with capital appreciation and low barriers to entry.”</p> <p><img alt="Sihanoukville’s Best Residential Development, according to the PropertyGuru Cambodia Property Awards 2018, is The Seagate Suite" src="/documents/10204/0/The-Seagate-Suite-by-KHCN-Investment-and-Development-Co-Ltd-won-Best-Residential-Development-%28Sihanoukville%29-at-the-Cambodia-Property-Awards-2018-for-web-151-compressor.jpg/140feb7c-54d2-4699-b8b8-c9545624ce84?t=1546416006849" /></p> <p>“The Sihanoukville market has emerged as an alternative condominium hub to the Phnom Penh market,” adds Som, pointing out, however, that compared to Phnom Penh, it is still in its infancy.</p> <p>Elsewhere in Asia, secondary cities are similarly enjoying Chinese-powered boosts as ties with the country strengthen.</p> <p>In the Philippines, warmer relations with China have seen developers benefit from rising demand from Chinese employees and investors, while partnerships between Filipino and foreign developers are expected to increase.</p> <p><img alt="Artist’s impression of The Courtyard at the Residences at The Sheraton Cebu Mactan Resort by Appleone Mactan Inc. (AMI), which took home the prize for Best Luxury Condo Development (Cebu) at the Philippines Property Awards 2018" src="/documents/10204/0/The-Residences-at-the-Sheraton-Cebu-Mactan-Resort-by-AppleOne-Mactan-Inc.-%28AMI%29-won-Best-Luxury-Condo-Development-%28Cebu%29-at-the-Philippines-Property-Awards-2018-%282%29-compressor.jpg/369bf1c1-12b0-4670-96f9-b52428e516d8?t=1546415703153" /></p> <p>“Leasing of condominiums in the secondary market remains strong, resulting in lower vacancy and arresting the decline in rents,” states a recent market update by Colliers International, a real estate services company. “Developers should look at housing opportunities in Cebu, Pampanga, and Laguna as offshore gaming firms have started to operate in these locations,” the company advises.</p> <p>Quite like Poipet, Davao City on the southern Philippine island of Mindanao is emerging an unlikely investment haven. The president’s former mayoral city once had a reputation for gun crime; today, property prices are rising. Units on Davao’s Dahican Beach, for example, now sell for PHP10,000 (USD185) to PHP12,000 per square metre compared with PHP1,000 and PHP1,500 per square metre in 2015. </p> <p>“They know that locators from outside are scrambling for any available space here in the city, not only because the President is from here, but because movement of businesses into Davao City has been going on for several years now,” Adrian Tamayo, a Mindanao expert, told the Business Mirror.</p> <p>Meanwhile in Da Nang, Vietnam, holiday homes and tourism-related properties are in high demand. The city’s latest attraction, a 150-metre golden bridge cradled by two enormous stone hands jutting out of the rocky highlands, has become a social media sensation. </p> <p><a href="http://www.property-report.com/detail/-/blogs/rising-dragon-boom-times-continue-in-vietnam-real-esta-3" target="_blank"><strong>More: Boom times continue in Vietnam real estate</strong></a></p> <p>“The main supply [in Da Nang] is in the hospitality and tourism segment,” according to Peter Frieske, founder and managing director of Central Vietnam Realty. Tourism, he says, is rising sharply and analysts predict it will continue to do so. </p> <p>Currently one of the top destinations for Chinese and South Korean visitors in Vietnam, Da Nang received more than five million visitors in the first seven months of 2018—up 30 percent over the same period in 2017, according to the Da Nang tourism department. Of this figure, more than 1.8 million were foreign arrivals, which are up by 54 percent.</p> <p>“The majority of developers are building resorts, with property for sale or condotel villas that are in some way offered with management programmes focusing on returns on investment rather than lifestyle residential properties. When it comes to quality residential projects, the supply is very low,” points out Frieske, adding this is due to the lack of industry in such places.