Investing in Taiwan Commercial Property: A Complete Guide

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Taiwan was named the world’s third-best investment destination by US-based Business Environment Risk Intelligence SA in 2018, only behind Singapore and Switzerland.

This small island has gained more interest since the trade war intensified between the US and China. Besides, the protests in Hong Kong have resulted in more investments from Hong Kong.

Major local and foreign companies, such as Google, plan to invest hundreds of millions of US dollars in Taiwan in the coming years. The commercial property market has been strong recently and is not as overpriced as the residential market.

In this article, I explain how it works when investing in Taiwan’s commercial property market as a foreigner, how much you need to pay in tax, where you should buy, and more.

Let’s get started.

Can foreigners buy commercial property in Taiwan?

Taiwan has favorable foreign property ownership regulations compared to Mainland China and many Southeast Asian countries. Here, you can purchase property as an individual or through a company.

Having said that, you need government approval first, which is based on a reciprocal arrangement. Simply put, Taiwanese companies and private individual investors should be allowed to acquire real estate in your home country or in the country where your company has its main office.

Mainland Chinese are subject to stricter regulations and have been able to invest in Taiwan real estate since 2002. On the contrary to other foreigners, they need to make applications to the Investment Commission of the Ministry of Economic Affairs (MOEA) and sometimes to the MOI.

You can also establish a local company referred to as Foreign Investment Approval (FIA) companies. This will allow you to acquire and lease real estate in Taiwan. Continue reading Investing in Taiwan Commercial Property: A Complete Guide

Australia Property Market Outlook 2020: A Complete Overview

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Australia is the to-go place for people who wish to live in a stable nation, offering great education, and a comfortable climate. Foreign investors, many from China, have flooded the market and real estate prices have reached record-breaking levels.

Worth mentioning is that Australia has never experienced a major decline and didn’t suffer much during the subprime crash 2008, when prices continued upwards. There are several interesting reasons behind this, of course.

In this article, I explain how Australia’s property market has performed in the past years and what the predictions are for 2019.

Australia’s Property Market in Previous Years

Australia’s property market was booming in 2016 to 2017 and we saw house prices breaking all-time high records. The millennials were even told to give up eating avocado toast if they ever wanted to afford a house.

According to Huffington Post Australia, the house price growth in recent years are related to:

  • Investor activity in Sydney and Melbourne
  • Low interest rates
  • Tax incentives such as negative gearing and capital gains tax discounts

Theconversation.com has an illustrative chart that shows how housing prices have continuously been in decline, after hitting a peak in the 3rd quarter of 2017. It’s also the first annual decline since 2012.

A lower demand for homes and a tightening of lending to investors played a big role in the price falls according to the ABS Chief Economist, Bruce Hockman. Regulators have progressively clamped down risky lending, such as interest-only mortgages.

With around 40% of Australians having interest-only mortgages, it’s a wise choice. The banks have toughen-up previously lax expense and income verification. Continue reading Australia Property Market Outlook 2020: A Complete Overview

Thailand Property Market Outlook 2020: A Complete Overview

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Buying property overseas is one of the biggest investments many foreigners make. Before you buy assets in a developing market, you must do thorough research and understand what you can expect from the market in the coming years.

Thailand is undoubtedly one of the most popular choices foreigners have when buying property overseas. In this article, I will explain what our predictions are for Thailand’s property market in 2020.

Topics covered in this article:

  • Thailand’s Property Market in Previous Years
  • Pattaya’s Property Market
  • Bangkok’s Property Market
  • Chiang Mai’s Property Market
  • How will Thailand’s property market perform in 2020?
  • Are there any other positive aspects of investing in Thai property?
  • New Property Projects in Bangkok
  • Thailand’s Demographic Issues

Thailand’s Property Market in Previous Years

Thailand’s property market has been in a slow but consistent upward trend for over a decade now. The main reason is the increasing number of foreigners that visit and live in Thailand.

Around 88,000 foreigners applied for work permits in Q2 2018 in Bangkok alone and the number continues to rise. To put it in some context, in Q1 2015, 78,000 foreigners applied for work permits. That’s an increase of 10,000 expats per quarter, or 40,000 yearly.

