July 11, 2020 at 06:50 pm
The Philippines recently joined Southeast Asian countries Thailand, Vietnam, and Indonesia in the list of global top 10 improvers in JLL’s biennial Global Real Estate Transparency Index (GRETI).
Asia Pacific’s emerging markets have made the most significant gains in improving real estate transparency, led by a greater emphasis on corporate social responsibility and wider adoption of new technologies.
The 2020 Index was launched at a time of massive economic disruption where the need for transparent processes, accurate and timely data, and high ethical standards are in closer focus.
The backdrop of COVID-19 has ensured that transparency within Asia Pacific’s real estate legal and regulatory systems, is more important than ever to global investors, as they look to deploy approximately $40 billion in capital into the region.
According to JLL, pressure exists from investors, businesses, and consumers to further improve real estate transparency.
“While investment into commercial real estate has inevitably paused during the pandemic, the overarching trend toward rising allocations to this asset class will continue,” said Regina Lim, head of capital markets research, Asia Pacific, JLL.
The Philippines remains in “semi-transparent” tier
Ranked at 45th spot in the 2018 edition of GRETI, the Philippines climbed one spot to 44 out of the 99 countries and 163 city regions included in the study, making it one of the top 10 global improvers (vs 2018).
“Sustainability, including a rise in the number of green-certified buildings, contributed to the Philippines’ improvement,” said P. Ryan Isip, JLL Philippines’ head of capital markets.
“The Philippines has also undertaken an initiative to digitize the land registry, leading to better quality records and easier access,” Isip said.
Rise of proptech platforms
Another key driver of transparency is the volume of real estate market data now available due to the growing adoption of proptech platforms, digital tools, and “big data” techniques.
Although real estate markets have historically faced challenges when implementing new technology, the COVID-19 pandemic is leading to an acceleration in new types of non-standard and high-frequency data – especially relating to health, mobility and space usage – being collected and disseminated in near-real-time.
“As the adoption of proptech and sustainability commitments continue to garner steam, greater transparency gains will be driven by both an evolving regulatory landscape and the collective actions by national real estate industries,” said Chris Fossick, CEO, JLL Southeast Asia.
“With the outbreak of COVID-19, it will become even more crucial for the real estate industry to work collaboratively with local governments to achieve greater transparency and meet the changing expectations of investors as their appetites shift in accordance to the investment outlook over the next 12 to 18 months,” he averred.