MIPIM showcases keen interest in Asia property

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Reed Midem held its inaugural MIPIM Asia property exhibition in Hong Kong last week with a total of 2,000 participants. It was the first time the fair had been held in Asia since it was launched in Cannes, France in 1990.

China clearly presented the largest number of exhibitors as it has so many cities and square metres for development, according to Thierry Renault, deputy managing director of Reed Midem. Singapore, Hong Kong and Thailand made up the bulk of other Asian countries.

Of all the participants, 1,500 were exhibitors and 500 were investors, corporate end-users and hotel and resort representatives from 25 countries. Most investors attending the exhibition came from Europe and the US, while most developers were from Asia.

Renault explained that this was the first MIPIM to be held in the Asia Pacific as international investors in the US, Europe and Asia are now interested in Asia-Pacific properties. He added that about 70% of participants were from Asia-Pacific and 30% from further abroad.

Asia Pacific’s real estate investment value of US$43 billion is a 40% increase over the same period last year, according to Jones Lang LaSalle’s latest global real estate capital report – “Record Volumes, Record Globalisation”

Recorded global direct real estate investment of US$290 billion was seen in the first half of 2006, up 30% on the same period in 2005. Of this total, Asia Pacific accounted for approximately 15% at US$43 billion, which is a 40% increase over the same period in 2005.

The Paris-based exhibition organiser Reed Midem, has also conducted surveys into the Asia Pacific property market and has concluded firmly that property rental rates are strong in Shanghai, Manila, Jakarta and Bangkok and Hong Kong.

Several forums concentrating on various aspects of the region’s property sectors were discussed at the event. Two of the greatest demands were seen for the need of more commercial space, especially in Ho Chi Minh, Vietnam and South Korea. The Incheon Free Economic Zone and Jeju Free International City Development Center are slated to be built over the next five years in South Korea to meet this demand. The service sector is also experiencing a boom, as witnessed in Hong Kong, Shanghai, Beijing, Delhi, Mumbai, Tokyo and Sydney.

A Reed Midem study also indicated that 2005 and 2006 were the most dynamic years for investment in Thailand during the last decade, based on planned government mega projects and forecasts of total real estate investment from both the public and private sectors of US$44.75 billion over the next five years.

There were also projects from Middle-Eastern countries such as Bahrain and the United Arab Emirates, as well as from Russia and the United States. Macau was well showcased as well, with a particular interest on hotels and luxury commercial developments to compliment its growing gambling and games sector.

Conference attendee Chan Chee Meng, the CEO of KL Sentral a futuristic self-contained city, providing office towers, condominiums, hotels, restaurants, retail malls, entertainment and leisure centres on 72-acres in Kuala Lumpur said the event was well organized.

“I am impressed with the efficiency which the event was carried out,” he said. “The primary objective was to promote awareness and positioning of projects to participants,”

He also noted that it was a generally friendly atmosphere in which the event was organized, adding that next year he would appeal to the organisers to invite regional property players to visit the exhibition without paying the 950 Euro fee.

Henri Young Director of Marketing for Raimon Land, a Thailand-based developer said the event set new standards because it attracted the development and marketing representatives of entire cities such as Singapore, Hong Kong and developing regions such as Astrakhan in the Russian Federation.

“This is good for the industry because it’s a pure business to business event,” he said. “The only drawback was that it was a bit long at three days.” He was quick to add that the first MIPIM in Cannes France almost 16 years ago attracted the same numbers as the Hong Kong event – 2,000 Today, over 22,000 people attend the France event.

“It has plenty of opportunity to grow,” he concluded. “We’ll be back for sure.”