</p> <p>In Phuket where the market has languished in recent years—year-on-year sales dropped 36 percent in 2017—analysts are optimistic 2018 might yield better results.</p> <p><img alt="The Botanica Luxury Villas won the highly competitive Best Villa Development (Phuket) category at the 2018 Propertyguru Thailand Property Awards" src="/documents/10204/0/Best-Villa-Development-%28Phuket%29-winner-for-2018-is-Botanica-Luxury-Villas-by-Botanica-Luxury-Phuket-Co.%2C-Ltd-for-web-151-compressor.jpg/0d1c6751-6bf3-4c63-8430-4b92cde23c40?t=1546415949403" /></p> <p>Knight Frank’s Lalita Siriboon, associate director of research, says Phuket’s condominium market is expected to improve in line with Thailand’s economy and as the expat population on the island grows. “Demand across the market will continue to be driven upwards by international homebuyers, investors, and expatriates, especially those from Mainland China, Russia, and Australia. Besides, we expected to see a larger portion of buyers from South Korea,” she says, adding there are also government efforts to raise the profile of Phuket as a digital hub and “Smart City,” which is forecast to boost real estate in Phuket by 2020 when the project is to be completed.</p> <p>Unlike capital cities where business and industry will always give people a reason to live there, the jury is still out on Asia’s secondary markets. As it is, investors need to carefully decide whether these “capital contenders” really are a place to call home, or just precariously thriving off clever marketing.</p> <p><em>This article originally appeared in <a href="https://magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">Issue No. 151</a> of PropertyGuru Property Report Magazine</em></p> 2018: the year in secondary property markets

<p><img alt="One of the top winners at the 2018 Asia Property Awards (Malaysia) is LBS Bina Group, whose LBS Skylake Residence won Best Mass Market Development (Condo) among other honours" src="/documents/10204/0/LBS-Skylake-Residence%2C-won-Best-Mass-Market-Development-%28Condo%29-for-web-compressor.jpg/ce043b3a-f941-4e8e-8c3f-88cb5bba93bb?t=1546244522761" style="width: 1000px; height: 667px;" /><span xml:lang="EN-GB">Spanning roughly a third of the earth</span><span xml:lang="EN-GB">’s landmass, the Asia-Pacific region is hom</span><span xml:lang="EN-GB">e to more than 60</span><span xml:lang="EN-GB"> percent</span><span xml:lang="EN-GB"> of the world’</span><span xml:lang="EN-GB">s population</span><span xml:lang="EN-GB">—</span><span xml:lang="EN-GB">and</span><span xml:lang="EN-GB"> its</span><span xml:lang="EN-GB"> rapidly growing </span><span xml:lang="EN-GB">cities are beginning to feel the pinch. </span> </p> <p paraeid="{fed141b5-1f33-4608-80d9-dd299f658d05}{53}" paraid="2136570234"><span xml:lang="EN-GB">The urgent need to create</span> <span xml:lang="EN-GB">quality </span><span xml:lang="EN-GB">affordable housing on limited land </span><span xml:lang="EN-GB">has become a defining iss</span><span xml:lang="EN-GB">ue across the region</span><span xml:lang="EN-GB">, where soaring property prices </span><span xml:lang="EN-GB">and stagnating</span><span xml:lang="EN-GB"> incomes </span><span xml:lang="EN-GB">have left many</span><span xml:lang="EN-GB"> struggling for a place to call home</span><span xml:lang="EN-GB">. </span> </p> <p paraeid="{fed141b5-1f33-4608-80d9-dd299f658d05}{169}" paraid="1758303828"><span xml:lang="EN-GB">But 2018 brought</span><span xml:lang="EN-GB"> several breakthroughs on this critical front. Recent elections ushered in new administrations in Hong Kong,</span><span xml:lang="EN-GB"> New Zealand</span><span xml:lang="EN-GB">,</span><span xml:lang="EN-GB"> and Malaysia</span><span xml:lang="EN-GB">,</span><span xml:lang="EN-GB"> all promising to cure their respective housing crises</span><span xml:lang="EN-GB"> as a top priority</span><span