Asia's Growing Retirement and Second Home Market

For the last 30 years South East Asian countriespermitted to own a 99-year lease for land with
have competed to attract tourists. Today the focushouses. This is the only place in Singapore where
is on quality not just quantity. Part of this strategy isforeign land ownership is permitted although there is
to attract retirement and second home (RSH)no restriction on foreign ownership of condominium
purchasers, according to a recent report from CBdevelopments. Vietnam allows foreigners 50-year
Richard Ellis Thailand.leases.
RSH purchasers have become major components inThe RSH market is destined to grow driven not only
the tourism and property markets in Spain, Floridaby expatriates working in Asia, but also by Asian
and Australia's gold coast. The RSH market is growingbuyers. Thailand has enjoyed huge growth in medical
in South East Asia. Competition between countries istourism driven by Middle East and South Asian
intensifying but significant obstacles still remain indemand for good quality, reasonably priced medical
particular foreign ownership of property, availability ofcare. These medical tourists could also become RSH
property loans for foreigner, and visas.purchasers particularly as countries like India look at
The benefits of the RSH market are that once arelaxing controls on investment overseas.
property is purchased, repeat visits by the buyer are"Thailand faces growing competition to attract RSH
guaranteed avoiding the growing competition topurchasers from other countries that can offer an
attract tourists. The length of stay is longer andattractive combination of quality and cost of living.
more money is spent on local goods and services.This competition means that, in order to succeed,
Thailand has been at the forefront of retirement andcountries will have to offer attractive property
second home development centred in Phuket and theownership, property financing and visa regulations,"
Andaman coast, Pattaya, Hua Hin, Cha Am, and Kohaccording to Mr. James Pitchon, Executive Director at
Samui. Thailand offers an attractive combination ofCB Richard Ellis Thailand.
quality of living compared to cost but still hasThailand has introduced a retirement visa and about
restrictive property ownership rules. Thailand is facing12,000 foreigners had successfully applied in the first
growing competition from Singapore, Malaysia,seven months of 2006.
Indonesia and Vietnam to attract RSH purchasers.The RSH market will to continue to grow. The
Malaysia has been the most aggressive country instrongest growth will be from Asian buyers. In 2007,
providing an attractive property ownership, propertythe Korean government relaxed conditions for
financing and visa structure. The "Malaysia My SecondKorean nationals investing in property overseas and
Home Programme" allows foreign ownership of landCB Richard Ellis has already seen an increase in
with houses, the ability for foreigners to borrowKorean demand for Thai property. India has also
money to fund a property purchase and a ten yearrelaxed its conditions for its nationals investing
visa. In 2006, 8,700 people had successfully appliedoverseas.
for the "Malaysia My Second Home Programme".As the market becomes more competitive countries
Singapore as well as developing two integratedwill need to examine property ownership and
resorts with casinos to attract visitors also hasfinancing restrictions as well as visa policies to fully
Sentosa Cove, a resort development aimedbenefit from the booming RSH market.
specifically at foreigners. Overseas buyers are