Improved real estate transparency in APAC’s emerging markets lead to global gains

JLL named Thailand, Vietnam, Philippines and Indonesia as the top 10 global improvers 

A view of The Grand Palace from the river, with a royal barge boat. anek.soowannaphoom/Shutterstock

According to The Global Real Estate Transparency Index 2020 published by JLL, the emerging markets in Asia Pacific have made the most substantial gains since they started to embrace advanced technologies, as well as focus on their corporate social responsibility.

Among the top 10 global improvers were Thailand which rose to the 33rd spot, Indonesia to the 40th, the Philippines to the 44th and Vietnam to the 56th, whereas Singapore continues to be one of the most transparent markets, standing strong at the 14th place.

The 2020 Index comes at a time of economic and societal turmoil when global investors are scouring for accurate and timely data, transparent processes and high ethical standards. Real estate transparency is more crucial now than ever since these investors are looking to deploy around USD40 billion in dry power capital to the region.

More: Investors gear up to re-enter Asia Pacific’s commercial real estate market

In the report, JLL revealed that businesses, consumers and investors have felt the pressure to enhance real estate transparency to beat other asset classes and comply with the heightened expectations regarding the industry’s role to offer a resilient and sustainable built environment amidst the pandemic.

Moreover, state-of-the-art property technology has altered the way the industry gathers and analyses data, which have affected the level of transparency in terms of regulations.

“While investment into commercial real estate has inevitably paused during the pandemic, the overarching trend toward rising allocations to this asset class will continue. As investors look to allocate more capital into real estate in this region, transparency becomes even more important, as will the enforcement of robust regulatory frameworks,” said Regina Lim, head of capital markets research, Asia Pacific, JLL.