xml:lang="EN-GB">. </span> </p> <p paraeid="{fed141b5-1f33-4608-80d9-dd299f658d05}{193}" paraid="593067834"><span xml:lang="EN-GB">Innovative design and urban planning firms have cropped up across Asia, breathing new life into mass housing developments and </span><span xml:lang="EN-GB">putting sustainability front and </span><span xml:lang="EN-GB">centre</span><span xml:lang="EN-GB">. </span> </p> <p paraeid="{fed141b5-1f33-4608-80d9-dd299f658d05}{207}" paraid="971224038"><span xml:lang="EN-GB">Singapore</span><span xml:lang="EN-GB">’s public housing scheme, created in the 1960s, </span><span xml:lang="EN-GB">still shine</span><span xml:lang="EN-GB">s as the region’s gold standard</span><span xml:lang="EN-GB">. Today,</span> <span xml:lang="EN-GB">m</span><span xml:lang="EN-GB">ore than 90</span><span xml:lang="EN-GB"> percent</span><span xml:lang="EN-GB"> of the city-state’s </span><span xml:lang="EN-GB">5.6 million</span> <span xml:lang="EN-GB">residents </span><span xml:lang="EN-GB">are </span><span xml:lang="EN-GB">homeowners</span><span xml:lang="EN-GB">. While the Singapore model isn’t easily exportable, </span><span xml:lang="EN-GB">many of </span><span xml:lang="EN-GB">its </span><span xml:lang="EN-GB">neighbours</span> <span xml:lang="EN-GB">are finding their own unique solutions</span><span xml:lang="EN-GB">. </span> </p> <p paraeid="{fed141b5-1f33-4608-80d9-dd299f658d05}{255}" paraid="949502869"><span xml:lang="EN-GB">Malaysia </span><span xml:lang="EN-GB">suffers no shortage of innovative developers</span><span xml:lang="EN-GB">; with more land and lower costs than </span><span xml:lang="EN-GB">neighbouring</span><span xml:lang="EN-GB"> Singapore, the Southeast Asian nation seems to be enjoying a steady emergence from its years-long property malaise. </span> </p> <p paraeid="{fed141b5-1f33-4608-80d9-dd299f658d05}{255}" paraid="949502869"><a href="http://www.property-report.com/detail/-/blogs/better-together-making-the-most-of-mixed-use-developmen-4" target="_blank"><strong>More: Making the most of mixed-use developments</strong></a></p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{16}" paraid="84162373"><span xml:lang="EN-GB">Political headwinds may have helped. In May, Malaysian voters decisively ousted the administration of former Prime Minister Najib Razak</span><span xml:lang="EN-GB">, who was deeply embroiled in the 1MDB</span><span xml:lang="EN-GB"> embezzlement scandal. The new government of Mohammad Mahathir</span><span xml:lang="EN-GB">, who returned to power at the age of 93 on a promise of cleaning up corruption and shoring up investor confidence,</span><span xml:lang="EN-GB"> swiftly began a wholesale undoing of Naj</span><span xml:lang="EN-GB">ib’s policies</span><span xml:lang="EN-GB">.</span> </p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{34}" paraid="1965582510"><span xml:lang="EN-GB">Home-grown</span><span xml:lang="EN-GB"> firms were </span><span xml:lang="EN-GB">more than </span><span xml:lang="EN-GB">r</span><span xml:lang="EN-GB">eady for </span><span xml:lang="EN-GB">change</span><span xml:lang="EN-GB">,</span><span xml:lang="EN-GB"> and have seized the opportunity</span><span xml:lang="EN-GB">. LBS Bina Group, based in Kuala Lumpur, </span><span xml:lang="EN-GB">is among the most prolific </span><span xml:lang="EN-GB">when it comes to creating </span><span xml:lang="EN-GB">large scale, community-oriented housing, launching</span> <span xml:lang="EN-GB">successful </span><span xml:lang="EN-GB">projects</span><span xml:lang="EN-GB"> in the Klang Valley, Johor</span><span xml:lang="EN-GB">,</span><span xml:lang="EN-GB"> and K</span><span xml:lang="EN-GB">uala Selangor. </span> </p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{78}" paraid="193552742"><span xml:lang="EN-GB">LBS Bina swept this year’s Property Guru Asia Property Awards, recognized as Malaysia’s Best Developer and making off with a cache of othe</span><span xml:lang="EN-GB">r </span><span xml:lang="EN-GB">honours</span><span