Property Life August September 2013

www.propertylife.asia

ASIA’S NO. 1 PROPERTY & LIFESTYLE GUIDE • DISPLAY TO SEPTEMBER 30TH 2013

FE AT URES

M ORE

STRATEGIC INVESTMENT

ROOM TO STUDY DECORATING STUDENT

ACCOMMODATION TO THE BEST ADVANTAGE OF BOTH INVESTOR AND TENANT

THE BALANCE BETWEEN CAPITAL GROWTH AND RENTAL YIELDS

ASSISTED LIVING

EDUCITY

THE EDUCATIONAL HUB OF ISKANDAR MALAYSIA DRAWS INTERNATIONAL FACILITIES AND STUDENTS

FUTURISTIC TECHNOLOGY HELPS THOSE WITH FUNCTIONAL LIMITATIONS LIVE INDEPENDENTLY

Student accommodation Booming global mega market ISSN 2251-3949

07

9 772251 394009

P LU S

Basket Apartments

19th district, Paris, France Consisting of 192 energy efficient student studio units, common spaces, dining area and living space.

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THE TEAM Managing Director/Publisher ALEXANDER KNIGHT alex@panashcomedia.com Managing Editor JENNIFER LS HARRISON editorial@panashcomedia.com Business Development Manager Europe TREVOR WATLING trevor@panashcomedia.com Business Development Manager Asia APRIL PORTEOUS april@panashcomedia.com

PUBLISHER’S NOTE Student halls of residence in early nineties’ Moscow was an experience in how student accommodation was imposed upon the unsuspecting youth of the last millennium. As a result of choosing to study Russian in Russia, immediately after the collapse of the Soviet Union, I arrived in Moscow on a grey, cold September day to find that I was being housed in a pink and purple monolithic building. It overlooked the main freight and passenger railway of this massive nation that runs from Moscow to St. Petersburg.

With its amazingly noisy Soviet era trains trundling past every 10 minutes, 24 hours a day, 365 days a year, and more creepy crawlies than a 19-year-old English kid had ever been exposed to inside a building, it was quite a novel experience. No wonder so many people wanted to flee the former communist state. I was fortunate — I, more or less immediately, went and rented an apartment, which at the time was insanely cheap. I got a one-bedroom pad near the Kremlin for USD $100 a month.

Travelling back to the UK after the first term, I went to visit some of my medical student pals at their Russell Square halls in London, which were, I am pleased to say, positively five star by comparison to the post-apocalyptic, neoutilitarian building from which I had escaped. But still, it was built in the 1960s when the UK had spent all the Empire’s money keeping us all free from the Nazi (then Soviet) yoke.

Generation Y have a munch better lot of it. Student accommodation is now considered by Jones Lang LaSalle to be a ‘mainstream global asset class worth an estimated US$200 billion’, and in 2012, USD $3 billion was transacted in UK alone, over twice as much as in 2011.

With the emergence of a burgeoning middle class in Asia, and Chinese and Indian parents wanting the best education for their children that money can buy, growth in student numbers worldwide went from 98 million in 2000 to 165 million in 2011 and is expected to reach 263 million by 2025.

From June 2011 to 2012, USD $4.7 billion was transacted worldwide, with the most active student accommodation markets in the US and UK. Plainly, with figures like this, there is plenty of scope for profit in housing students.

There are stacks of equity funds and REITS joining the student housing market, which was traditionally controlled by developer-operators, and with the choice out there, today’s students will not have to put up with the kind of dire accommodation that befell their unfortunate parents. Not to mention the lack of Internet or smartphones.

Alexander Knight

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MICA: 165/04/2012 • ISSN 2251-3949

BRAND NEW - 7% NET assured for 5 years in the UK’s No.1 property investment The 5th project from Vita Student, located in Bristol, UK.

Self-contained & fully managed from $151,351 SGD

•

Bristol awarded the highest ranking available in Savills’ recent Student Property Investment Index.

•

49,500 students in Bristol and just 13,000 student beds.

•

UK‘s strongest asset class.

•

Prime city centre location minutes from 2 universities.

•

Bristol’s highest quality student accommodation.

•

The University of Bristol is ranked 11th in the UK with more applications per place than any other University in the country.

•

Developed by the UK’s No.1 student property brand.

•

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Introducing a brand new £14 million development located in Bristol city centre - Vita Student at Colston Avenue. The fifth development launched under the luxury Vita Student brand, Vita Student at Colston Avenue follows the sell-out success of four previous projects comprising more than 600 properties.

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For more details on Vita Student investments Email: info@selectproperty or call: +44 (0)161 322 2222

Master Sales and Marketing Partner to Vita Student

Contents AUGUST-SEPTEMBER 2013

18

Student accommodation

Discover which universities around the world make for the best investment destination.

20 U N I T ED S TATE S

Double-digit returns for student housing in some American cities

25

ON THE COVER

U N I T ED K IN G DO M

Universities at the heart of city centres

30 AU S T R ALIA

The Australian student housing shortage

| Basket Apartments

The new style of dormitory building bears no resemblance to past examples of student accommodation. At the newly completed Basket student apartment complex in the 19th district of Paris, students are provided with a healthy environment for studying, learning and interaction.

As a bonus students are provided with a view over the City of Lights and the Eiffel Tower. © Photo courtesy OFIS Architects

37 F R AN CE

‘Logements universitaires’ student accommodation in France

41 J A P AN

Best time for student accommodation investment is now

48 CA N A DA

Sprawling campuses and well-organised accommodation system

10% RetuRns p.a.

Built & Fully tenanted uK student accommodation

campus House, BRadFoRd, uK campus House is a fully built uK student accommodation development that is now available with 10% guaranteed returns per annum for 2-years. a luxury development of 33 self contained studio & double apartments, the property is situated in the heart of the student district in Bradford, adjacent to both the university of Bradford and Bradford college.

Built & fully tenanted since 2011, the investment is already proving successful and investors benefit from no off-plan risks and immediate returns.

√ √ √ √ √ √ √ √

prices from £64,950 10% assured Returns for 2 years Built & Fully operational superb occupancy levels excellent location professionally managed limited availability Reserve today for just £500

enQuiRe today & ReceiVe youR FRee inVestment pacK to discuss this opportunity further & benefit from immediate returns, contact us today:

call: +44 (0)1202 765 011 email: sales@selectukproperty.com Visit: www.selectukproperty.com

Contents AUGUST-SEPTEMBER 2013

14

66

69 90

53 F E AT U R E S

14 WEALTH MANAGEMENT

UNIVERSITIES 58 TOP AROUND THE WORLD

85 ASSISTIVED LIVING

16 STRATEGIC INVESTMENT

WITH IMPRESSIVE 66 CITIES ARCHITECTURE

90 ROOM TO STUDY

53 CAMPUS OF THE FUTURE

69 RICHARD MEIER

REGULAR

When it comes to saving for a child’s education, sooner is better.

Capital growth and rental yields: finding the balance between the hype and the facts.

Technology means segments of the world's population who once could not afford or access an education can now earn a university degree.

56

EDUCITY IN ISKANDAR MALAYSIA Some believe the future of education lies with Open Universities. Here's another take.

Ranked by reputation and achievement, universities in the USA dominate this list.

When one talks about architecture, there are only a handful cities that automatically come to mind.

The ubiquitous architect transforms buildings into visual poetry.

The future of technology is here today, helping the elderly and those with functional limitations live more independently.

How to decorate a student accommodation property investment.

06 NEWS 72 COUNTRY GUIDE

82

BRAZIL IN CRISIS

92 CELEBRITY ESTATE

The growing middle class in this emerging economy have no where to live.

95 PROPERTY INVESTMENT 96 SINGAPORE MARKET UPDATE

NEWS A UGUST — SEPTEM BER 2013

10 H

countries

with the fastest rising house prices

ouse prices across the globe went up by an average of 6.6% in the last 12 months to March 2013, property consultant Knight Frank reported.

It is the highest growth rate since Q2 2010, driven mainly by East Asian property markets.

Here are the top 10 nations that registered the fastest increase of house prices.

RANK

COUNTRY

% OF INCREASE

housing markets in the US It is now a sellers’ market for these seven housing markets in the US due to low inventory levels and growing demand. Majority of the 146 markets tracked by Realtor.com are on the West Coast and Southwestern United States.

1

Hong Kong

28.0

2

China

23.8

3

Dubai, United Arab Emirates

21.1

Orange County, CA

4

Colombia

16.6

Number of homes listed went down 52%.

Median list price went up 32%.

5

Brazil

12.2

6

Taiwan

12.2

7

Turkey

11.5

8

South Africa

11.3

9

Indonesia

11.2

10

United States

10.2

SOURCE WWW.AU.IBTIMES.COM

Most expensive

warehouse rentals CITY

PRICE USD PER SQUARE FOOT

1

Greater Tokyo

$23.28

2

London

$19.61

3

Singapore

$17.51

4

Stockholm

$14.17

5

Hong Kong

$12.84

6

Sydney

$12.45

7

Brisbane

$11.74

8

Sao Paulo

$11.71

9

Perth

$11.02

SOURCE CBRE REPORT WWW.REALTYTODAY.COM

6

Booming

Oakland, CA Median age of inventory is only 15 days.

Homes listed for sale dipped almost 50% in 2012.

San Jose, CA Property listings cut by 12% over the last 12 months. 10% of offers are in cash or big down payments with 40% to 60% cash offers.

Los Angeles, CA Sale listings dropped 43% while median list prices for homes grew 34%.

Seattle-Bellevue-Everett, WA Housing inventory is down to a 1.09-month supply, while prices increased 19% over the last 12 months.

San Diego, CA

Sales in April rose 10% compared to the same month in 2012, while for the same period inventory dipped 35%.

Denver, CO

Listings dropped 34% in the last year.

NEWS A U G U S T — S E P T E M B ER 2013

Seven tips for commercial real estate investment

Investopedia is a website dedicated to educating investors around the world. They released some tips for investors of commercial real estate to help identify a good deal and lay a practical 'blueprint' for investment.

1

Learn what the insiders know

2

Map out a plan of action

3

Learn to recognise a good deal

4

Get familiar with key commercial real estate metrics

5

Look for motivated sellers

6 7

Especially differences between commercial and residential properties, cash-flow scenarios, lease structures and the value of cash in hand.

