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Brad585966

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According to a recent Jones Lang LaSalle report entitled “International

student destinations redefining the world of real estate investment”, the

nine top destinations in the world for international students are also tops in

terms of being real estate investment destinations for both residential and

commercial properties.

 

1. London: Londonʼs international student population is diverse, with a

growing proportion coming in from Asia. China and India alone represent

22 per cent of the international student population in the UK. The

abundance of good educational institutions coupled with the diversity and

style that London exudes make the city a prime target for real estate

investment..London is viewed by many global players as a safe haven of

wealth. International buyers including American, Middle Eastern, German

and Asian investors represented well over 50 per cent of the total

investment volumes in Central London in 2009 and 2010. In 2011, these

volumes showed no signs of slowing down, with an increasing number

coming from Asia. We expect house prices to grow by about 4 per cent in

2012 followed by 8 per cent per annum by 2014. On an annual basis,

rental growth is expected to slow down, from about 12 per cent in 2011 to

7 per cent in 2012 and towards 5 per cent by 2014. The low levels of

supply in London, however, ensure that prices and rents in the city remain

stable.

 

2. New York: In 2010, 46 per cent of the international student population

in the US came from China, India, and South Korea. Growth was primarily

driven by a 30 per cent increase in Chinese student enrollment between

Sudoku. The city is home to some of the best  universities in the world such as

Colombia and Cornell University. As a result, overseas buyers are growing

in presence.

 

3. Tokyo: Japan hosts a large population of international students from

Asia, with China making up 61 per cent of the total number, followed by

South Korea and Taiwan. The cityʼs rich culture and proximity to other

Asian cities presents a win-win scenario for many students. University of

Tokyo and the Tokyo Institute of Technology rank 25th and 57th

respectively in world rankings.

Things are looking up for Japan in 2012 as the gross domestic product

(GDP) is expected to improve significantly due to reconstruction related

demand from last yearʼs tsunami and earthquake disaster.

 

4. Singapore: The Singapore commercial and housing property markets

expect to see short-term rent and price corrections of 10-20 per cent

between 2012 and 2015, presenting investors with a good opportunity to

buy in at the bottom end of the cycle. Lower population growth and high

future supply are expected to induce a further decline in home prices, with

over 11,000 private residential units scheduled for completion over the

next five years. In turn, the supply pressure on the market is likely to be

highest in 2014 and 2015. Moreover, net lettable area in office and

business parks is expected to grow by 4 per cent in 2012. In spite of this,

the local property market is often described as ʻresilientʼ, as it has strong

underlying market fundamentals.

 

5. Shanghai: Chinaʼs steady economic rise paralleled with an increase in

demand for Mandarin language skills has rendered the country an

attractive destination for students from Asia and beyond. China has seen

a 10 per cent increase in the number of international students between

2009 and 2010, with the majority coming from South Korea, Japan, and

Vietnam. Notable

universities in Shanghai include Fudan and Jiao Tong University. In recent

years, the rapid economic growth in Chinaʼs city centres, particularly

Shanghai, has fuelled a substantial hike in housing prices.

A number of government measures, including property taxes, have since

been applied to cool the market and these are expected to continue into

2012. We are seeing some improvement in the availability of mortgage

financing, as well as lower interest rates for first time home buyers.

Sale prices and rents for high-end apartments remained relatively stable

in Q4 2011, on the back of steady supply and limited demand. With this

view in mind, annual sales for the high-end segment are likely to recover

moderately in the second half of 2012. Pudong and Puxi markets in

Shanghai will remain tight due to limited new supply.

 

6. Los Angeles: Los Angeles is the third-largest city economy by GDP in

the world, behind only Tokyo and New York. The cityʼs glamourous

entertainment industry and diversified economic landscape are big

incentives for Asian students. California hosts the largest number of

international students in the US, with Los Angeles having the largest

concentration. The University of California and the University of Southern

California rank among the top universities in the world.

The marketʼs downturn has helped its apartment rental market, as more

households choose to rent. Assuming steady job growth in 2012, the

residential market is poised to gain ground. Apartment vacancy is likely to

further drop, supporting rent increases.

7. Toronto: Toronto has one of the largest Chinatowns in North America.

Nearly 30 per cent of Canadaʼs international student population comes

from China, followed by India and South Korea. Canadaʼs universities are

highly ranked with McGill ranking 17th, The University of Toronto at 25th

spot and the University of British Colombia at 51st.

Torontoʼs office market continues to drive central Canadaʼs performance

as sustained demand from tenants solidifies over the short term.

 

8. Sydney: Sydney has long had a high profile on the global stage, largely due to the perfectly balanced lifestyle it claims to offer, ranging from its

beaches and water sports, food and wine to its strong cultural heritage. It

has gained popularity among Asian high net worth families in recent

years. Popular universities include The University of Sydney and the

University of New South Wales, which are both ranked in the top 50

universities globally.

Residential property in Sydney is considered to be a stable and

high-quality investment choice, although the cityʼs undersupply of

accommodation and high migration are likely to keep prices the highest of

any Australian city.

 

9. Melbourne: For the first time in almost a decade, Melbourne has

replaced Vancouver as the most livable city among 140 cities around the

world. In 2010, 48 per cent of international students in Australia came

from China, India, and Malaysia. Migration will continue to play a big role,

putting pressure on the supply of residential dwellings and investment

property prices.

 

 


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