xml:lang="EN-GB"> for innovation in mass-</span><span xml:lang="EN-GB">market condominiums, corporate social responsibility</span><span xml:lang="EN-GB">,</span><span xml:lang="EN-GB"> and sustainability. </span> </p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{98}" paraid="778241562"><span xml:lang="EN-GB">Having already gained a strong foothold, the firm now seeks to lead the way by l</span><span xml:lang="EN-GB">owering</span><span xml:lang="EN-GB"> construction costs through an </span><span xml:lang="EN-GB">industrialized building </span><span xml:lang="EN-GB">system</span><span xml:lang="EN-GB"> of pre-cast concrete</span><span xml:lang="EN-GB"> that reduce</span><span xml:lang="EN-GB">s</span><span xml:lang="EN-GB"> the need for </span><span xml:lang="EN-GB">labour</span><span xml:lang="EN-GB">. Ong Wei Ling, </span><span xml:lang="EN-GB">a spokesperson</span> <span xml:lang="EN-GB">for</span><span xml:lang="EN-GB"> LBS</span><span xml:lang="EN-GB"> Bina</span><span xml:lang="EN-GB">, says the method results in </span><span xml:lang="EN-GB">“cleaner, neater</span><span xml:lang="EN-GB">,</span><span xml:lang="EN-GB"> and safer construction sites</span><span xml:lang="EN-GB">” completed in a fraction of the time, “</span><span xml:lang="EN-GB">helping developers deliver value to invest</span><span xml:lang="EN-GB">ors or buyer</span><span xml:lang="EN-GB">s awaiting their</span><span xml:lang="EN-GB"> dream home.”</span> </p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{152}" paraid="1795545625"><span xml:lang="EN-GB">Other firms such as UEM Sunrise Berhad, one of Malaysia’s largest developers, </span><span xml:lang="EN-GB">and OCR Berhad Group have been</span><span xml:lang="EN-GB"> among the most strident designers</span><span xml:lang="EN-GB"> of af</span><span xml:lang="EN-GB">fordable housing, the latter serving as project manager for the massive Yayasan Pahang development in Mukim Penor. Once completed, it is expected to create</span><span xml:lang="EN-GB"> roughly 25,000 units</span><span xml:lang="EN-GB">.</span></p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{152}" paraid="1795545625"><img alt="Citiesto by Kien A Corporation won Best Affordable Condo Development (Ho Chi Minh City) at this year’s Propertyguru Vietnam Property Awards" src="/documents/10204/0/Citiesto-by-KIEN-A-Corporation-for-web-151-compressor.jpg/e31235f8-535d-4ba9-bff8-7a3d7b04126e?t=1546244571355" /></p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{152}" paraid="1795545625"><span xml:lang="EN-GB">Smaller</span><span xml:lang="EN-GB"> than the U.S. state of Rhode Island, with nearly seven times the population</span><span xml:lang="EN-GB">,</span><span xml:lang="EN-GB"> Hong Kong is home to about 7.4 million people crammed into 2,754 square kilomet</span><span xml:lang="EN-GB">r</span><span xml:lang="EN-GB">e</span><span xml:lang="EN-GB">s packed with high-rises divvied </span><span xml:lang="EN-GB">up </span><span xml:lang="EN-GB">into </span><span xml:lang="EN-GB">miniscule</span><span xml:lang="EN-GB"> units</span><span xml:lang="EN-GB">. Year after year, this semi-autonomous region of China is named </span><span xml:lang="EN-GB">one of the most expensive cities</span><span xml:lang="EN-GB"> in t</span><span xml:lang="EN-GB">he world, a vital</span><span xml:lang="EN-GB"> gateway between East and West</span><span xml:lang="EN-GB"> that costs an average of </span><span xml:lang="EN-GB">USD</span><span xml:lang="EN-GB">28,000 per square meter</span><span xml:lang="EN-GB">.