6 Best Cities For Property Investment


6 Best Cities For Property Investment

So you’re ready to buy an investment property overseas, but which markets promise to deliver the best returns in the long-term?

Published on 12 October 2016

Booming urbanisation and an increase in foreign demand are making these cities attractive destinations for real estate investment. We take a closer look at the property hotspots.

6 Best Cities For Property Investment

Shanghai, China

Continued urbanisation is expected to fuel the demand for investment properties in this important financial hub. According to residential and commercial property consultancy, Knight Frank, Shanghai’s diverse and thriving service sector and its strong international community are also responsible for the positive price growth that the city has been experiencing for the past several months. Home prices in Shanghai shot up 34 per cent in the last year, and, while there has been speculation that the housing bubble is about to burst, experts believe that the country’s housing market will continue to be strong.

In an article published in September in Property Report, Ivan Ko, chairman of China Real Estate Chamber of Commerce Hong Kong and International Chapter, said that, like Beijing and Shenzhen, Shanghai is an international metropolis and will remain attractive to global talent and investors, in turn fuelling the housing market.

6 Best Cities For Property Investment

Ho Chi Minh City, Vietnam

Vietnam is fast catching up to its more developed Asian neighbours. When the global financial crisis hit in 2008, many property developments were affected, but the market recovered in late 2014, thanks to a growing middle class, rising wages and booming urbanisation, and the near future looks rosy for anyone looking to invest in property there.

Demand, especially in Ho Chi Minh City is strong, and, according to Knight Frank, “structural reforms initiated by the current government place Vietnam ahead of other emerging markets. Importantly for investors, new rules were brought in during 2015 that opened up property markets to foreign buyers.”

Investors cannot get enough neighbourhoods like District 2 and District 9 – the former is a favourite with expats and boasts a number of gourmet supermarkets, upscale restaurants and international schools.

Commercial real estate services firm CBRE Vietnam says that sales in the condo segment in Ho Chi Minh City reported an increase of 38 per cent in the first quarter of this year.

6 Best Cities For Property Investment

Los Angeles, United States

The property market in this city is three years into recovery from the global financial crisis. Demand is high, especially from Asian, mostly Chinese, investors. In fact, according to an article in Forbes, China’s Greenland Properties is constructing the luxury Metropolis residences in the City of Angels, and 22 per cent of Chinese buyers rank the city as their first choice for investing in property. In addition to new property developments, investors are drawn by improvements to urban centres and the increase in lifestyle offerings.

An article published on Mortgage Professional America this year mentioned a Knight Frank wealth report, stating Los Angeles as one of three of the most important global cities in terms of investment in residential real estate.

6 Best Cities For Property Investment wealth Bangkok, Thailand

Bangkok, Thailand

Looking to invest in a luxury residential property? Look no further than prime developments along Sukhumvit Road and the Chao Phraya River. Lately, the city’s hottest-selling luxury developments have included the Four Seasons Private Residences Bangkok, and Marque Sukhumvit, next to the EmQuartier Shopping Centre.

Early this year, a report from real estate company DTZ found that new condominium units in both the CBD and non-CBD areas enjoyed capital appreciation of over 17 per cent year-on-year during the second half of 2015.

There are many great reasons to invest in Bangkok, according to Andrew Batt, in his article published on PropertyGuru in 2015. Among them, high numbers of expatriate tenants, an overall preference for renting, and a likely increase in rental rates.

6 Best Cities For Property Investment wealth Auckland, New Zealand

Auckland, New Zealand

More and more Kiwis are gravitating towards Auckland, mainly because it’s where the jobs are. But the city has so much more to offer, including a beautiful harbour, a generally pleasant climate, ethnic diversity, and a thriving dining, arts and culture scene.

With immigration at an all-time high, housing is very much in demand – average rent prices are over NZ$500 a week. The Guardian reported that foreign investment in Auckland has boomed under the current National party government, with almost 50 per cent of investors hailing from abroad.

Keen on a luxury property? The market is hot, according to research by global network Christie’s International Real Estate, which says that international demand has driven a 63 per cent growth in sales of NZ$1 million-plus properties in Auckland.

6 Best Cities For Property Investment wealth Melbourne, Australia

Melbourne, Australia

While the city’s property markets as a whole have started showing signs of slowing down, with renters benefitting more than investors, there is good news coming out of regional centres. Many of Melbourne’s western suburbs, for instance, are great for long-term investors. The infrastructure in these areas is developing rapidly; this will continue as more and more Melbournians seek out affordable living outside of the inner city.

According to The New Daily, Smarter Property Investing principal Christine Williams was quoted as saying that the south-western Melbourne suburb of Werribee is a good choice if you are looking for an entry-level property. Here, a three-bedroom, two-bathroom house can be purchased for as little as A$320,000. “If you’re going to buy and hold anywhere from 10 to 15 years, you’ll certainly reap the rewards – that’s my belief,” Williams stated.

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