How much can you afford or expect as a return?

Who's involved in the transaction?

Assessing risk and knowing when to walk away.

Net Operating Income (NOI), Cap Rate and Cash on Cash are the most common.

Can you get a deal below market value?

Discover the fine art of neighbourhood 'farming'

Scan the area for other, similar properties and talk to their owners.

Use a 'three-pronged' approach to evaluate properties Don't just rely on internet portal listings.

Try classified ads as well as real estate finders or buying agents.

$151.50 BILLION

Half of the USD $303 billion in UK commercial real estate bank loans that are likely not refinancable (on available terms in today’s lending market) due to falling property values. Leicester University explained the loans are too high compared with the real estate backing them.

263 MILLION

IITotal number of students expected globally by 2025, which will greatly affect the student accommodation property market. USD $3 billion was transacted in the student accommodation market in the UK alone in 2012, over twice as much as in 2011. From June 2011 2012, USD $4.7 billion was transacted worldwide.

20,700 YUAN

The average cost per square metre of a property in Shanghai, China (USD $3,339). It was 11% less compared to previous weeks, reflecting the volatility of the real estate market in the country.

13%

Real estate market’s share in China’s gross domestic product, valued at USD $7.32 trillion.

$99,400

The average salary of real estate professionals in the Asia region, in USD. The highest paid are in Singapore with about USD $135,900, while the lowest are Malaysians at about USD $55,700. The data are from the Royal Institution of Chartered Surveyors and Macdonald & Company’s yearly Asia Rewards & Attitudes Survey 2013.

SOURCE INVESTOPEDIA.COM

7

NEWS A UGUST — SEPTEM BER 2013

15

most transparent real estate markets in the world

T

he index from Jones Lang LaSalle covers 97 markets. The top 10 countries are considered ‘highly transparent’ when it comes to real estate transactions, and the next five are classified as ‘transparent’.

To determine the composite score, the index used five sub-indices: investment performance, market fundamentals, listed vehicles, regulatory and legal and transaction process.

The 2012 Index was made amid a world economy still in recovery and with real estate investors and corporate occupiers still expanding their activities across a broader range of markets. Their engagement in cross-border activities has encouraged faster rates of transparency improvement, especially in emerging economies, as markets open up to international competition and their real estate sectors accept global best practices, said Jacques Gordon, Global Head of Strategy for LaSalle Investment Management, the investment management arm of Jones Lang LaSalle.

RANK

8

COUNTRY

While the US topped the index, the growth markets of Mexico, Indonesia, South Korea and Turkey showed the greatest improvements in transparency.

In Europe, the transparency gap between Western Europe and some of the main Central European markets has bridged as the core CEE markets approach the mainstream.

Another noticeable trend is the emergence of environmental sustainability as a vital transparency factor in the UK, Australia and France. UK introduced the world’s first green building rating system, while Australia is the test site for new environmental laws, regulations and incentives.

Outside these 15 markets, Jones Lang LaSalle pointed out that there has been transparency progress made in the past two years in Brazil, emerging Asia, Mexico, and Central and Eastern Europe. The observation is based on improving market fundamentals data and performance measurement, combined with better governance of listed vehicles.

COMPOSITE SCORE

RANK

COUNTRY

Top three luxury real estate markets in the US

A

gents who want to start a career in selling luxury real estate are advised to read the June 10 article in Inman News that spells out new opportunities in luxury properties.

The report noted that the luxury market had turned around again after several dreadful years of soaring inventories and few buyers.

The profile of the luxury home real estate buyer said they often purchase homes with price tags of USD $10 million and above, are usually in the age range 45 and 54, more than 50% are married and 72% buy properties in local areas.

The top three luxury markets 1

Aspen, Colorado

2

The Hamptons, Attracts socialites New York

COMPOSITE SCORE

1

United States

1.26

9

Sweden

1.66

2

United Kingdom

1.33

10

Switzerland

1.67

3

Australia

1.36

11

Hong Kong

1.76

4

The Netherlands

1.38

12

Germany

1.80

5

New Zealand

1.48

13

Singapore

1.85

6

Canada

1.56

14

Denmark

1.85

7

France

1.57

15

Ireland

1.96

8

Finland

1.57

SOURCE JONES LANG LASALLE

Offers pristine views and proximity to city life in Denver.

from all over the Eastern Seaboard.

3

Mercer Island, Washington

Provides ocean views and recreation, plus all of what Seattle has to offer.

NEWS A U G U S T — S E P T E M B ER 2013

Best and worst countries for buy-to-let property investment By comparing gross rental yields (based on average yields for 120-square-metre properties), income and capital gains taxes, transaction costs, landlord/tenant relations, long-term GDP growth, potential oversupply, affordability and long-term appeal to investors, the group at Global Property Guide created a country investment rating system.

Here's the best and the worst.

11 countries with excellent long-term buy-to-let investment ratings COUNTRY

Jamaica (Kingston) Egypt (Cairo) Ukraine (Kiev) Tanzania (Dar es Salaam) Panama (Panama City) Costa Rica (San Jose) Jordan (Amman) Peru (Lima) Bahamas Argentina (Buenos Aires) New Zealand (Auckland)

GROSS RENTAL YIELD

9.75% 9.40% 9.09% 8.57% 8.40% 8.38% 8.18% 8.17% 8.16% 8.06% 8.02%

23 countries with very poor long-term buy-to-let investment ratings COUNTRY

Taiwan (Taipei) Monaco United Kingdom (London) Andorra India (Mumbai) Singapore China (Shanghai) British Virgin Island (Tortola) Greece (Athens) Switzerland (Geneva) Hong Kong Malta (Valleta) Israel (Tel Aviv) St. Lucia Lebanon (Beirut) France (Paris) Canada (Toronto) Russia (Moscow) Austria (Vienna) Italy (Rome) Luxembourg Spain (Madrid) Finland (Helsinki)

$82,000

The cost in USD of a parking space in San Francisco’s South Beach neighbourhood, measuring 8 x 12 feet. The enclosed garage is inside a condominium building near the San Francisco Giants’ ballpark. Parking spaces in SF add up to USD $100,000, the purchase price of a property, or rented costs of between USD $400 and $500 a month.

$794 MILLION

In USD, the amount that the American Homes 4 Rent, a real estate investment trust, seeks to raise through an initial public offering. Based in California, they're offering 44.1 million shares at USD $16 to $18 each. The firm owns nearly 18,000 homes and will list on the New York Stock Exchange.

20,700 YUAN

Or USD $4,170, the record average accommodation value set in China’s Bauyan District after the ‘land kings’ deal in May 2013 – when mid-sized developer Kaisa Group bought a parcel of land at 1.87 billion yuan (USD $304.6 million). Chinese realtors use 'land kings' for land transactions that set record prices.

GROSS RENTAL YIELD

1.54% 1.90% 2.09% 2.39% 2.39% 2.41% 2.66% 2.85% 2.87% 2.94% 3% 3.23% 3.32% 3.57% 3.62% 3.63% 3.68% 3.80% 3.81% 3.84% 3.85% 3.92% 4.05%

97%

Full occupancy rate in Manila, which makes the Philippine capital city the leader in the country's office market among all central business districts in Q1 of 2013, according to CBRE Philippines.

150,000

Number of jobs to be lost because of the weakening of the housing market in Canada, which would escalate to 25% to 30% fewer housing starts across the country by mid-2015.

102

The number of days it takes to sell a house in regional areas of the UK, according to data from Home.co.uk. It is an improvement from the 184 days in May 2009.

9

NEWS A UGUST — SEPTEM BER 2013

Property prices in Brazil increase 15.2%

in the run up to the World Cup

BY VITTORIO HERNANDEZ

I

n anticipation of the South American nation hosting the World Cup in 2014, property prices in Brazil are becoming as hot as the dancers in Rio de Janeiro’s annual Mardi Gras celebration.

A report released by Knight Frank, a UK-based property consultancy, said that Brazil has the hottest property market in the world, based on a 15.2% increase in prices in the Global House Price Index in the last 12 months to Q3 of 2012. It is the largest increase globally.

Among the reasons behind the increase are the heavy investments in infrastructure projects, such as the construction of stadiums, airports, better roads and public transportation, which had reached almost USD $10.5 billion in 2012.

in Brazil’s real estate market would remain exempt from the financial transaction charge of real estate investment trusts traded in Brazil’s stock exchange.

CHRONIC HOUSING SHORTAGE To help bring in more foreign investors to Brazil, Emerging Real Estate will offer the Minha Casa Minha Vida (My House My Life) programme, aimed at investors with a social conscience and who will help ease the chronic shortage of houses in the South American nation.

The programme, an initiative of the Brazilian government, aims to construct

and provide affordable housing for locals with low to moderate incomes, and to tap investor funds to build the properties. It intends to build three million homes over five years.

‘We see this project as a fantastic opportunity for our investors for a number of reasons. Brazil has long attracted property investors who have purchased holiday homes that they then rent out to fellow tourists. While this is of course still an option, the global economic downturn has inevitably led to fewer people going on long haul holidays at the moment’, Morgan said.

World Cup host

However, such investments are expected to bring USD $54.1 billion into the Brazilian economy in 2014, said Tim Morgan, chairman of Emerging Real Estate.

Morgan added that private, foreign investors have poured substantial amounts of money into Brazil in the last few years, particularly in the region of Natal in the country’s northeast. Among them is the construction of the new Greater Natal International Airport, which will soon open, including new roads built or upgraded.

Foreigner investors were enticed to Brazil because of the extension of tax breaks by the government. Beyond the World Cup, for example, foreign investors

10

(Top) Brazil will host the World Cup finals in 2014.

The anticipation of this international sporting event has made Brazil the hottest property market in the world.

© FROM TOP: CRYSTIAN CRUZ, PREFEITURA MUNICIPAL/FLICKR

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NEWS A UGUST — SEPTEM BER 2013

Women entrepreneurs thrive in real estate market Instead of falling along with the economy, the number of professional women increased 7% between 2005 and 2012.

BY JONALYN FORTUNO

12

Statistics speak Statistics from 2012 speak volumes for how far women entrepreneurs have gone in the industry.