</span> </p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{219}" paraid="1540188546"><span xml:lang="EN-GB">“</span><span xml:lang="EN-GB">The Hong Kong problem is quite unique</span><span xml:lang="EN-GB"> and is complicated by the fact that Hong Kong just doesn’t have enough land</span><span xml:lang="EN-GB">,” says David Ji, director and head of research and consultancy for g</span><span xml:lang="EN-GB">reater China</span><span xml:lang="EN-GB"> at Knight Frank. “T</span><span xml:lang="EN-GB">hey have to squeeze as much out of it a</span><span xml:lang="EN-GB">s they can.” This conundrum has put Hong Kong’s policymakers in the uncomfortable position of h</span><span xml:lang="EN-GB">aving to either create new land</span><span xml:lang="EN-GB">masses or convert old</span><span xml:lang="EN-GB">er</span><span xml:lang="EN-GB"> properties for new use. </span> </p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{219}" paraid="1540188546"><img alt="Topped by an exclusive rooftop garden, Star Polaris 23 by Borey Peng Huoth Group won Best Affordable Condo Development in Phnom Penh this year" src="/documents/10204/0/Star-Polaris-23-by-Borey-Peng-Huoth-Group-for-web-compressor.jpg/6ecefbf3-e21a-4c56-b225-1a0cc998322b?t=1546244589690" /></p> <p paraeid="{17e113a2-d5eb-4931-9042-88f64f1a703c}{247}" paraid="1477051360"><span xml:lang="EN-GB">Chief Executive Carrie Lam, who assumed the territor</span><span xml:lang="EN-GB">y’s highes</span><span xml:lang="EN-GB">t office in 2017, has said </span><span xml:lang="EN-GB">solving the city’s housing crisis </span><span xml:lang="EN-GB">is </span><span xml:lang="EN-GB">among </span><span xml:lang="EN-GB">her top priorities. </span><span xml:lang="EN-GB">While plans to build affordable hous</span><span xml:lang="EN-GB">ing on roughly 1,700 hectares of</span><span xml:lang="EN-GB"> artificial islands</span><span xml:lang="EN-GB">—</span><span xml:lang="EN-GB">a project called </span><em><span xml:lang="EN-GB">Lantau Tomorrow Vision</span><span xml:lang="EN-GB">—</span></em><span xml:lang="EN-GB">have come under criticism, she may have few viable alternatives to land reclamation. Property experts sa</span><span xml:lang="EN-GB">y Lam has made strides with </span><span xml:lang="EN-GB">long-term housing goals, but is bound to face opposition because she</span><span xml:lang="EN-GB"> has yet to come up with short-</span><span xml:lang="EN-GB">term solu</span><span xml:lang="EN-GB">tions to help the ma</span><span xml:lang="EN-GB">ny Hong Kongers who need homes now</span><span xml:lang="EN-GB">. </span> </p> <p paraeid="{ddf9bf7c-2a47-4c78-98d7-98eb596c7559}{42}" paraid="580463262"><span xml:lang="EN-GB">“</span><span xml:lang="EN-GB">A</span><span xml:lang="EN-GB"> comprehensive proposal has been tabled, which has never happened before</span><span xml:lang="EN-GB">, </span><span xml:lang="EN-GB">and </span><span xml:lang="EN-GB">a</span><span xml:lang="EN-GB">s a long-term pr</span><span xml:lang="EN-GB">oposal this is a positive step,” says </span><span xml:lang="EN-GB">Ji. </span><span xml:lang="EN-GB">“But</span><span xml:lang="EN-GB"> a</span><span xml:lang="EN-GB">ll these measures are </span><span xml:lang="EN-GB">planned fa</span><span xml:lang="EN-GB">r</span> <span xml:lang="EN-GB">in </span><span xml:lang="EN-GB">the future, we’re looking at </span><span xml:lang="EN-GB">five</span><span xml:lang="EN-GB"> to </span><span xml:lang="EN-GB">10 years down the line, and b</span><span xml:lang="EN-GB">uyers still find it difficult to get on the property ladder.</span><span xml:lang="EN-GB">”</span><span xml:lang="EN-GB"> While prices have risen for 20 consecutive months, Ji says he expects some relief by year’s end. </span> </p> <div class="pull-quotes-container">People are rethinking affordable housing—not as a burden that nobody wants to build, but trying to put affordable housing into private developers’ plans</div> <p paraeid="{ddf9bf7c-2a47-4c78-98d7-98eb596c7559}{92}" paraid="515678092"><span xml:lang="EN-GB">S</span><span xml:lang="EN-GB">everal government</span><span xml:lang="EN-GB">s</span><span xml:lang="EN-GB"> in the Asia-Pacific</span><span xml:lang="EN-GB"> have</span><span xml:lang="EN-GB"> also</span><span xml:lang="EN-GB"> mo</span><span xml:lang="EN-GB">ved to limit foreign ownership</span><span xml:lang="EN-GB">—</span><span xml:lang="EN-GB">due in part </span><span xml:lang="EN-GB">to