Japanese Companies Expand Asian Property Businesses into Southeast Asian Countries

mamoru masumiya

■Summary

While many global companies focus on Asian businesses, even Japanese companies in domestic property industries are entering Asia. As target business areas have recently been expanding into Southeast Asia from mainland China, the Asian property business is growing and diversifying.
Many Southeast Asian cities are facing strong residential demand and have long-term growth prospects with decades of demographic dividends. Compared to mainland Chinese cities where Hong Kong and Singapore companies have dominant positions, Southeast Asian cities have room for Japanese companies to win promising opportunities with the backdrop of a Japan-friendly environment.
While residential development is still a major property business in Asia, some companies have entered other categories such as office investment and construction of new towns with shopping malls. Since each city is unique and has various property needs, a strategy for deciding which sectors and areas to invest in or develop is very important, and so is business form with partners. As foreigners face entry hurdles such as regulations in the Asian property market, pursuing business opportunities away from them will accelerate Asian business expansion.