Global Entrepreneurship Monitor (GEM), an annual study conducted by a consortium of universities, reported, ‘For the first time in 13 years, women are creating businesses at a greater rate than men in three of the 59 surveyed economies.’

The study also showed how female entrepreneurs outperformed businessmen in certain nations, including Ghana, Nigeria and Thailand. In other countries

Expanding financial power

The IFC points to the growing financial power of women in developing nations, like India and Sri Lanka, as proof that women really know how to run a business.

such as Brazil, Uganda, Switzerland and Ecuador, they have seen an equal performance in terms of productivity from both genders.

In a different study conducted by Intel, World Pulse, UN Women and the U.S. State Department, it was revealed that the ‘simple task of doubling web access among females could add between USD $13 billion and $18 billion to annual GDPs across 144 emerging economies’.

As further proof that women really know how to run their businesses, the International Finance Corporation said that the ‘financial power of females is expanding across the world and particularly in developing nations’.

In the context of small business development, 2012 statistics reported that the US is home to around 10 million women-owned businesses, a significant change in the landscape for female entrepreneurship.

© MCKAYSAVAGE/FLICKR

N

ot only do women in real estate manage to earn a mindboggling fortune (as in the case of 15 wealthiest women in China), but also to weather the global economic collapse that almost broke the real estate industry to splinters in 2008.

‘There has been an elevation of women in this business. They have diversified in their risk taking and have moved up in the industry’, said Commercial Real Estate Women Network (CREW) past President Beth Lambert-Saul, who is now the executive managing director in the Dallas office of Cassidy/Turley Commercial Real Estate Services.

While some members of most organisations gradually dropped out, CREW’s CEO Gail Ayers added that they did not lose members during the downturn as women tended to keep their jobs. But she also noted that perhaps part of the reason why they stayed is that they earn a little less than men.

Taking this into account, Ayers stated in an interview with The Dallas Morning News that, ‘A s we roll out of this recession, we are working hard to get those women into the C suites'.

And now that the US real estate market is back on track, CREW is seeing an uptick in membership this year.

The organisation, with 8,000 members and 74 chapters nationwide, also intends to recruit more young women into the industry to keep the ‘pipeline full’.

‘Commercial real estate is not something many people think about unless they have a family member in the business,’ Ayers said.

9 10

NEWS A U G U S T — S E P T E M B ER 2013

3

How difficult is it for foreigners to own property in an ASEAN country?

The purchasing power of foreigners in South-East Asia.

10

Laos No one can own land in

Laos, but land-use rights are possible (up to 75 years, or 50 years for companies). A Lao citizen with land-use rights may lease the land to a foreign-invested company for up to 30 years. There is a vague law that allows for these land-use rights by foreigners only if investing at least USD $500,000 into the government. And while it's possible to own a structure upon leased land, when the lease expires, the structure reverts to the government without compensation.

9

Myanmar Foreign investment is

extremely regulated and restricted, and foreigners cannot own land.

It's possible to lease for up to 30 years, but with rampant corruption, there is no security. Alternatives include making a contribution to a joint venture with the government, or to lease land from the government and then enter into an agreement called a build, operate and transfer (BOT), which allows the investor to own the project.

8

Vietnam Nobody can own land

in Vietnam. One estate agency, Chesterton, markets 50-year leases to foreigners buying apartments, which provides for many of the same rights as ownership. Alternatively, foreigners can form a company or form a build, operate and transfer (BOT) company.

7

Brunei All land transfers, freehold or leasehold, are subject to the approval of the King, and foreigners cannot own land without approval. Foreigners who legally reside in Brunei can hold properties under strata titles, and residents as well as locally registered companies can hold long-term leaseholds of up to 60 years.

Banks, however, will not grant mortgages to foreigners, not even foreign residents.

6

Indonesia Foreigners can own

condos through strata titles, but the property developer holds the title.

Land ownership is also out of bounds but land-use rights are possible for up to 25 years. However, if a local buys the land on behalf of the foreigner, the foreigner may have either permanent land-use rights or full power of attorney over the land.

Another option is to form a company called a Penanaman Model Asing (PMA), which can be wholly foreign owned.

5

Cambodia Foreigners cannot own

land but can lease land, or purchase it though a local company (51% Cambodian owned). Another alternative - having a local buy the property on a foreigner’s behalf and then leasing it to the foreigner - is illegal and discouraged. In general, corruption and greed mean that for any foreign investment, extreme due diligence is required by the buyer.

4

Philippines Foreigners cannot own

land but apartments and condos are possible, as long as locals own 60% or more of the units in any development.

Leases are available on land for up to 50 years. It is possible for a foreigner to form a commercial partnership with some locals to buy land, but even then, the maximum for residential properties is 1,000 square metres or one hectare in a rural setting.

8

1 2

5

4

7

6

3

Thailand Foreigners cannot own

land but can own apartments or condos (as long as 60% of the building's units are owned by locals or the foreigner buys the whole building). Foreigners can lease land, but with few rights. Investing THB 40 million (USD $1.2 million) into a project may get you up to 1,600 square metres of land. Many foreigners form a Thai company, at least 51% Thai owned, or marry a Thai citizen (but in in the event of death or divorce, the land still does not belong to the foreigner).

2

Singapore Without approval, foreigners cannot buy restricted properties, such as a vacant lot, residential land, landed property, unapproved condo development or a Singaporean Housing and Development Board (HDB) flat. Foreigners can purchase an apartment, condo, and a leasehold estate in an otherwise restricted property (for up to seven years). Approval is considered for permanent residents or those who prove to be of significant economic or professional benefit to the country. There is also a scheme that allows purchase of landed properties by foreigners on Sentosa Cove.

1

Malaysia Malaysia is the only country in South-East Asia that allows full foreign ownership of property and land.

Foreigners can purchase any type of property if spending a minimum of RM250,000 (USD $78,456)*. This allows for up to two condos in a development with no more than 50% foreign ownership, or one condo plus a two-plus storied terraced house, or one condo plus land, bungalow or semidetached house. Foreigners can also get a renewable 10-year visa through the Malaysia My Second Home Programme (MM2H).

For more information, visit mm2h.gov.my. *Except in the state of Penang, where minimum investment must be RM 2 million on the island, or RM 1 million on the mainland for landed properties, or RM 1 million on the island or mainland for stratified properties. Sale of property in Penang is only allowed three years following purchase.

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COMMENTARY A UGUST — SEPTEM BER 2013

Wealth management

When it comes to saving for a child's education, sooner is better.

BY JAMES NORMAN

1 Where to study?

2 When are they going to need help?

3 What to study?

4 What will it cost?

5 Can I afford it?

Most of these questions can remain unanswered without a helping hand.

Research shows that educating your child in an independent school in Singapore from year 7 to year 13 costs around SGD $19,500 (USD $15,300). On average, to educate your child in an international school for just seven years can jump up to SGD $147,000 (USD $115,300). The 'real' figure can rise even more dramatically; factors such as school

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fee inflation, which tends to rise more rapidly than regular household inflation (CPI - the consumer price index) is often overlooked.

The cost of education is actually growing at around 7.5% p.a., and ancillaries and extra costs, such as uniforms, school bus travel, books, computers, school trips, etc., will also significantly increase the cost of educating your child. Some countries' qualifications are not recognised by top universities, so you may decide to send your children to boarding school and unfortunately the cost rises further still when educating your children overseas - flight expenses need to be taken into account and an admirable boarding school can cost in the region of SGD $39,000 (USD $30,500) per annum.

Ancillary costs or extras can add a further 25% to 50% of school fees to the total estimated cost, whilst classification as an overseas student can see university fees escalate by over 350%.

According to AIA, a Singapore-based insurance and financial consultancy, by 2015, the estimated average total education costs (tuition and living expenses) for your child to obtain a degree (school costs + university costs) in Singapore is

SGD $93,854 (USD $73,500). To obtain a degree in the UK, the average cost is estimated at SGD $215,533 (USD $169,000). These costs will rise dramatically by 2035, with the cost in Singapore expected to rise to SGD $178,787 (USD $140,100) and in the UK more than doubling to SGD $522,220 (USD $409,000), based on current exchange rates.

If we focus on university education alone, with fees close to SGD $20,000 (USD $15,670) per year in the UK, with an equivalent level of living expenses, then by 2035, the average annual cost of education per child (based on education costs rising at 7.5% p.a. and living expenses rising at 3% p.a.) could be as much as SGD $50k (USD $39k) p.a., so totalling SGD $150k (USD $117,675) per child for a three-year degree.

Time is your ally Your child may be young and higher education might seem a long way off, but time is your ally when it comes to planning. As higher education costs escalate, the key to securing the path for your child is to start saving early and regularly with a clear goal in mind and with a trusted partner to guide you along the way.

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I

t is a given that, as parents, we want the best for our children in every aspect of their lives. Yet on the subject of education, the fear of the unknown can take over. Few parents have ever sat down and worked out exactly how much it would cost to send their children through the international education system here in Asia and then on to a university overseas.

Some important questions spring to mind on the subject of education:

COMMENTARY A U G U S T — S E P T E M B ER 2013

Your child may be young and higher education might seem a long way off, but time is your ally when it comes to planning.

Consider the following example: two families - the Smiths and the Petersons, both UK expatriate families - have been based in Singapore for three years. They've obtained Permanent Residency (PR) in Singapore and intend to remain there for the next five years and will likely return to the UK thereafter.

They are also lucky enough to have local schooling paid for as part of their expatriate living allowance.

The Smiths have a 5-year-old daughter, Victoria, whom they expect to go to university - she is very bright and they would love her to go to Oxford University in the UK, just like her father. They believe in planning early, so started an 18-year-savings plan for the purpose of university education once Victoria was born.

The Petersons have a son, Jeremy. He too is 5. Both Mr. and Mrs. Peterson went to university and would love for their son to follow in their footsteps. They both got scholarships so had their fees paid for and are hopeful Jeremy would too, so haven't really thought about saving for university fees. At his 13th birthday, they start to get concerned that he may not get a scholarship so have to make up this savings shortfall.

What savings requirements do they have to reach the same estimated university tuition fees and living expense amount of SGD $150,000 (USD $117,675)?