concerns about Chinese expansionism</span><span xml:lang="EN-GB">—</span><span xml:lang="EN-GB">b</span><span xml:lang="EN-GB">ut experts say these policies are</span><span xml:lang="EN-GB"> misguided. </span><span xml:lang="EN-GB">New Zealand’s recent ban on foreign residential sales prompted the International Monetary Fund to warn that the policy was discriminatory. </span> </p> <p paraeid="{ddf9bf7c-2a47-4c78-98d7-98eb596c7559}{130}" paraid="2088562221"><span xml:lang="EN-GB">When Malaysian premier Ma</span><span xml:lang="EN-GB">hathir suggested curbing foreign</span><span xml:lang="EN-GB"> ownership of </span><span xml:lang="EN-GB">units in </span><span xml:lang="EN-GB">the </span><span xml:lang="EN-GB">USD</span><span xml:lang="EN-GB">100 billion</span><em><span xml:lang="EN-GB"> Forest City </span></em><span xml:lang="EN-GB">project, the idea sent a chill through the investment community. “</span><span xml:lang="EN-GB">Permitting foreign investors to buy new housing obvious</span><span xml:lang="EN-GB">ly increases demand for housing,” says Brendan Coates, a fellow at Melbourne-based think tank the Grattan Institute, “b</span><span xml:lang="EN-GB">ut supply also increases if foreign investors enable developers to build more housing than otherwise</span><span xml:lang="EN-GB">.” </span> </p> <p paraeid="{ddf9bf7c-2a47-4c78-98d7-98eb596c7559}{134}" paraid="1161917583"><span xml:lang="EN-GB">China’s own reform of land and financial policies are working to keep investors well within its borders. Outbound capital limits have led many Chinese to invest closer to home, while land use regulations have been altered to require a percentage of mixed-income housing on large scale property developments to meet growing demand. </span> </p> <p paraeid="{ddf9bf7c-2a47-4c78-98d7-98eb596c7559}{170}" paraid="1718922565"><span xml:lang="EN-GB">“</span><span xml:lang="EN-GB">I think in the greater C</span><span xml:lang="EN-GB">hina regi</span><span xml:lang="EN-GB">on, people are rethinking affordable</span><span xml:lang="EN-GB"> housing</span><span xml:lang="EN-GB">—</span><span xml:lang="EN-GB">not as a burden that nobody wants to</span><span xml:lang="EN-GB"> build, but trying to put affordable</span><span xml:lang="EN-GB"> housing into private </span><span xml:lang="EN-GB">developers’ plans,” </span><span xml:lang="EN-GB">says</span><span xml:lang="EN-GB"> Ji, of Knight Frank</span><span xml:lang="EN-GB">.</span> <span xml:lang="EN-GB">“</span><span xml:lang="EN-GB">The trend is changing from ‘whoever pays the highest price gets the land,’ to a more </span><span xml:lang="EN-GB">targeted, controlled use of property</span><span xml:lang="EN-GB">.</span><span xml:lang="EN-GB">”</span> </p> <p paraeid="{ddf9bf7c-2a47-4c78-98d7-98eb596c7559}{170}" paraid="1718922565"><em>This issue originally appeared in <a href="https://magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">Issue No. 151</a> of PropertyGuru Property Report Magazine</em></p> Affordable housing sets the agenda in Asia-Pacific

<p><img alt="The lake at Celadon City, winner of multiple PropertyGuru Vietnam Property Awards this year, including Best Mixed Use Landscape Architectural Design" src="/documents/10204/0/Sustainability-year-end-special-151-for-web-compressor.jpg/f63c772c-a71a-4a89-bcde-b2cab331756b?t=1545891457562" style="width: 1000px; height: 667px;" /></p> <p>Ten years ago, sprawling conurbations like Saigon or Manila—notorious for their infrastructure and environmental challenges—weren’t obvious destinations for seeking out bastions of sustainability. Today, these cities are seeing the rise of world-class projects displaying green credentials, enticing middle-class apartment-seekers who are forming an increasingly sizeable tranche of society in Vietnam and the Philippines.