Australia takes top spot; Taiwan is biggest improver
SINGAPORE, June 30, 2016 - (ACN Newswire) - Asia Pacific made the
greatest progress globally in terms of real estate transparency
over the past two years, according to JLL's Global Real Estate
Transparency Index (GRETI) 2016. The index measures transparency by
looking at factors including data availability, governance,
transaction processes, and the regulatory and legal
environment.
Asia Pacific is a diverse region in terms of real estate
transparency. Australia continues to hold the top spot as the
region's most transparent real estate market, and together with New
Zealand, is classified as 'Highly Transparent'.
Overall, improvements in most countries across the region have been
small. The biggest improver in the latest survey is Taiwan, which
has moved into the 'Transparent' category for the first time. More
moderate improvements were achieved by Japan, South Korea, India
and China, with China's Alpha cities now on the cusp of the
Transparent category. At the other end of the spectrum, Myanmar
retains the title as the least transparent market in Asia Pacific,
although it was amongst the ten biggest improvers globally.
The major factor driving improvements in Asia Pacific has been the
increased availability and quality of market data. In some
countries improvements have also been seen in regard to performance
benchmarking, the enactment of new legislation, the introduction of
higher ethical standards, and the wider adoption of 'green
building' regulations and tools.
"These results are encouraging as they highlight the steady advance
of the region's real estate industry," says Jeremy Kelly, director,
Global Research Programmes at JLL and main author of the report
"Taking Real Estate Transparency to the Next Level."
The launch of GRETI 2016 comes at a time when international
institutions, national governments and businesses are demanding
greater integrity and clarity in investments and transactions. It
reflects a growing recognition of the crucial role that a
transparent real estate sector plays, not only as a facilitator of
new investment and business activity but also, significantly, in
community well-being and inclusiveness, according to the
report.
Additionally, capital allocations to real estate are growing. JLL
forecasts that within the next decade in excess of US$1 trillion
will be targeting the sector globally, compared to US$700 billion
now. This growth means investors are demanding further improvements
in real estate transparency, expecting standards in real estate to
be at least on a par with other asset classes.
"While the region as a whole has shown improvement, most countries
in Asia Pacific are still not transparent. There are ongoing
examples of poor corporate governance, opaque and corrupt practices
and failures in regulatory enforcement that are resulting in
serious consequences for society, for business activity and for
investment," says Dr Jane Murray, Head of Research, Asia
Pacific.
"Looking ahead, the continued development of the region's economies
and real estate industry will fuel the need for future enhancements
in transparency as investor interest rises and the demand for
quality buildings and management grows. Regulatory reforms will be
essential for further progress in transparency and although public
sector initiatives are essential, private sector involvement will
also be crucial."
"Southeast Asia has the widest variation between the highest and
lowest scoring country and this is largely expected given the wide
divergence in economic and urban growth in the region from
transparent Singapore to opaque Myanmar," says Dr Chua Yang Liang,
head of research for Southeast Asia. "For investors this also means
that SEA offers a wide range of investment opportunity."
JLL's Transparency Index is updated biennially and has been
charting the evolution of real estate transparency across the globe
for 17 years. The latest survey covers 109 markets worldwide.
Key findings:
Australia and New Zealand
Australia ranked second globally behind the United Kingdom in the
'Highly Transparent' group of countries. The group consists of 10
countries, including Canada, United States and France, and accounts
for 75 percent of global real estate investment. New Zealand takes
the sixth spot.
Singapore and Hong Kong
Singapore (11th) takes the top spot in Asia in the 'Transparent'
group. However, the city state and Hong Kong (15th) have not shown
any significant improvement and once again have fallen just short
of the 'Highly Transparent' category. Alignment of shareholders'
interests of listed vehicles in Hong Kong still requires
improvement, while the depth of real estate data in Singapore
trails many major global markets.
Taiwan
The region's biggest improver, Taiwan (23rd), has seen marked
progress on the back of the availability of data on market
fundamentals and the transaction process. Policy changes, both new
and old, are flowing through to gains in information availability
and accuracy. In 2016, a consolidated housing and land tax was
introduced which brought Taiwan in line with international
standards and helped correct a flaw in the taxation system which
saw declared land values often undervalued.
Japan and South Korea
In North Asia, advances in market intelligence have contributed to
moderate improvements in transparency for Japan (19th) and South
Korea (40th). Robust investor interest, both domestic and foreign,
has led to increased demand for real estate information and
encouraged more extensive tracking of property sectors by service
providers including JLL.
China
Progress in China has been steady, with greatest advances being in
Tier 1 Alpha cities (33rd). Shanghai, which is on the cusp of
moving into the 'Transparent' category, is a city that is
fast-tracking to maturity and witnessing a structural uplift in
real estate investment, development and corporate activity. It has
seen a threefold increase in real estate investment since 2010.
India
India's key cities (36th) are benefiting from proactive measures to
increase transparency in the real estate sector. Land records have
started to be digitised and made available via an online database,
while the Land Acquisition, Rehabilitation and Resettlement Act
(passed in 2014) has simplified procedures for acquiring land and
determining fair compensation for sellers.
Image: http://bit.ly/29b5plQ
JLL's Global Real Estate Transparency Index (GRETI) 2016
http://bit.ly/291yFpN
About Jones Lang LaSalle, Inc.
JLL (NYSE:JLL) is a professional services and investment management
firm offering specialized real estate services to clients seeking
increased value by owning, occupying and investing in real estate.
A Fortune 500 company with annual fee revenue of $5.2 billion and
gross revenue of $6.0 billion, JLL has more than 280 corporate
offices, operates in more than 80 countries and has a global
workforce of more than 60,000. On behalf of its clients, the firm
provides management and real estate outsourcing services for a
property portfolio of 4.0 billion square feet, or 372 million
square meters, and completed $138 billion in sales, acquisitions
and finance transactions in 2015. Its investment management
business, LaSalle Investment Management, has $58.3 billion of real
estate assets under management. JLL is the brand name, and a
registered trademark, of Jones Lang LaSalle Incorporated. For
further information, visit www.jll.com.
JLL has over 50 years of experience in Asia Pacific, with over
33,000 employees operating in 92 offices in 16 countries across the
region. The firm won 15 awards at the International Property Awards
Asia Pacific in 2016 and was named number one real estate advisor
in Asia at the 2015 Euromoney Real Estate Awards.
www.ap.jll.com.
Source: Jones Lang LaSalle, Inc.
Contact:
Eva Sogbanmu
Phone: +65 6494 3572
Email: Eva.Sogbanmu@ap.jll.com
Copyright 2016 ACN Newswire . All rights reserved.
Jones Lang LaSalle (NYSE:JLL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Jones Lang LaSalle (NYSE:JLL)
Historical Stock Chart
From Apr 2023 to Apr 2024