Infrastructure Surge May Lead to Property Boom for South East Asia

Published on June 29, 2011 by Anna Jay · No Comments

Growth within the construction industry and a resurgence in the infrastructure of South East Asia looks set to lead to a significant rise in property investment throughout the area over the next few years.

Kuala Lumpur, Hanoi and Bangkok are all set to benefit significantly from the fresh interest. Below is a list of key reasons why it may be time to seriously consider South East Asia as a viable client for your investment portfolio:

Significant infrastructure plans – Countries within South East Asia are projected to invest close to USD 32 billion in ambitious transport infrastructure plans over the next four years, according to KPMG. This represents an average growth for that sector of 3.5 year, as well as a serious commitment to an area of the SE Asian economy that has seen little recent attention paid to it. Credit Suisse analyst Danny Goh backs up this belief, stating “We believe infrastructure spending is poised to rise sharply in the coming quarter and could remain robust in the next 2 to 3 years.”
Change in confidence behind Asian contractor shares – The majority of South East Asian contractor shares have not been performing all that well in the market this year, but the feeling within the continent suggests that may be about to change. Established property and plantation companies such as IJM and Sino-Thai have been attracting praise from potential investors and this is likely to have a direct affect on their market value in the near future.
Growth in the construction sector – Growth in the construction sector appears inevitable over the next few years as governments commit to multibillion dollar investment projects. The domino effect will be unavoidable and the healthier the construction sector becomes, the more time and energy they will then devote to new property.

As China keeps a close eye on the situation, other leading nations are sure to follow. South East Asia certainly seems to be heading for intriguing times and the time may be at hand to purchase property in the area before momentum gathers and prices inevitably rise.

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