</p> <p>By 2020, Vietnam’s average annual per capita income is predicted to almost double, from USD1,735 in 2016 to USD3,400. With its large population of citizens under 35 transitioning from a primarily rural economy to an urban one, Vietnam’s property market is proving a lucrative environment for developers, tenants, and both local and foreign buyers, with investors from China, South Korea, Singapore and Malaysia pumping huge sums into the building sector.</p> <p>In Ho Chi Minh City, two companies are paving the way for sustainable real estate. Gamuda Land, the property development arm of Malaysia’s leading engineering and construction group, started building its 82-hectare Celadon City in 2010, making it the first nature-inspired enclave within this traffic-choked megalopolis. </p> <p>Prioritising sustainable living from the outset, Gamuda introduced such innovations as a rain harvesting system that utilises energy-efficient water tanks to collect rainfall around the property and transfer water to irrigation areas. The integrated township in Tan Phu district, home to 7,300 apartments across four precincts that can accommodate 25,000 people, won the Best Mixed Use Landscape Architectural Design gong at the PropertyGuru Vietnam awards this year.</p> <p><a href="http://property-report.com/detail/-/blogs/can-green-buildings-turn-the-tide-in-climate-acti-10" target="_blank"><strong>More: Can green buildings turn the tide in climate action?</strong></a></p> <p>“Celadon City has more than 16 hectares dedicated to lush parklands [that afford] residents the privilege of enjoying nature,” says communications executive Tran Nam Phuong, adding that the Cultural Village, Central Park, the Celadon Sports & Resort Club, and other gathering places within the property offer a sense of community. It’s a concept that’s proven influential, as demand for green living spaces are increasing. </p> <p>A similar success story is Gamuda City, another landmark project in Southern Hanoi, which confronted the Yen So lake area’s chronic water pollution, garbage disposal, and sewage issues head on. Far beyond building a condo, the development effected the complete rehabilitation of a polluted suburban wasteland, leading to significant public health benefits.</p> <p>Making major inroads into HCMC’s sustainable building boom is CapitaLand Vietnam, whose luxurious, 102-room D1MENSION development in Cau Kho is the first boutique housing development in Saigon—one among CapitaLand’s 13 green estates in the city. Themed projects including De La Sol, D2eight, and d’Edge Thao Dien offer new condominium alternatives to young professionals.</p> <p>“CapitaLand remains committed to building a greener future for Vietnam,” says CEO Chen Lian Pang. “Lowering our environmental footprint creates value for our stakeholders. We incorporate environmental sustainability in all stages of a project, [from] design and construction to operations.” A key wealth creator in the country, the Singapore-headquartered company—which scooped 13 PropertyGuru Vietnam awards this year, including Best Developer, Best Condo, and Special Recognition for Sustainable Development—has built almost 5,000 apartments across six other cities, from Halong to Nha Trang.</p> <p><img alt="Winner of Best Green Development at this year’s Propertyguru Asia Property Awards (Sri Lanka), Clearpoint Residencies Rajagiriya come with self-sustaining gardens instead of ordinary balconies" src="/documents/10204/0/Clearpoint-Residencies%2C-Rajagiriya%2C-Sri-Lanka-by-Maga-Engineering-%28Pvt%29-Ltd-%26-Milroy-Perera-Associates-%28Pvt%29-Ltd.-won-Best-Green-Development-%282%29-compressor.jpg/98d681e9-5b00-41ed-9632-44756bcba7ae?t=1545891791227" /></p> <p>In Metro Manila—another densely populated Southeast Asian city with a burgeoning middle- and affluent class—Taguig-based ArthaLand is a home-grown leader in marrying sustainable credentials with cutting-edge architecture. The property arm of the Century Pacific group has carved a niche in the Philippine market by exclusively focusing on properties that adhere to global and national standards in green buildings.