Remember, the Smiths have had 18 years of saving low and slow as well as the benefits of compound interest. The Petersons have just five years of saving hard and fast.

Assumptions MONTHLY SAVINGS OF

$2,125.00

$390.00

7%

7%

(IN SGD)

ASSUMED GROWTH LEVEL THE AGE YE AR 1

4,961

YE AR 2

10,219

YE AR 3

15,793

YE AR 4

21,702

YE AR 5

27,964

YE AR 6

34,603

YE AR 7

41,640

YE AR 8

49,099

YE AR 9

57,006

YE AR 10

65,387

YE AR 11

74,271

YE AR 12

83,688

YE AR 13

93,671

YE AR 14

27,030

104,252

YE AR 15

55,682

115,467

YE AR 16

86,053

127,356

YE AR 17

118,246

139,958

YE AR 18

152,371

153,317

Assuming 7% growth and starting early, the Smiths need to save just SGD $390 (USD $305) per month, whereas 13 years later, the Petersons need to save a whopping monthly amount of SGD $2,125 (USD $1,665). Imagine the impact on this family's monthly cash flow, not to mention the risk that if they don't manage to save enough (because they simply may not be able to afford to). Jeremy could end up building up huge debts or, worse still, be unable to attend university altogether.

The numbers speak for themselves.

Delay saving for education by even one year and you'll have to save an additional 9.5% every month thereafter just to reach the same goal. Delay saving by five years and you'll have to save an additional 64% each month. At 10 years, this rises to 212% and in the above example, a delay by 13 years - i.e start saving when your child is 13 - this rises to an additional 450% more every month. Put simply, you'd need to save SGD $2,125 (USD $1,665) per month for five years just to put one child through university.

The message is simple: start early - as early as possible.

This article should help you understand that, with proper planning, your child's education is easily affordable no matter what path you may choose. In short, it's a blueprint to help you sow the seeds now and reap the rewards in the future. For I truly believe that if you fail to plan, you plan to fail.

JAMES NORMAN has over 10 years' experience in finance - having worked in foreign exchange, risk management, insurance, investment management and financial advisory. He holds a degree in Economics and Finance from Southampton University in the UK and has been based in Singapore for over two years where he's been working as a licensed Wealth Management Consultant for The Henley Group. He holds all the relevant Monetary Authority of Singapore (MAS) financial advisors representative qualifications. He has a broad knowledge of retirement and education planning, tax efficient investments, life insurance, foreign exchange and estate planning and is regularly asked to provide market commentary for media publications. To share your views with James or to find out more about him, email jn@thehenleygroup.com.sg.

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COMMENTARY A U G U S T ­– S E P T E M B E R 2 0 1 3

Strategic

investment Capital growth and rental yields: finding the balance between the hype and the facts. BY SCOTT O. TALBOT

I Capital growth charts often show peaks and troughs that seemingly portray alarming losses, when in fact what occurred was huge growth tempered by a slight cooling.

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n an age where journalists are constantly under pressure from their editors to publish sensationalist headlines and capture readers’ attention, the facts can only be interpreted when you cut out the hype and opinion.

Capital growth charts often show peaks and troughs that seemingly portray alarming losses, when in fact what occurred was huge growth tempered by a slight cooling. But that doesn’t count for much if a journalist uses a percentage graph.

The casual observer can easily be misguided and believe the hype.

SO WHERE DO WE FIND THE BALANCE? Sophisticated investment varies from country to country. While some markets enjoy moderate capital growth and high rental returns, some have low rental returns that barely meet the cost of the property, but enjoy exceptional capital growth.

What happens over a 12-month period has no relevance to an investor’s wealth and net worth over a five- or

ten-year period. A 2% drop in value followed by a 10% rise in capital growth equals an overall increase of 8%. Some will only see the drop, while a property investor clearly discerns an 8% gain and opportunity.

Real estate is not the stock market.

There are predictable, seasonal, annual cycles in property values based on the weather alone. Couple this with public holidays and it’s obvious that selling your property in the midst of winter on a public holiday will not attract as many buyers as the spring market with flowers blossoming in the garden. These stimuli can be calculated in annual and bi-annual fluctuations in the market but rarely affect the overall capital growth rate.

External influences, such as behavioural reactions to global and financial news, have a direct effect on the capital growth rate of Australian property: Europe’s financial crisis, riots in London, Spanish unemployment, war. All these elements are just behavioural reactions to global issues that have little or no relevance to the Australian property market.

COMMENTARY A U G U S T ­– S E P T E M B E R 2 0 1 3

HOUSE PRICE INDEX

Index 100 = March 1987

Australia

USA

New Zealand

United Kingdom

SOURCE ABS, S&P/CASE-SHILLER. NATIONWIDE, QV/RBNZ

As an example, during the GFC, while financial anarchy was devastating most of the world, immediately preceding the demise of many financial institutions in Europe, the Australian property market experienced an exceptionally high capital growth rate (against safe and normal capital growth rates) as the behavioural reaction of Australian and overseas investors immediately, again behaviourally, rushed to put their investments in the safety of Australian bricks-and-mortar investment.

The above figures show a behavioural reaction to what would have been assumed to be a devastating set of circumstances which only benefited Australian investors.

This demonstrates Australia’s resilience to global economic turmoil as a country of stable government, stable economic policy and opportunity, in stark contrast to a globally suffering economy.

Why has Australian property flourished while others have crashed?

1

There are housing shortages

2

Supply and demand are monitored and controlled

3

Strong overseas migration and investment

4

Australian household sizes are shrinking, meaning more families and individuals want or need their own home

5

Mortgage interest rates are at record lows

And with Australian property providing such a stable and solid investment, the only question about the capital growth on your property is what to do with all the equity that builds up over time.

SCOTT O. TALBOT is the Managing Director of UCHK Consulting Limited and one of Australia’s most respected international businessmen, community leaders and philanthropists. He has over 25 years of experience in strategic property investment, business development, politics and philanthropy.

UCHK Consulting outlines a clear path for existing and potential property investors to empower them to achieve phenomenal returns on their investments. For more information, or to speak to a qualified consultant in your area, please visit www.property.org.au or email info@uchkconsulting.com.

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INVESTING in STUDENT ACCOMMODATION: is it a profitable venture?

I

By 2025, a large portion of the estimated 263 million students across the world are going to need a place to live, and the universities they attend won't be able to accommodate the demand.

Property Life investigated seven of the most important countries for student accommodation investment and discovered what's hot and what's not.

n the 2013 ranking of the top 100 universities in the world compiled by the Times Higher Education, American and British universities dominated the top 10 ranking.

Why the universities of these two countries always lead global ranking is not a surprise considering the resources the two nations place on the education sector. Add to that the fact that the US and UK are economically progressive nations, which means that residents can better afford the high cost of pursuing a university degree.

In contrast, sending a child to university is a challenge for parents in developing nations because, beside the need to raise a substantial amount of money for tuition, they often have to pay higher accommodation rates due to the lack of universityrun housing, which typically charges cheaper room rates than those operated by the private sector.

But in both stable and emerging economies, the need to house a growing number of students spells out investment opportunities for private developers and investors alike. In fact, Jones Lang LaSalle recently issued a report about the student accomodation market, calling it a 'global asset class' and estimating its global worth at over USD $200 million.

While the strongest markets with the highest volume of transactions exist in countries with the top-ranked universities, namely the United States and the United Kingdom, opportunity abounds in several other markets around the world, too, such as Japan, France, Canada and Australia.

BY VITTORIO HERNANDEZ

Š COLLEGE DEGREES 360/FOTER

DIFFERENT ACCOMMODATION SCENARIOS

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Despite the best effort of universities, whether they are in developed nations or emerging economies, these educational institutions could never provide rooms enough for all enrollees. In the US, for example, universities provide accommodation for only 30% of their student populations.

Of course, not everyone needs accommodation because some students have the luck of having family homes near their universities or within traveling distance.

The rest of the student population, whose family homes are far away, or even overseas, would have to sign on early enough to qualify for a university-operated accommodation or to rent a unit or share a room in studios, boarding houses and hostels owned by property investors near their universities.

Across the countries where Property Life reviewed the student accommodation offers by both school and private operators, we found that operating such types of properties was a good business model for several reasons, from a stable tenant pool to high rental yields.

On the part of the school, for example, running a dorm or flats for rent is a good way of supplementing the university’s income (on top of the tuition they charge).

Demand is always higher than supply, so they never run out of renters. Providing rooms for enrollees also helps students arrive in class on time and saves them transport money, particularly if the accommodation is within walking distance of other campus buildings.

However, in spite of efforts by many universities to increase the number of available rooms for students, many universities would never be able to accommodate the bulk of their enrollees. Students would have to look to private providers for additional housing facilities, especially for upper-classmen and those whom the universities cannot take in.

Private property owners who have the fortune of having homes for rent near universities or are situated in a city centre where the university is spread around are assured of good income almost all year round. And in most cases, as you're about to see, the rental yields are higher than the average buy-to-let property investment scenario.

RENTAL YIELDS Among the markets that Property Life reviewed, majority of them yielded encouraging results for potential investors in the student accommodation market.

In spite of universities' efforts to increase student housing, demand exceeds stock, and students have to look to private providers.

In UK, the average total return for institutional student property was 9.2% across England and Wales. Canada is considered the new investment destination yet the return on investment is between 20% and 30% over four to five years and yearly rental yield ranges from 5% to 8%.

Rental yield in Japan are also encouraging, ranging from 4.46% to 6.35%. In Australia, rental yield is a similar 4.6%.

In the US, the market for student accommodation is characterised by high demand that owners of such properties in the UC Berkely area do not find the need to even hire agents to help them find tenants.

In some cities, especially in the hotter markets of California and the East Coast (New York, Massachusetts, Connecticut), rental yields are known to soar as high as 10%.

In fact, we found that the only exception is in France, where property experts suggested for potential investors to wait because rent yields in Paris are on the lower side at 3.26% to 3.85%. This is likely due to flat growth expected of the French economy, and subsequently its housing market, for the rest of 2013.

