Industry players reveal that the first phase of the deal should help restabilise the region’s economy
Developers have acknowledged that the stable relationship between the US and China after a two-year conflict will buoy the property market in Southeast Asia this 2020, reported South China Morning Post.
Over the past year and a half, growing concerns over the trade war negotiation have caused unrest in emerging markets, discouraging foreign investors and prompting several Asian currencies to decline.
Fortunately, in December, Beijing and Washington disclosed that they are close to finalising the first phase of the agreement, and planned to sign it within this week. Industry players claim that this move will help restabilise the region’s economy and real estate market.
“We all know in terms of the macro economy, the trade war with the US caused concern and, with that, emerging-market currencies were a little bit vulnerable last year,” said James Kibble, co-founder of Indonesian boutique asset manager and property developer Selo Group.
“With that looking to resolve itself at the end of last year, I think that puts Southeast Asia in a really good spot because all of the currencies have started to stabilise.”
By the end of 2020, the 60 high-end villas at Selong Selo Residences and Resort by Selo Group, is expected to be completed.
“We are very positive that in Southeast Asia, there is a really strong capital appreciation,” James added.
Moreover, other factors that would bolster the real estate sector throughout the region, include growth of the population and gross domestic product, strong political stability, as well as influx of Chinese capital.
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