</p> <p>Being the only development in the Philippines to have received the coveted gold certification in the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program, its flagship dual-towered Arya Residences in Bonifacio Global City is a milestone in the country for its design and eco-friendly features. Arya Residences’ construction naturally channels the breeze, its balconies and ledges lending natural shade into the units, adding meaningful outdoor space even as daylight reaches 75 percent into the indoors. Interiors are decorated using paints and resins with low volatile organic compound emissions, while built-in fixtures and appliances deploy advanced technology to reduce environmental impact and usage cost.</p> <p>Winning this year’s “Special Recognition in Sustainable Development” at the PropertyGuru Philippines Property Awards, ArthaLand emphasises human advantages. Arya Residences encourages its residents to live a more environmentally conscious, cost-efficient, and healthy lifestyle. Their advertising tagline, “Green is the new luxury”, is echoed by Raymond Rufino, chairman of the Philippine Green Building Council. “[Sustainability should be more than just achieving efficiency and cost-effectiveness for your property,” says Rufino. “The new frontier for green buildings is improving the health and wellbeing of the people who live, work and play [within your property]. This is a more powerful argument to support going green.”</p> <p>Angie de Villa-Lacson, ArthaLand president and CEO, stresses sustainable architecture has a ripple effect not just for residents, but the property sector at large. “Standardising green measures is a major step in encouraging developers to take sustainability seriously,” she says. “Greening should go beyond landscape and waste management. To fully reap the benefit of sustainability, developers should be able to measure the inputs and outputs of our buildings’ eco-friendly features.”</p> <div class="pull-quotes-container">There has never been a better time for investors to go green. And with developers around Asia adopting sustainable practices,the real estate scene in the region has rarely looked more mindful</div> <p>Further west, Sri Lanka is proving another sustainability powerhouse, largely due to Maga Engineering, the country’s largest construction company whose work covers healthcare, hospitality, transport, and water supply. As the builders of the world’s tallest vertical garden and the first LEED Platinum-rated clothing factory, Maga comes forearmed with impressive green credentials. Its Clearpoint Residencies in the Colombo suburb of Rajagiraya is its most forward-looking residential project to date.</p> <p>Clearpoint’s 171 apartments come with a self-sustaining garden instead of a balcony; its planted terraces and tree plantations absorb sound, boost oxygen levels, provide shade, and reduce heat. Other eco-boasts include cross-ventilated apartments, solar panels, and an automated drip-irrigation system that keeps terraces watered. </p> <p>“Each apartment functions as its own microhabitat, creating a synergy between occupants and their environment,” says sustainability director Mega Kularatne, pointing out that while Clearpoint demonstrably occupies the high-end housing category, innovations inside and outside the building—including waste water recycling which reduces main water usage by 45 percent—actually serve to reduce homeowners’ maintenance costs.</p> <p>With the future of the planet a pressing concern, there has never been a better time for investors to go green. And with developers around Asia adopting more sustainable practices, the real estate scene in the region has rarely looked more mindful.</p> <p><em>This article originally appeared in <a href="https://www.magzter.com/TH/PropertyGuru-International-(Thailand)-Co.,Ltd/Property-Report/Business/" target="_blank">Issue No. 151</a> of PropertyGuru Property Report Magazine </em></p> Innovative firms blaze trail for sustainable real estate in Asia