THE CHANGING EDUCATIONAL LANDSCAPE But beyond providing a place for students to sleep, study, dine and take a bath, facilities providers – both those operated by the schools or private owners – should take into account the changing landscape of university student demography from the later teenagers and young adults to a growing number in their late 20s and some with families.

Modern technology now requires that the accommodation must also provide connectivity since majority of the students – whether they are teens or adults – often need 24/7 connectivity for their laptops, smartphones and tablets.

It is not only the rental operators who should be prepared for more changes, but also traditional universities as more and more students prefer the Open University system.

Private-run accommodation providers, however, have more leeway in their businesses because an Open University system would allow the students to engage in fulltime or part-time employment, thus providing them more disposable income to afford better rental units in the city centre closer to job opportunities.

But the traditional universities – some of which have survived centuries of change in governments and the physical environment – will not disappear in the shadows of Open Universities.

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UNITED STATES OF AMERICA

Living as a student in America

The global student housing market is currently worth about USD $200 billion, and growing. With a proper investment strategy and sound property management, it is not uncommon to realise double-digit returns on investment.

By Albert Fontenot

I

n the fall of 2012, nearly 22 million students attended a college or university within the United States. This is a record number of students and represents more than a 40% increase from the year 2000. This growth pattern is showing no signs of ending anytime soon as projections from the US Department of Education predict that total enrollment will reach almost 23 million by the year 2020.

In a 2007 profile of the top ten universities with the highest enrollment figures, there were only enough on-campus beds to handle a mere 19% of students.

One of the surprising trends indicated by the projections is the expected continuation of the upsurge in the number of stuPerfect example

Innovative technology is evident in the design of Simmons Hall at the Massachusetts Institute of Technology, one of the best universities in the US.

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dents at or over the age of twenty-five who will be attending university. One generation ago, in 1995, there were a little over six million students in that age group. By 2020, it is predicted that that number will approach 10 million. The so-called older students will make up more than 42% of the entire college population.

This is an important factor when considering student-focused housing, because older students will often have different accommodation needs. They may be married with children, or have jobs with working hours that require more flexibility than is afforded at most residency halls.

Even younger underclassmen, who traditionally make up the bulk of on-campus

residents, have come to expect more from their housing. Most of these students grew up with cable television, a computer, and Internet access, and they never had to share a room. They want the same from their campus dorm room.

Yet the fact is universities have housing facilities that were built for a different era and are not suitable to accommodate the tastes and lifestyles of today’s students. In a 2005 study of 20 of the leading universities in America, the average age of the oncampus housing facilities was over 36 years.

Only one in four beds was in a private bedroom, only one in three had access to a semi-private bathroom, and less than 20% had a kitchen. By the standards of today’s

Š FROM TOP: JACOB RU/WIKIMEDIA COMMONS; BRIANAC37/FLICKR; OPPOSITE PAGE: Š ALEKSANDR ZYKOV/FLICKR

students, that makes these housing units horribly outdated and functionally obsolete.

Right now, approximately 70% of college students rely on off-campus housing.

In larger cities, where more students are used to commuting, that percentage is even higher. Antiquated dormitory rooms from generations ago, a changing student demographic and burgeoning enrollment are forcing many college campuses to rethink their housing policies as part of their overall student retention policy.

Many universities are faced to step away from their past mindset to meet the current and upcoming housing challenges.

The most obvious solution would seem to be the construction of newer facilities capable of housing the ever-growing influx of new students. This solution is of itself problematic for most campuses because of the prohibitive cost and the limited available space.

As an option, many campuses beset with this issue are altering or even outright lifting some of the restrictions governing which students may live off-campus. Public institutions, rather than private universities, tend to be more apt to offer this alternative. To some, this is a dramatic step that changes the entire college experience.

To others, this is only a pragmatic approach offered as a measure to keep a university’s enrollment competitive. Without this solution, some students could choose another school, one with better accommodation.

This combination of factors creates a multitude of potential opportunities for real estate investors. Colleges in every part of the country are dealing with the changes in the student housing landscape in varying degrees. The most popular offering to prospective tenants, and therefore the most profitable, would be housing equipped with modern amenities and would be within walking distance of a campus that has older, outdated dormitories.

To demonstrate the types of scenarios that exist for investors, presented here are snapshot profiles of a few prominent universities, each located in a different region of the country. While in no way intended to be an all-inclusive representation of all markets, the examples given should give pensive potential investors something to think about.

Harvard University & Massachusetts Institute of Technology (MIT) Two of the finest institutions dedicated to higher learning are both located in Cambridge, Massachusetts, mere minutes apart.

Not only is Harvard University, established in 1636, the oldest university in the country, it is also perhaps the most prestigious school in the world. Eight US Presidents, 139 Nobel Laureates, and 62 living billionaires have walked these hallowed halls as students or staff members. Just over 28,000 students are enrolled at Harvard, with more than 2,000 academic staff members. However, if all campuses are included, there are another 13,000 administrative staff members.

MIT is regarded as one of the premier private research universities existent, and as such, is extremely selective about the students they accept. Less than 9% of all undergraduate applicants are invited to enroll.

This campus has been graced by 78 Nobel Laureates, 52 National Medal of Science awardees, 45 Rhodes scholars, and 38 MacArthur Fellows. Current enrollment stands at approximately 11,000 students and 1,000 faculty members.

If the undergraduate student population is the target demographic, then both Harvard University and MIT are among the most difficult housing markets for entrant real estate investors in the country. Freshmen are required to live in university hous-

Number one

The Science Center of Harvard University (top), the most presigious university in the world. The town of Cambridge, MA (bottom), home to both Harvard and MIT.

21

ing, and the vast majority of upperclassmen reside there during their entire academic career. Both campuses have notably insular communities, purposefully directing the majority of all possible student activities.

Harvard even refers to this as the ‘Harvard Experience’, indicating an all-encompassing amalgam of academics, social events, Greek letter organization obligations, and cultural experiences.

MULTI-UNIT HOUSING The largest, albeit still challenging, opportunity for rental property investment seems to be for multi-unit housing that can accommodate students, faculty, and staff with families. Suitable family-friendly apartment housing for those affiliated with the schools is of inadequate supply. The official website for Harvard Law School states, ‘Housing in the Cambridge area is both scarce and expensive, and admitted students seeking off-campus housing are encouraged to begin their search early.’

Both schools own and operate apartments that are available for lease by married

students and students with families—if one is generous with the meaning of the word ‘available’. For example, Harvard Real Estate, Inc. provides a list of offerings, but a lottery has to be held just to be placed on a waiting list. MIT has two apartment complexes, each capable of housing just over 200 graduate students, plus their families, but these buildings were originally built in the 1960s.

The current lease rates at MIT’s Westgate property range from USD $1,192 per month for a very small efficiency apartment to USD $1,585 for a 660-square-foot twobedroom unit.

Public Ivy

Sproul Plaza at UC Berkeley. © STEVE MCCONNELL

Lorem Ipsum Lorem Ipsum

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The University of California at Berkeley Founded in 1868, the University of California at Berkeley is the oldest and most prestigious of the ten campuses that belong to the University of California system.

It overlooks the San Francisco Bay, and has easy access to both San Francisco and Oakland. It boasts a total student enrollment of approximately 36,000 students and has almost 1,600 full-time members of the faculty. Another 500 members teach classes on a part-time basis.

National academic rankings routinely rate both the undergraduate and graduate degree programmes as among the very best in the entire world. UC Berkeley is considered to be a ‘Public Ivy’ institution, meaning it offers an education and experience comparable to the elite Ivy League schools such as Harvard or Yale but is able to make that offer at public university prices.

As proof of the pre-eminence of the various academic disciplines at UC Berkeley, one has to look no further than the extensive catalog of achievements reached by its alumni, faculty and affiliated researchers who have produced 71 Nobel Prizes, 11 Pulitzers, and 20 Academy Awards. There have been 15 Turing Awards, celebrating the highest achievements in the field of computer science, and another seven Fields Medals, recognising the same distinction in mathematics.

LIVING IN BERKLEY The student housing situation at UC Berkeley is unique. Entering freshmen are guaranteed two years of university housing and incoming transfer students likewise receive a one-year guarantee. Continuing upper-division students who wish to keep on living in university accommodations must apply and are approved for placement using a lottery system.

Students with a spouse, domestic partner, or children can apply for placement in Family Student Housing and are accepted and assigned on a priority basis. The highest priority is given to unpartnered students with children, and the lowest priority is given to married or partnered students without children. Just as with single students, incoming freshmen with families are guaranteed a housing offer. Graduate students, post-doctorate fellows and visiting scholars

can also apply for Family Student Housing, but their applications are given less of a priority than students.

Currently, the university housing rates are USD $12,356 per school term for a three-person dormitory assignment, up to USD $17,680 for a single suite. Family Student Housing is located at one of two recently constructed units at the University Village in nearby Albany. A two-bedroom, one-bath apartment leases for USD $1,683 per month up to USD $1,999 for a threebedroom, two-bath flat.

As a public institution, UC Berkeley is less restrictive than a private university when it comes to student residence.

Students who wish to live off-campus may avail themselves of Cal Rentals, a real estate listing service. To provide the greatest possible volume of available rentals, Cal Rentals does not charge the landlord, but instead charges a small fee to students and faculty who are seeking accommodation.

Biggest employer

With almost 14,000 employees, UC Berkeley is the largest employer in the city of just 112,000 residents. Š ALAN NYIRI

On the Cal Rentals website, there is a posting of the typical range of rental rates for various property rentals. For example, a room in a shared domicile averages USD $776 per month. An efficiency apartment will cost approximately USD $1,047, a one-bedroom unit averages USD $1,325, a two-bedroom apartment USD $1,876, and a three-bedroom house can be rented for USD $3,282 per month. One of the key features of this service is that it gives a high and low range for each class of rental, both in and outside of the city of Berkeley. As stated, a two bedroom house or apartment has an average rate of USD $1,876 in Berkeley, but the service advises that it can be as low as USD $1,070 in neighboring communities, or as high as USD $4,000, nearly four times that much, if the preference is to remain closer to the campus.

There are a number of factors that combine at this location to shape the opportunity for rental property real estate investors.

