|New report from JLL reveals real estate implications for ASEAN of technological transformation|
SINGAPORE, May 31, 2016 - (ACN Newswire) - Southeast Asian countries have the potential to leapfrog ahead of other developing nations by embracing new technologies to transform how people work, live and play, according to a new report by real estate consultancy JLL.
Ahead of the World Economic Forum on ASEAN, taking place in Kuala Lumpur, Malaysia on 1 and 2 June, JLL has released a report looking at how advanced digital technologies could impact countries in the newly established ASEAN Economic Community (AEC), a trading bloc of 10 Southeast Asian nations.
Chris Fossick, Managing Director, Singapore & South East Asia, JLL, says: "In many ways, new technologies will allow people to bypass current constraints and leapfrog into greater efficiency. The impact on real estate and infrastructure in Southeast Asia is likely to be positive and transformational. If harnessed effectively, the changes will bring improved productivity, income levels and quality of life to the population."
Southeast Asian economies are forecast to grow at 5 percent annually until 2020, exceeding global growth of 3.5 percent. The urban population in Southeast Asia's cities is growing by around 2.2 percent annually and the middle income population is set to increase by 70 million to 194 million by 2020.
New ways to work
In the sphere of work, demand for office space will change due to greater outsourcing from developed markets, more flexible work practices, and an increase in co-sharing spaces.
Regina Lim, National Director, Advisory & Research, Capital Markets, JLL and author of the report, says: "While growth in demand for office space slowed after the global financial crisis, Southeast Asia has bucked the trend, with demand expected to grow at 6 percent per year until 2020 due to economic growth, further acceleration of outsourcing from developed markets, and the rise of the middle class. In particular, we anticipate strong growth in demand for office space in Manila and Kuala Lumpur."
The report reveals that traditional corporate occupiers may be giving way to new models of working.
"While automation and artificial intelligence will eliminate some jobs, new jobs are likely to be created. Adoption of flexible working will continue to rise and by 2030, co-working spaces could make up 10 to 15 percent of office stock in Southeast Asia, compared to only 1 to 5 percent today," explains Ms Lim.
Growth of shopping via mobile.
Despite relatively low rates of PC ownership and internet connectivity, online shopping penetration is higher in Southeast Asia than in developed markets such as the US and UK. In fact, 50 to 80 percent of consumers in Southeast Asia living outside cities are bypassing PCs to use mobile phones to shop online. But rather than negating the need for bricks-and-mortar shops, JLL's research suggests it will drive online retailers to expand into physical stores as more consumers choose to 'click and collect' purchases and test products in store.
Changes in lodging habits
In terms of accommodation, home-sharing platforms such as Airbnb and Homeaway will impact both residential and hotel real estate in Southeast Asia. These platforms raise the efficiency with which property is used, freeing up spare capacity such as second homes. Thus there could be a reduction in the number of hotel rooms and residential apartments needed to accommodate the same number of visitors.
About the Fourth Industrial Revolution
The Fourth Industrial Revolution is characterised by the fusion and amplification of emerging technology breakthroughs in artificial intelligence, automation and robotics, multiplied by the extreme connectivity between billions of people with mobile devices with unprecedented access to data and knowledge.
Download JLL's report "The Fourth Industrial Revolution: Impact on Real Estate in Southeast Asia" here. http://access.jll.com/sea-4th-industrial-revolution-insights-2016/
Notes to Editors:
Regina Lim, author of the report, is available for interview. Contact Bee Lin Ang at [email protected] (+65 6494 3582) or Eva Sogbanmu (+65 6494 3572) to arrange.
The following JLL spokespeople are available for interview at the World Economic Forum on ASEAN:
- Chris Fossick, Managing Director, Singapore & Southeast Asia
- Sylvia Koh, Head of Corporate Consulting, Asia Pacific
- Susheel Koul, Managing Director, Corporate Solutions, Asia Pacific
- Todd Lauchlan, Head of Indonesia
- Suphin Mechuchep, Head of Thailand
- Jeremy Sheldon, Managing Director, Markets, Asia Pacific
About Jones Lang LaSalle, Inc.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $136 billion. At year-end 2016, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 77,000. As of December 31, 2016, LaSalle Investment Management has $60.1 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
JLL has over 50 years of experience in Asia Pacific, with 36,000 employees operating in 94 offices in 16 countries across the region. The firm won the 'World's Best' and 'Best in Asia Pacific' International Property Consultancy at the International Property Awards in 2016. www.ap.jll.com.
Bee Lin Ang
Phone: +65 6494 3582
Email: [email protected]
Phone: +65 6494 3572
Email: [email protected]
Source: Jones Lang LaSalle, Inc.
Topic: Research / Industry Report
Sectors: Design Process, Retail/eCommerce, Daily Finance, Engineering, Real Estate, IT Individual, Science & Research, Travel & Tourism, Daily News, Venture Capital
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