Prime Asia office development land prices rise 38.3 per cent | 4 April 2014
Land price growth is soaring across Asia, as office development land values rose 38.3 per cent over the last two years.
According to propertywire.com, a new report from Knight Frank shows 13 office markets in Asia saw their land prices over the same period. The best performing cities include Phnom Penh, Bangkok, Kuala Lumpur and Jakarta. On the other hand, Tokyo, Hong Kong and Singapore were the cities which saw the smallest amount of growth.
Nicholas Holt, Knight Frank head of research for Asia Pacific, says developers, financers and investors will find this new report, named the Prime Asia Development Land Index, very useful.
“A key observation from our findings points to the fact that in developing Asia we are seeing low liquidity and rapid land price appreciation, whilst in developed Asia such as Hong Kong, Singapore and Tokyo, we see the highest land prices and redevelopment opportunities,” he explains.
He adds that the lack of available development land is pushing the emphasis onto redevelopment instead. Moreover, such high land prices are putting pressure on developments to be completed quickly, reports property-report.com.
Knight Frank estimates current land prices by taking into account any costs a developer would have to pay, the price they would be willing to pay for land and how much profit they need to make.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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