The first contributing factor is the target demographic. Since freshmen are guaranteed a university housing offer for the first two years, that effectively eliminates the majority until they are academic juniors. However, the lottery system and typical resident attrition increases the likelihood that the larger share of students will seek off-campus housing as upper-classmen. Anticipating the needs of upper-classmen and graduate students should be the focus of any investors efforts.

THE CITY OF BERKLEY The second contributing factor is the city of Berkeley itself. Berkeley is a relatively small city, with only about 112,000 residents. The university is by far the biggest local employer, with nearly 14,000 employees. The area surrounding the campus is the most densely populated area of the city. As goes the housing needs of the student body at UC Berkeley, so go the fortunes of any real estate venture.

The third and largest contributing factor is the high demand. Property owners in the UC Berkeley area have virtually no need to ever hire agents to promote their locations because they know that they will have no problem finding tenants. Even the website at Cal Rentals states that rent for newly constructed rooms and apartments tend to be in the upper range.

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University of Michigan The University of Michigan is one of the top universities in the world. Like UC Berkeley, Michigan is one of the original Public Ivy institutions and is also a founding member of the Association of American Universities. As a premier research university, the school has made important contributions in the fields of computer science, technology, and medicine. A Michigan staff member made the announcement of a polio vaccine.

The university was founded in 1817, making it 20 years older than the state it-

self. It is located in Ann Arbor, Michigan, and is the primary influence on the local economy. The population of Ann Arbor is just under 114,000 residents, while the university has a total enrollment of over 43,000 students. In addition, there are 6,600 members of the academic staff and another 18,500 workers on the administrative staff. Including workers at the medical center, Michigan employs approximately 30,000 workers.

Put together, the accommodations at the University of Michigan comprise the sixth-largest campus housing system in the nation. University housing is capable of providing space for 12,562 people,

Premier research

The University of Michigan is a premier research institution.

roughly 30% of the total enrollment. As a breakdown, over 90% of incoming freshmen choose to live in university housing, while the majority of upperclassmen and graduate students live off campus.

Because it is a public institution, there is no mandatory requirement for underclassmen to live on campus. The major impetus for this residential retention was the Residential Life Initiative, started in 2003 as an effort to improve student residences by reinvestment and renovation.

The North Quad was the first new housing construction since the 1960s, opened in 2010, and most of the other student accommodations underwent major updates and improvements.

There are extensive apartment-style facilities for students with families, graduate students, and postdoctoral research fellows. Unlike most other colleges, the faculty, staff, and any non-student affiliates are not eligible for University housing.

The rates for undergraduate housing range from USD $8,838 per student per term for triple occupancy rooms to USD $13,230 per term for a single room with a private bath. Accommodations for postgraduate students and students with families will start at USD $919 a month for a one-bedroom apartment without air conditioning, up to USD $1,259 for a threebedroom unit.

The second contributing factor is the city of Berkeley itself. Berkeley is a relatively small city, with only about 112,000 residents. The university is by far the biggest local employer, with nearly 14,000 employees. The area surrounding the campus is the most densely populated area of the city.

As goes the housing needs of the student body at UC Berkeley, so go the fortunes of any real estate venture.

The third and largest contributing factor is the high demand. Property owners in the UC Berkeley area have virtually no need to ever hire agents to promote their locations because they know that they will have no problem finding tenants. Even the website at Cal Rentals states that rent for newly constructed rooms and apartments tend to be in the upper range.

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Š ANDREW HORNE / WIKIMEDIA COMMONS

FINDING OFF-CAMPUS ACCOMMODATION

UNITED KINGDOM

Universities at the heart of city centres British universities are often not stand-alone campuses but rather spread throughout the city. In fact, the schools may integrate campus and city life into one. By Vittorio Hernandez

B

ritish universities continue to dominate the list of top universities throughout the world because of the high quality of education in the country. Conspicuously always on the top 10 list are the University of Cambridge, established in 1209, and Oxford University, whose exact date of foundation date is unclear, but there is evidence of teaching going back to 1096.

Both universities, as well as other major universities in Britain, are part of the city centre where they are located, with buildings, classrooms, libraries, student accommodations and other school facilities spread throughout the area.

This situation has created a symbiotic relationship between the two wherein the university contributes immensely to the lo-

cal economy, while the city, in turn, provides for the needs of the academic community within.

In terms of providing a shelter for students, this situation has worked to their advantage as well as the communities because the residents made available more rooms and flats for thousands of students who come from different parts of the country to pursue their academic degrees but could not all be accommodated in the universityrun accommodation.

Being in the town centre, the owners of the rental units enjoyed the advantage of having students as well as employees and young families as their tenant base.

Since there are always not enough rooms in school-operated accommodation to provide a place for all students enrolled, the situation opens wide the doors for de-

velopers and investors to be part of the solution to the chronic accommodation shortage.

The possibilities are wide. Developers could construct high-rises, row houses or even rehabilitate old industrial buildings into student flats. Residents who have spare rooms could take in bedspacers or boarders and earn a little income on the side. Other investors with more capital could buy old homes or bank-foreclosed properties and convert it into rental units.

With average student rents forecast to go up 3% in London and 2.75% in the regions in the next few months, based on the latest student index from Knight Frank and leading property investment firm Axis Investment, going into the student property business would provide very good return on the long term.

Top 10

UK’s University of Cambridge is always in the top 10 list of best universities in the world. Š LLEE_WU/FLICKR

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University of Cambridge Located in the city of Cambridge, the university is the second oldest in the Englishspeaking world. It was founded in 1231, based on a charter from King Henry III of England.

During the early times, many colleges were established for the purpose of praying for the souls of the institutions’ founders, explaining the presence of chapels or abbeys in the university. However, in 1536, King Henry VII ordered Cambridge to stop teaching scholastic philosophy, and it led to the move away from canon law toward the classic, Bible and mathematics.

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From these three core areas, new subjects and courses were eventually introduced such as history, modern language, arts, architecture and archeology.

At present, the University of Cambridge has 31 colleges and 7 academic schools with a student population of about 18,000 of which 3,500 are international students from 120 nations.

Cambridge has topped the last two British government Research Assessment Exercises in 2001 and 2008, making it the best university in the country. The university is also the top producer of PhDs per year, has the highest research paper output and has overtaken Oxford in philosophy, law, politics, theology, maths, classics, anthropology and modern languages.

Campus and city connection

Cambridge's economy is built around the university (top) since the student population (bottom) accounts for 20% of the headcount.

Student life in Cambridge, like in most British campuses, is built around the College, responsible for student admission, accommodation, meals, socialisation, academic and pastoral support and supervision.

With 29 undergraduate Colleges throughout the university (4 are for mature students and another 4 for females only), the university expects all single undergraduates to live in College-owned accommodations whenever possible.

Those who enlist early enough are guaranteed accommodation for the first 3 years, but 4th year students could also be taken in if there is still vacancy in the Colleges. The accommodation contracts run for one academic year, ranging from 30 to 39 weeks, which are shorter when compared to contracts in other universities.

Most of the Colleges offer a price band to suit different student budgets. A 30week year for a student who opts for a single study bedroom with a shared bathroom would have to shell out between GBP £2,400 and GBP £3,600 (USD $3,710 and USD $5,565). Those who opt for an en suite room would need to pay between GBP £2,700 and GBP £4,200 (USD $4,172 and USD $6,489) The room charges excludes kitchen facilities charges that range between GBP £400 and GBP £550 (USD $618 and USD $850), while college meals are GBP £3 to GBP £4 (USD $4.63 to USD $6.18).

These room rates include Internet connection to the student rooms made possible by a computer suite linked to the university network.

Because of the high academic standard in Cambridge, many students spend the bulk of their time in classrooms, group

© FROM TOP: BOB TUBBS/WIKIMEDIA COMMONS; KBANDARA/FOTER

These numbers will likely entice Londoners and residents of cities with universities in their vicinities to invest in institutional student property. In the year to September 2012, average total return for institutional student property was 9.2% across England and Wales, while average increase in capital values was almost 3%.

With the student property sector valued at about GBP £20 billion (USD $30.9 billion), student housing strongly outperformed other property assets and delivered total returns of 9.6% for investors, while those who ventured into office properties got back 4.5% and in retail 2.2%.

So what are the good places where there are opportunities for student property investors?

Oldest university

The age of the architecture of these two buildings in Oxford University helps confirm the school’s distinction as the oldest university in the English-speaking world.

The residents are also alarmed by potential income loss because of the expansion plan’s proposed housing offer to university workers at below-market rents based on Cambridge’s commitment that staff should not pay over 30% of net household income on accommodation, which would cover even those earning yearly GBP £47,000 (USD $72,607) or almost twice the national average salary.

Borysiewicz said that for Cambridge to continue attracting the best minds and keep them in the university, it must place high priority on relieving the chronic shortage of affordable housing. The initial target of the university is to complete the residences over the next 8 to 9 years.

Notwithstanding the possible competition from the university expansion, Cambridge is in the top 10 hotspots in the UK for property buys, according to Findahomeonline.com. The city is in sixth place with an average house price of GBP £191,000 (USD $294,722), rental income of GBP £11,000 (USD $16,974) and a gross yield of 5.8%. discussions and Internet research, but to ensure that the students would have time to socialise, the Colleges organise regular entertainment and social activities such as film nights and discos (called bops), while sports-minded students could use the university’s athletic facilities such as playing fields, tennis courts, boathouses, gyms and squash/badminton courts.

© FROM TOP: RUSSAVIA, TOBY ORD/WIKIMEDIA COMMONS

THE CAMPUS AND CITY CONNECTION With its students comprising about 20% of the Cambridge population, the university has accounted for the creation of 40,000 jobs in Cambridge between 1960 and 2010.

However, the harmonious relationship between the university and the residents that took years to fix is being threated by an ambitious GBP £1 billion (USD $1.5 billion) future expansion plan covering 141 hectares that will house 5,000 students, staff and their families, including accommodation for 2,000 postgraduate students

and 1,500 key university and college employees. Another 1,500 homes would be put up for sale.

The development involves university farmland that forms a triangle bound by Huntingdon Road, Madingley Road and the M11 motorway. It would include community facilities such as a supermarket and other shops, primary schools, nurseries, police station, hotel, doctors’ surgery, indoor sports and senior care facilities.

