Each year, the AsiaPropertyHQ Index ranks countries in the Asia Pacific region, based on how attractive they are for individual investors. The score is based on the the following factors: Taxes, Visa Options, Yields, Land Ownership and Capital Controls.
|Malaysia: 100 / 140 Points
Open to investors, it’s getting easier to obtain local mortgages as a foreigner, albeit still restricted. No restrictions to own land, except for agricultural- and bumiputera reserved land. Offers long term visas through its MM2H program, which will also gives you great advantages when buying real estate. Mainly fails due to a high rental income tax. Rental yields are comparatively high.
|Vietnam: 97 / 140 Points
Opened up to foreigners in 2015, the real estate market has one of the best potentials. One of the fastest growing economy in the World and with the best rental yields. Dempographically, a luring country and with a booming tourism industry. Much infrastructural investment planned.
|Philippines: 90 / 140 Points
Has a rapidly growing economy and with great rental yields. Mainly fails due to the fact that foreigners cannot own land, a high rental income tax and somewhat strict capital controls.
|Thailand: 90 / 140 Points
Thailand is an attractive spot among investors, with competitive taxes. Rental yields are comparatively good, mainly fails due to the fact that foreigners cannot own land and due to somewhat strict capital controls.
|Japan: 85 / 140 Points
Personally, I’d rather see Cambodia at this spot. However, foreigners have no restrictions to buy houses or land in Japan. Transparent system with low corruption. The capital gains tax is somewhat high, but foreigners have no restrictions to own land. Capital controls are not as strict compared to developing countries. Much investment planned for the Olympics in 2020.
|Cambodia: 78 / 140 Points
Cambodia has a lot pf potentials and has one of the fastest growing economies in the region. Demographically, Cambodia is well-positioned and corporations are pouring in. Mainly fails due to a high capital gains tax, rental income tax and due to the fact that foreigners cannot own land.
|Indonesia: 67 / 140 Points
Indonesia has good potentials, with great yields. But foreign ownership regulations are still not favorable to investors. Foreigners can neither own land nor condos. Very high taxes.
|Korea: 63 / 140 Points
Korea has many similarities to Japan, in terms of foreign ownership regulations and visas. Competitive taxes. Foreigners have no particlar problems to get freehold ownwership of houses or land. Fails mainly due to low yields and high taxes.
|Singapore: 55 / 140 Points
Singapore has a safe and transparent system, with low corruption. But it’s difficult to buy land as a foreigner, you need to be a permanent resident for at least 5 years and make significant financial contributions. Foreigners are obliged to pay an additional Buyers Stamp Duty of 15%. Competitive capital gains tax for buy and hold (0%).
|Taiwan (ROC): 55 / 140 Points
Foreigners are able to own land and houses. Competitive stamp duty. Fails mainly due to high taxes and low yields. The price to income ratio is one the most extreme in the world.
|Hong Kong SAR (PRC): 51 / 140 Points
Hong Kong is a developed state and has a transparent system. However, even if leasehold is safe, foreigners can’t own land and are subject to an additional Buyers Stamp Duty of 15%, and a sellers stamp duty of at least 10%. With 0% capital gains, and a transparent legal system, Hong Kong still performs fairly well. Hong Kong will always be an attractive spot for property buyers.
|China: 50 / 140 Points
China has competitive taxes, but it’s generally harder to get visas (even if Americans can get 10 year visas, we need to take other nationalities into consideration). Foreigners can’t own land and yields are low in general.
Total property investment value of US$300,000 by non-resident foreigners with a holding period of 5 years, and with a monthly rental income of USD 1500 is assumed
|1A. Can foreigners own land?||A. Yes: +10 points
B. No: 0 points
|2A. Stamp duty||A. < 3%: +15 points
B. 3% < 10%: +10 points
C. > 10%: 0 points
|2B. Property Tax||A. < 1%: +10 points
B. 1% < 3%: +5 points
C. > 3%: 0 points
|2C. Capital Gains Tax (or SSD)||A. < 6%: +15 points
B. 6% < 10%: +10 points
D. > 10%: 0 points
|2D. Rental Income Tax||A. < 10%: +10 points
B. 10% < 20%: +5 points
C. >20%: 0 points
|3. Capital Controls||A. No / Limited Capital Controls: +10 points
B. Capital Controls: 0 points
|4. Visas||A. Long term visa, easing buying process: +10 points
B. Tourist visas: 0 points
|5. Rental Yields||Rental yield multiplied with a factor of 10 (for example, if Hong Kong has a rental yield of 2.6%, then 26 points will be dedicated)|