KUALA LUMPUR: Developed and emerging countries are practising an open door policy to compete for foreign funds to invest in their property developments amid an uncertain global economic and political environment.
As a result, there will be a shift in the flow of funds towards those countries that offer the best returns, says Gavin Tee, founder of Swhengtee International Real Estate Investors Club.
Speaking at the "Changing Face of the Real Estate World" seminar recently, Tee said funds has slowly moved towards the southern part of the globe since 2009.
"In the coming years, we will see sweeping changes in the real estate world. Currently, emerging markets such as Myanmar, Bangladesh, Indonesia and Vietnam are high on the radar of many global funds but now even developed nations such as Germany, China, Australia and Singapore are on the market for such funds," he said.
Tee said within Asia, Southeast Asia, especially Jakarta, Kuala Lumpur and Singapore, will start to boom with more investments from Japan and Hong Kong.
On his outlook for the real estate sector this year, Tee said the global market would see more tightening of financing and possible tax increases.
"This will benefit the bigger players who have more leverage in a challenging environment. One of the consequences would be more emphasis by investors on how to handle taxes payable," Tee said.
Tee also said the secondary market in most parts of the world may face a challenging time this year due to the stricter financing measures put in place in most countries.
"Singapore recently made it harder while more cooling measures are expected in China. In some jurisdictions, loan margins for second house onwards have dropped to below 50 per cent. In Malaysia, it is a lot harder now to get loans.
"Despite that, I am bullish about prospects for investors. This decade will be the 'Golden 10 Years' for Malaysian property investors and there will be unprecedented growth in the sector, domestically," he said.
Tee also listed his picks of property hotspots in Malaysia, the Klang Valley and internationally for 2013.
Locally, Tee's Top 10 picks are Iskandar Malaysia, Kuala Lumpur City Centre, Kota Kinabalu, Penang (Bayan Lepas and mainland), Cyberjaya, Kuching, Tebrau, Johor Baru, Pangkor Island, KLIA region and Malacca.
His top Klang Valley hotspots are Kuala Lumpur City South (Jalan Cochrane area, Imbi, Tun Razak Exchange), Jalan Cochrane, Jalan Duta/Mont Kiara, Mid Valley/Bangsar South Belt, Taman Desa/Seputeh, Cyberjaya, Petaling Jaya town centre (Section 14), Shah Alam-Subang belt, the Kuala Lumpur International Airport region and the Kuala Lumpur City Centre.
On the international front, Tee's picks are London, Dubai, Moscow, New York, Madrid, Miami, Jakarta, Wuxi, Iskandar (Johor) and Gold Coast in Australia.