A better economic outlook, higher take-up, and occupancy rates have resulted in this upward trend. Still, the market performance differs much between cities.

For example, Bangkok and Chiang Mai have experienced higher growths, while places like Cha Am, Hua Hin, Khao Yai, and Pranburi have seen slower growth, or even stagnated. Continue reading Thailand Property Market Outlook 2020: A Complete Overview

Dubai Real Estate Market Outlook 2020: A Complete Overview

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Dubai is the Middle East’s equivalent to Hong Kong and relies less on oil production compared to neighboring countries. It’s been a hot-spot for overseas investors and the real estate market grew remarkably throughout the 2000’s.

Having said that, Dubai’s property market has not performed that well in the past years. There are plenty of reasons for this.

If you plan to buy real estate in Dubai, you must know how healthy the market is and what you can expect for the coming year. In this article, we review how the market has behaved in previous years, presenting data and statistics, and share what we expect for 2020.

Dubai’s Property Market in Previous Years

The market has been turbulent since mid-2013 and had some of its worst years in 2015 – 2016, when real estate prices declined significantly. The market has been in a recovery mode in 2017 – 2018.

Prices and rents didn’t fall as much during these years compared to previous years. For example, the average sales price decreased by around 5.6% in 2017 according to Savills, while the average rents fell by 7%. Continue reading Dubai Real Estate Market Outlook 2020: A Complete Overview

Investing in Commercial Property in China: Complete Guide

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China’s residential property market has been in limbo in the past years, but we’ve seen increased activity in its commercial property market recently.

Having said that, China faces many issues due to a weakening economy that relies heavily on real estate, demographic challenges, and an escalating trade war with the US.

Besides, it’s not the easiest place to acquire property as a foreigner due to strict foreign ownership regulations.

In this article, we review the following topics:

  • Can foreigners buy commercial property in China?
  • The Commercial Property Market in China
  • Best Cities to Buy Commercial Property in China
  • Commercial Property Taxes

Can foreigners buy commercial property in China?

This is not a yes or no question, as it depends if you buy as a private investor or through a local company. Let’s review both options to see what kind of property that foreigners can get hold of in China.

Individual Investors

China is one of the least preferred destinations among private individuals who wish to capitalize on growing real estate markets in Asia. Most buyers of residential property buy for personal reasons.

Truth be told, China has one of the most overvalued markets in the world, low rental yields, and comparably strict foreign ownership regulations. For example, you must live there for at least one year before you can buy one residential unit.

Yes, you heard that right – one unit.

On top of that, you’re not allowed to own land like in Japan, Korea, and Malaysia. Continue reading Investing in Commercial Property in China: Complete Guide

China Real Estate Market Outlook 2020: A Complete Overview

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China’s real estate market has grown immensely in the past years and is a key component in the Chinese economy. We’ve seen both ups and downs with a big correction in 2015-2016, during the stock-market crash.

Currently, China’s economy has slowed down and we see an escalating trade war with the US. So how will this affect the market?

In this article, we take a look at how China’s real estate market has performed the past years and what the predictions are for 2020.

China’s Real Estate Market in Previous Years

China’s real estate market is an important driver of the Chinese economy and accounts for 30% of the total GDP. The market is currently one of the fastest-growing markets in the world.

As prices have surged since the 2000s, setting foot into the housing market has become popular to gain wealth. Many of the luxury goods and sports car you see in places like Shanghai (there are a few) is bought with money made from real estate.

According to the National Bureau of Statistics, the major cities have seen higher increases in residential house prices. This is mainly the case for first-tier and second-tier cities like Shanghai, Beijing, and Shenzhen.

Showing you some interesting data, below you can see a summary of the average real estate prices per square meter from 2013 to 2016, which speaks for itself. Continue reading China Real Estate Market Outlook 2020: A Complete Overview

Hong Kong Property Market Outlook 2020: A Complete Overview

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Hong Kong had a tough time in 2019 and suffered from a weakened economy, the ongoing trade war between the US and China, and violent protests.

