Organisation:
Resource Link:
A guide to the real estate industry
Published in 2021, Link
My Key Takeaways
Although most companies I work with are highly digital and pro work-from-home practices , not that many can run away from real estate for their innovation, manufacturing and HQ needs.
Real estate is immovable, and intricately linked to local laws, customs and regulations.
What therefore are the restrictions/pitfalls on foreign investment in real estate across Singapore and Southeast Asia (SEA)?
Sharing my takeaways from this useful guide by Rajah & Tann Asia, featuring the following countries:
– Cambodia
– China
– Indonesia
– Laos
– Malaysia
– Myanmar
– Philippines
– Singapore
– Thailand
– Vietnam
Each country report covers topics like legal framework, types of real estate, ownership and tenure, taxes, competent governmental body and other local stakeholders
For example, do you know that:
🇮🇩 Indonesia – by law, only Indonesian citizens can hold and transfer freehold titles (an ownership right over a plot of land that is hereditary in nature).
In practice, foreign individuals and corporations (with a representative office in the country) may still buy freehold land from Indonesian citizens by converting the freehold title into a suitable land title (namely, the right to build, right to use, or right to cultivate).
🇸🇬 Singapore – many industrial properties in the country are managed and administered by the government agency JTC Corporation (“JTC”).
Beyond tender and purchases by way of private treaty from an existing industrialist, industrial properties can also be allocated by JTC (by application) to industrialists which meet investment criteria.
As advanced manufacturing is a national priority for Singapore, the above strategy allows the city state to reserve strategic land (e.g. proximity to ports, industry hubs) for foreign and local high tech manufacturers.
This prevents the phenomenon often seen in other Asian cities, where too much of prime land is taken up by offices and hospitality developments.
🇲🇾 Malaysia – the attractive property investment destination requires foreigners buying properties valued at less than MYR 1M to seek approval from the Economic Planning Unit of the Prime Minister’s department.
On the contrary, foreigners buying properties valued above MYR 1M should seek state authorities rather than national-level approval.
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What I enjoyed in this report is that for each country report, you get a quick download of the country’s recent history which shaped its current real estate regime, an update on its economic outlook as well as upcoming real estate opportunities and pitfalls.
Regions like Southeast Asia and China have enormous growth potential, but are also each a huge group of multiple and varied jurisdictions.
What other suggestions do you have to help EU/UK companies to understand local considerations and negotiate an advantageous real estate deal to support their growth plans in Singapore and Southeast Asia?
My LinkedIn post here.
About Zhilin SIM
Having worked and lived in Singapore, the Nordics, China, Spain, UK, I’m now based in Paris.
I’m fluent in English, French and Mandarin, and I’m learning Arabic because it’s a beautiful and fascinating language.
My team creates and supports one-many initiatives connecting Corporate and Startup ecosystems in Europe to business and innovation opportunities in Singapore and Southeast Asia.
I’m passionate about horticulture, watercolour, startups/tech as well as French cuisine, Peranakan kueh techniques and other global cuisines.
Feel free to connect with me if you think my network in Europe and Asia could be of benefit to your business and innovation activities.