Cambridge Chancellor Lord Sainsbury of Turville and Vice-Chancellor Sir Leszek Borysiewicz led the ground-breaking rite on June 20, 2013 for the largest single capital development in the university’s 800-year history.

However, Councillor Lewis Herbert, head of the Cambridge City Council’s Labour group, warned the project could create ‘a university-only part of town’ since only the main community centre and the main open space, called Storey’s Field, would be run in partnership with the city council.

Oxford University Oxford holds the distinction of being the oldest university in the English-speaking world and the second-oldest surviving university in the world.

The Times Higher Education Supplement’s World University Rankings 20122013 ranked Oxford first globally in clinical, pre-clinical and health subjects, fourth for social sciences and life sciences, sixth for arts and humanities, tenth for physical sciences and eleventh for engineering and technology.

Located in the city of Oxford, England, the university, like Cambridge, does not have a main campus. It is made up of 40 self-governing Colleges and halls plus a central administration headed by the ViceChancellor

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Oxford has an academic year divided into three terms. The first, Michaelmas, begins from October and ends in December. The second, Hilary, starts from January and ends in March, and the third, Trinity, runs from April to June.

Of the 22,000 students enrolled at Oxford, almost 54% or 11,800 plus are undergraduates and the remaining 46% or 9,800 plus are postgraduates who have been admitted to Green Templeton, Linacre, Nuffield, St. Anthony’s, St. Cross, Wolfson and Kellogg Colleges.

Because of Oxford’s relatively smaller student population, the university provides the most generous no-strings attached financial support for students from the UK and European Union who belong to the lowest-income households. They receive GBP £10,000 (USD $15,423) on their first year and GBP £6,000 (USD $9,254) yearly.

Such financial support goes a long way in paying for accommodation in Oxford, which averages GBP £3,500 (USD $5,398) for three terms, excluding holidays. If the student opts to rent a room in university-run rooms, total living expenses is estimated to reach GBP £7,900 (USD $12,184) for the entire year to include food and other incidental expenses.

However, for Oxford students who would have to rent in private accommodation by choice, the university advises them for set aside GBP £6,900 (USD $10,641), inclusive of the GBP £1,000 (USD $1,542) utility bills for one academic year.

Then they must allocate another GBP £1,900 (USD $2,930) for food and GBP £2,000 (USD $3,084) for other living expenses.

The university assures accommodation for all undergraduate students during their first year and at least another year of study, and after those initial two years, they can opt to move out and live with friends in outside private rental units.

To be able to take in more students in university-run accommodation, Oxford, in 2012, began the development of four- to five-storey blocks of student flats overlooking Cripley Meadow and the historic Port Meadow. The one-hectare Castle Mill development, however, has stirred a hornet’s nest among residents because the apartments would block views of spires in the city centre.

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No main campus

Oxford University is made up of 40 self-governing Colleges and halls spread throughout the city.

Eight new blocks will be ready by September 2013 at Castle Mill, found in Central-West Oxford at the end of Roger Dudman Way, off the Botley Road close to the railway station. The 312 new flats, designed for postgraduate couples and their families, will have studio, one-bedroom and twobedroom units.

In response to the criticism that the development would block views, Oxford said, ‘The skyline of Oxford is a constantly evolving blend of the old and the new, the natural and the built. We recognise that the development has aroused some strong feelings and that these have every right to be heard’.

Ed Arthur, a former architecture student at Oxford, commenting on an archi-

tecture journal article on the controversy, said that while the accommodation issue in the university turns for the worse every year, ‘ugly and intrusive blocks are a dumb and poorly thought through way of alleviating this issue’. If Oxford persists in solving the accommodation problem this war, he warned, the university ‘will be hidden in the midst of yet more generic residential and mixed-use buildings, and will become no different from many other UK towns and cities.

Or with Cambridge, for that natter, since the university is the largest employer in the city of Oxford, supporting more than 16,500 jobs and injecting yearly GBP £750 million (USD $1.156 billion) into the regional economy.

Certain accommodation

Freshman students at Oxford are assured of university-run housing for their first two years.

© FROM LEFT: LAWRENCE OP/FOTER; ISLIP FLYER/FLICKR; OPPOSITE PAGE: DAVID ILIFF/WIKIMEDIA COMMONS

THE HOME RENTAL BUSINESS

In spite of the impact of the expansion on Oxford’s skyline views, Oxford will continue to be a good place for student accommodation investors. According to Findahomeonline.com Oxford City’s average house price is GBP £237,000 (USD $365,774), rental income is GDP £14,900 (USD $22,996) for a gross yield of 6.3%, second to Newham, East London’s 7.3% yield.

OTHER UNIVERSITIES Cambridge and Oxford are only two of the 116 universities in the UK, plus 116 more higher education institutions.

Other universities such as the University of West London, formerly known as the Thames Valley College of Higher Education, have bigger enrollments at more than 47,000 students. The University of Manchester has 39,000 students and the University of Nottingham has 34,000 students.

However, the biggest enrollment is that of the University of London, which has 135,000 campus-based and over 50,000 distance-learning students.

Most of them offer accommodation of some kind, but it is inevitable that students, especially the juniors and seniors, resort to renting rooms or flats from private residences. It is fortunate that most of the big universities have offices that deal exclusively with student accommodation, particularly in helping them find rental units during their student life.

With enrollment, boosted by foreign students, always increasing, these large universities are mostly in different stages of expanding their accommodation, while developers and investors are also on their own building high-rises, row homes and flats to rent out to both students and other city residents.

The home rental business in general will continue to be a lucrative enterprise, according to a Greater London Authority estimate that due to the soaring cost of home ownership, renters in the British capital, including students, would go up to 37% by 2025 from 25% in 2012. T he forecast is the result of average home prices in London reaching GBP £500,000 (USD $778,000) in May 2013.

This situation has resulted in developers rushing to build rental accommodations in London and other university cities, making rental flats the most exciting asset class in the property market, said Nick Jopling, executive director of Grainger, the largest publicly traded residential landlord in Britain.

Property expert Jones Lang LaSalle advises developers considering accommodation projects in areas where there are universities or significant number of tenants to build their investment properties on neighbourhoods that have access to transportation links since renters, especially university students, often do not have vehicles of their own.

As both universities and investors show more interest in building more accommodation, mainly for students, stakeholders could be guided by industry benchmarks listed in the revised Code of Practice approved by the British Parliament and became law on Nov. 25, 2010.

The initial code, approved in April 2006, covered university-managed student accommodation, larger residential developments for student accommodation managed and controlled by educational establishments and those not managed by educational establishments.

The revised code covers healthy and safety standards and procedures, fire safety, electricity and gas supplies, security and other issues related to repair and maintenance of the accommodation.

Although students are transients for a few years in a university town, providing them decent accommodation would certainly go a long way in helping them prepare for their future in the professional world.

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AUSTRALIA

The Australian student housing shortage The robust demand for student accommodation means that, while students earn their degrees, property investors can earn some cash. By Jonalyn Fortuno

H

ailed as one of the world’s leading research nations, Australia is responsible for at least three percent of the world’s research output. So contrary to what some think, Australia isn’t just magnificent landscapes, kangaroos and koalas. It’s also more than the long-stretching Outback that really gives justice to the word immense.

Australia is truly a powerhouse in the academic context as well. The country hosts 1,100 educational institutions offering at least 22,000 courses. Its exceptional

reputation is made all the more evident when seven of its institutions made it to the top 100 best universities around the globe, not to mention the 15 Nobel Prize laureates that the country has produced.

Universities are evaluated each year to ensure that they maintain an excellent quality of education. Additionaly, the government contributes AUD $200 million+ (USD $186 million) for international scholarships yearly. That in part explains why around 230,923 (estimated number as of 2012) international students looked past the US and UK to entrust their future to Australia.

University landmarks

Ormond College (left) and Queen's College (right) are two landmarks of the University of Melbourne. © DONALDYTONG/WIKIMEDIA COMMONS

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But top-rated universities are not the sole driving forces that propel the students to cross borders. Australia wouldn’t be Australia without the glorious scenery, tropical rainforests, magnificent beaches, and of course the famed laid-back nature.

It’s a draw to the international community on almost every level – academic, touristic and for a high quality of life.

The influx of international students does not only boost the universities’ academic ranking in the globe. On a larger scale, it also contributes to the country’s coffer. The Sydney Morning Herald wrote that Australia’s international education activities generate more than USD $15 billion of export income annually, and thus support more than 100,000 jobs. As a whole, Australian universities directly contribute around USD $22 billion to the GPD per year.

Given these figures, just imagine if the universities were able to meet their target to increase overseas enrollees by 30% (or 520,000 foreign students) by 2020.

mand for lodging. Indeed the steadily growing number of international enrollees serves as impetus for the student housing market.

TYPES OF STUDENT HOUSING INTERNATIONAL STUDENTS INCREASE IMPETUS FOR STUDENT HOUSING MARKET However, before embarking upon such a colossal goal, it’s worth checking the few areas imperative to the success of the internationalisation of the education sector. As International Education Advisory Council Chairman Michael Chaney says, ‘While Australia’s international education sector is in good shape as a leading destination, it is on the cusp of embracing a changed global future with significant competitor challenges.’

Indeed, Australia is not the only country that strives to attract international students.

There are other nations too, such as the US, UK and Canada, that have been recruiting legions of overseas students with the promise of better and broader education.

While Australia, as the US, UK and Canada, also has its fare share of student housing shortage, the emergence of other accommodation types offset the high de-

Besides the university-affiliated accommodation, alternative options include private purpose-built student accommodation (PBSA), homestays, hostels and guesthouses and the private rental market.

Of these choices, the ‘most sought-after option for today’s students is high-quality PBSA' says Jones Land LaSalle. 'University enrolments which account for the bulk of demand for PBSA remain relatively unchanged.’

Jones Lang LaSalle added that the robust international student demand is also attributed to the measures, in the form of Baird Review and Knight Review, introduced by the federal government, which

Off campus

Life is enjoyable outside the University of Melbourne campus in the world's 'most liveable city'. © BAHNFREND/WIKIMEDIA COMMONS

further strengthened the international education sector and thus boosted the student housing market, particularly the PBSA. Accordingly, the student-housing sector currently provides 41,520 beds from which 54% comes from PBSA, while university-affiliated housing accounted for the remaining 46%.

