MIPIM ASIA: Some of the foremost figures in the Asian commercial real estate market have voiced concerns over the impact that political and social factors will have on the market in the region and globally.
In September and October, Hong Kong saw mass pro-democracy protests, and the impact that social change and impetus can have on markets should be at the forefront of investors’ minds, delegates at MIPIM Asia were warned.
“The last time we saw a wealth gap like we are seeing now there was a revolution in Russia. I think there will be ‘small revolutions’. I think we are going to see we are going to see a transfer of wealth and we need to be aware of that,” said Kenneth Gaw, president and managing director of Gaw Capital.
In order to redistribute wealth, it was anticipated that real estate companies would begin to have to operate under more difficult conditions.
“Governments are looking to redistribute wealth through higher taxes and that will be on real estate and the income it generates,” added Andrew Weir, global chair of real estate at KPMG.
Such social unrest in Europe, which is grappling with a refugee crisis, could see capital move from the region, away from London and into Asia, it was predicted.
“These problems in Europe will take decades to solve and Asia may look more attractive as a result. Tokyo could take the safe-haven status away from London,” said Nichols Loup, chief executive of Dymon Asia.