All property sectors were affected badly by these events, especially the retail market, which saw some of the biggest declines. With a new year ahead, it’s time for us to analyze what we can expect from Hong Kong’s property market in 2020.

In this article, we review the following:

  • Hong Kong’s Property Market in Recent Years
  • Why is Hong Kong property so expensive?
  • What can I expect from Hong Kong’s property market in 2020?
  • Is buying property in Hong Kong a good investment?

Hong Kong’s Property Market in Recent Years

Hong Kong’s property market is the most expensive in the world, outperforming places like Singapore and Sydney. Real estate prices have increased by double digits, making property inaccessible to many locals.

In the second quarter of 2018, the year-on-year price increase was 13.5%, a bit higher than the price increase in the first quarter of 2018. At the same time, the average sales value per transaction increased by 8.4% according to Colliers.

Colliers also reported that the supply of residential units increased by 12% in 2018 compared to 2017. The luxury residential rents increased by 4% in 2018.

Nowadays, you can buy a 10-bedroom house in many European countries for the same price of a 28 square meter apartment in Hong Kong. Besides, the average price per square meter in Ho Chi Minh City is only 14% of that in Hong Kong.

Hong Kong Property Prices in 2019

Looking at real price levels, the average price per square meter was around USD 22,507 in April 2019. That’s almost twice as much as Singapore’s average of around USD 11,442.

Prices have grown strongly for over a decade, except for a brief slump in 2016 due to the mortgage rate hike. We also saw price decreases during the second half of 2018 and 2019. The Centa-City Leading Index CCL shows the price increases from 1996 – August 2019, which speaks for itself. Continue reading Hong Kong Property Market Outlook 2020: A Complete Overview

Malaysia Property Market Outlook 2020: A Complete Overview

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Malaysia is one of the most foreign-friendly countries in Southeast Asia for real estate investors. Here, you have access to almost any kind of property types and you can even buy land as a foreigner.

Having said that, if you plan to buy real estate in Malaysia, you must understand how healthy the market is and what to expect for the coming years.

In this article, I will explain what our projection is for Malaysia’s property market in 2020, based on the current climate and historical data. First, I’ll start explaining how the market performed in the past years.

Topics covered in this article:

Malaysia’s Property Market in Previous Years

Malaysia’s property market has been in decline since 2012. Even if prices still rise, we’ve seen modest increases in the past five years. Continue reading Malaysia Property Market Outlook 2020: A Complete Overview

Philippines Real Estate Market Outlook 2020: A Complete Overview

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Philippines has become one of the hotspots for foreign property buyers in Southeast Asia. With favorable demographics and an increasing middle class, Metro Manila has undoubtedly seen the biggest interest.

Foreign corporations move to the region, setting up offices and operations in places like Cebu and Davao, where labor costs are low.

In this article, I explain how the Philippine property market has performed in the past years. I’ll also share my predictions on how I believe that the market will perform in 2020.

Keep in mind that foreseeing how a market will perform in the coming years is not the easiest task on hand. If you have any information you would like to share, you can share a comment at the end of the article.

Topics covered in this article:

The Property Market in Previous Years

Continue reading Philippines Real Estate Market Outlook 2020: A Complete Overview

Vietnam Real Estate Market Outlook 2020: A Complete Overview

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Vietnam opened up to foreign property investors as late as 2015 and has experienced a fast growth since. Buyers from Hong Kong, Mainland China, Singapore, and Korea in particular, see Vietnam as a lucrative market with high ROIs.

Yet, if you plan to buy property in Vietnam, you must understand the current market climate and what you can expect in the coming years. In this article, I explain how the market has performed and what my predictions are for Vietnam’s property market in 2020.

In this article, we review the following:

How has Vietnam’s real estate market performed in the past years?

Vietnam has emerged as a thriving and fast-growing real estate market in Southeast Asia. Suffering from a housing bust in 2009, the market recovered in 2013 and has seen constant and fast growth.

The main reasons why investors see Vietnam as the number one choice in Asia are:

Continue reading Vietnam Real Estate Market Outlook 2020: A Complete Overview