I spent a decent chunk of this summer in Asia. I left convinced that, if ?anything, we have underestimated ?the impact that this continent will ?have on the global property market ?in the decades ahead.
Asia is home to the world’s ten biggest shopping centres. In Malaysia, where two of them sit, 100 centres have opened over the past decade and the ?expectation is a similar number will open over the next.
In Singapore, the biggest-selling newspaper, The Straits Times, carries property news from front to back. REIT-related stories lead in the business ?section. And property dominates the adverts: from new condos in the city-state itself to investment ?opportunities in Bangkok, Sydney and London.
Meanwhile the skylines in smaller, fast-growing countries like Cambodia are unrecognizable to those last in the region even a decade ago. No wonder, as Peter Bill writes this week (page 62), the scion of at least one of the UK’s best-known property titans is seeking his fortune in emerging corners of the continent.
The UK – and the West at large – have already benefitted from investment moving from East to West. Nowhere is this better highlighted than on London’s Bond Street. In recent years far eastern investors have acquired around 10% of shops on the uber-prime stretch, a share that’s expected to grow (page 45).
Meanwhile, EPRA used its conference in Paris this week to ?announce that the listed body would be opening a Hong Kong office to tap into this huge reservoir of Asian capital.
But there’s a flip side. Take Tony Abbott, the man widely tipped to be the next Australian prime minister. He said this week that his priority as PM would be to forge closer links with Indonesia ahead ?of the UK or US.
As ever, money and power are intertwined. And the full ?consequences of the shift are yet to play out.
¦ Bill Grimsey preached to the converted at the launch of his bold manifesto for the future of the high street on Wednesday. Everyone from the Women’s Institute to the British Independent Retailers Association squeezed into the House of Commons’ Churchill dining room. And while it’s fair to say not everyone present believed all 31 recommendations were immediately deliverable, there was ?overwhelming support for the thrust of the ?findings.
To me the problems – or opportunities, as ?Grimsey would style it – are threefold.
The political hurdle is considerable. The presence of local government minister Brandon Lewis was welcome, but will the Cabinet have the appetite to reinstate a business rates review ahead of a general election?
The local challenge is enormous too. The ?capacity and capability of local authorities to ?deliver on his ambitions are questionable.
And then there’s the money. Persuading retailers – and others – to hand over 0.25% of their sales will be perhaps the tallest order.
That’s not to be cynical, though. The language of the review is more precise than in the Portas report. But delivery is all. Focusing ?on a handful of the most meaningful measures would be the best ?way forward.
¦ Cushman & Wakefield’s London team are readying themselves for a daunting challenge. Next Friday sees Digby Flower lead more than 60 colleagues up seven London towers in seven hours. The ascent of Centre Point, the Gherkin, the Heron Tower and others equates to the vertical height of Snowdon. Through its Schools Around the World charity, the team hopes to contribute towards the overall £250,000 target for the construction of a new study centre facility at Gladesmore Community School in South Tottenham, London. ?To contribute, go to www.justgiving.com/7Towers-in-7Hours
As well as lending EG’s support to the event, I’ve agreed to take part. My thighs are burning in anticipation.
damian.wild@estatesgazette.com