For other housing options, the private rental market is usually the next choice. But because not everyone can afford it, students backtrack to a more affordable accommodation, such as homestays, which cost between AUD $110 to $270 (USD $102 to $251) per week and hotels and guesthouses, ranging from AUD $80 to $135 (USD $74 to $126) per week. But these are only good for short-term accommodation.

For those who intend to finish a degree program, they would have to either rent, avail of the campus accommodation, or move fast to get a reservation for PBSA.

SUPPLY CANNOT MEET DEMAND Jones Lang LaSalle said the latter is currently experiencing a shortage in supply and may not be able to cope with the anticipated demand. But this wouldn’t stir a major problem because more investments opportunities are likely to crop up to fill the provision gap.

And these opportunities better crop up fast because, as the property firm forecasts, the robust demand for student accommodation will be seen all through 2013 and beyond, which is accounted for primarily by Asian students.

And where else would these students fancy to earn their degree than in Australia’s two leading universities?

University of Melbourne Being the second oldest university in whole of Australia has its edge, and the University of Melbourne knows just exactly how to enhance it. The array of achievements is a telltale of what this institution has been up to for 160 years.

Perhaps it is true when they say that things only get better with age. And in the University of Melbourne’s case, it ranks

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higher and higher as it ages. As a proof, it leapt nine places in the 2012 Times Higher Education rankings and placed itself in the top 30 universities in the world. Even better, it placed as the number one university in Australia.

Since its establishment in 1853, UniMelb—as it is commonly called— has long since been on the forefront in the field of research. Its academic excellence is also extended in the fields of the arts, humanities and biomedicine.

But to ensure its standing in the roster of world-class institutions, the university has undergone curriculum reforms in 2008. This undertaking enables its programmes to be in line with the best European and North American models, and thus make its graduates a worthy addition to the global workforce.

Suffice it to say that University of Melbourne offers the kind of academic environment where students would certainly thrive and diversify their knowledge. Proof that its students continue to make a difference even after stepping out of the university is the four Australian prime ministers and five governors-generals the institution has produced. In addition, it is also the alma mater of seven Nobel Prize laureates.

In order to cater to wide-range of specialisation, it offers several undergraduate degrees that cover more than 80 fields of study. According to the QS Top Universities website, UniMelb also offers ‘more than 340 graduate programs, including research degrees, professional development programs and a suite of professional entry programs in Architecture, Law, Teaching, Nursing, Medicine and Social Work, among others’.

Although situated at the outskirts of Melbourne’s central business district, this did not lessen the university’s appeal to the students. Accordingly, it has an estimated number of about 47,000 students, including more than 12,000 international students from over 120 countries.

STUDENT HOUSING AT UNIMELB When it comes to accommodation, the university offers different options that suit the students varying personalities and budgets.

It has a website called Melbourne Global Mobility Housing that guides the students in finding the right place to live.

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Campus dorms

A sample of some university-run dorms and study areas on offer at the University of Melbourne. © UNIVERSITY OF MELBOURNE

According to the website, one of the most popular housing accommodation is the shared household. Students can chip in on bills and rent, which makes this an ideal choice particularly for those with budget constraints as costs range from USD $19 to USD $230 per week. It wouldn’t be hard to find share houses because, aside from university assistance, suburbs such as Parkville, Carlton, North Melbourne and Brunswick offer this type of accommodation. These areas are also near the campus and public transport, so it is convenient for the students to rent here.

Next is the residential colleges, albeit much expensive than the shared houses at USD $549 – USD $665 per week. It can be noted that the university has 12 residentialcolleges that admit both graduate and undergraduate students enrollees. The good thing about staying in the residential colleges is that, besides establishing bond with other residences, students enjoy academic tutorials, intercollegiate sporting and social and cultural events.

But given the bulk of students who attend the university, the space is just very limited. In every four applicants, only one is granted a room. This is why when filing an application, students are usually advised to also check on an apartment or hostel as an alternative option.

Apartments located at the city centre are usually designed for the students and are fully furnished for student’s convenience.

However, when it comes to utilities such as water, electricity and the like, students would have to take care of those themselves.

Besides the weekly rental payment of USD $290- $370, they are also responsible for utility bills and connection fees for services.

The joy of living off-campus, especially if the place is at the city centre, is that students would have the chance to enjoy and explore what Melbourne has to offer. Hailed as the world’s most livable city, Melbourne can certainly make the student’s stay worth every penny.

And with students enjoying the life at the centre, this should be a sign for investors to venture on the rental market. Although rental yield is reported to be at 4.6%, average vacancy rate is 3.2%, which according to Colliers International indicates a strong investor market as it is usually assessed against a 3% vacancy rate benchmark.

‘For vacancy rates under 3 per cent, the market is considered to be undersupplied,’ Colliers added.

Sprawling campus University of Sydney's Camperdown Women's College.

© TOP LEFT: J BAR/WIKIMEDIA COMMONS; FROM BOTTOM LEFT: SYDNEY UNI/FOTER

University of Sydney Located in the southwestern outskirts of the Sydney central business district is the oldest university of Australia and the whole of Oceania. Built in 1850, the University of Sydney has always been known as a ‘comprehensive research and teaching institution’ with a dynamic vision on the ‘power of education’.

The university’s dedication to teaching is reflected in the installation of the stateof-the-art facilities, world-class staff, and series of curriculum reforms imperative for the academic growth of the students.

Over the years, the University of Sydney has become a prominent figure in the global vista as its name is always consistent in the list of top universities around the globe.

Just recently, it notched the 62th spot in the prestigious QS World University Rankings.

In terms of reputation, Times Higher Education (THE) placed it in the 49th spot for World University Reputation Rankings.

And as The World University Rankings put it, ‘this institution boasts more than 3,000 scholars overseeing around 49,000 students and offers research and teaching across 10 campuses’.

Given the numerous students who are keen to get into the university, it is fitting that the latter should offer more than 100

degrees across its campuses dispersed in the outskirts of central business district.

Its main campuses, however, are located at Camperdown and Darlington, where majority of the faculties and student services are based, including the library, which is by far the biggest in the southern hemisphere.

With at least 16 faculties, the university has opened its door to international students who are eager to be part of the university’s progressive academic environment.

Student Life

The students (top right, bottom) enjoy the fellowship and community.

To date, about 11,000 international students representing 147 nationalities have opted to earn a degree at the University of Sydney. As the latter intends to provide the best possible learning and accommodation so it could attract more from overseas, there are plans for renovation to put in more office, teaching and student space.

Because the university is also aware that student housing is of vital importance for the overseas enrollees, it recently purchased the Queen Mary Building, which will be converted into a student accommodation. It forms part of the university’s aim to increase the number of affordable student beds from 2,500 to 6,000 by 2015.

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Hard work

Students in the medical lab (top left) and workshop (bottom left) who would one day acquire diplomas.

The university's quadrangle (above) is witness to big campus events.

drew’s College, to name a few— also offer housing accommodation but only within the given time frame. Average rental price for a room is AUD $450 (USD $418) per week, inclusive of meals, utilities, Internet, telephone and the like.

ACCOMMODATION SERVICES At the moment though, housing for both international and local students can be found at Camperdown/Darlington, Cumberland, Camdem, Dubbo and Orange campuses and in areas nearby.

For university-owned accommodation, it is not exactly situated inside the campus but in the surrounding areas and within walking distance. Priority is given to the overseas first year students, particularly the younger ones. You’d be lucky if you’re 18 years old because you’re application will be given due consideration.

Anyone beyond this age better look somewhere else as it is highly unlikely that his application will be approved.

Among the accommodation overseas students should send their application to include Darlington House, University Terraced Housing and University-Owned Low Cost Housing. All have fully furnished bedrooms with common areas.

The average cost for this type of accommodation is between AUD $183 and $254 (USD $170 and $236) per week.

Student colleges affiliated with the university—such as the Mandelbaum House, Sancta Sophia College and St. An-

As on-campus accommodation can only house a fraction— approximately 5%—of the enrollees, the university makes up for it by setting up the Accommodation Services to help the students, especially those who are left with no choice but to live in a private rental place such as studio or private apartments.

So long as students are willing to spend an estimated rental cost of AUD $200-$400 (USD $186-$371) per week, then rental accommodation can be a great option minus the hassle of queuing up for applications.

Housing accommodation may be the one minor setback when studying in the University of Sydney, but this is more than made up for by the world-class education.

And all the more compensated when you go out and about and see why Sydney is Australia’s largest and most famous city.

As for an investor interested in student accommodation investments, however, the housing shortage represents opportunity. Add to that is the high gross return on investment which can be at 6.26% if apartments are fully rented out, according to the Global Property Guide.

© FROM TOP LEFT: REALITY-CHECK/FOTER; DDXC/WIKIMEDIA COMMONS; FROM BOTTOM LEFT SYDNEY UNI/FOTER

According to University of Sydney Vice Chancellor Michael Spence, the accommodation will be available to ‘both international and domestic students who seek a greater level of independence and responsibility within proximity of the university’s main campus’.

Among the planned features for the accommodation include single rooms with large common living and study space, sky lounges and gardens, communal kitchens, theatre, gym and music room. Indeed, not only would it address the on-campus housing shortage, but also provide the students with an extremely comfy place to live in.

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Internationally accommodating

With students travelling far and wide to access Australia’s world-class universities, there has been a necessary increase in demand for student accommodation.

By Tamara Schiess

TAMARA SCHIESS is a property investor who has also worked in many strategic, analytical and sales-type roles for major FMCG companies in the past. However, with a passion for property, she has bought, renovated, kept and sold many properties to date. Due to her experiences and difficulties in finding good quality managing agents for investment properties, Tamera created Property Boss.

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O

ne of Australia’s most highly soughtafter exports is tertiary education in a growing service sector – it annually contributes over AUD $10 billion (USD $9.2 billion) to the Australian economy. In fact, the number of international enrolments in Australian universities has more than doubled in the last decade.

However, there are a few important factors to consider when making a decision to invest in student accommodation, including limits to the capital growth, demand fluctuations and the liquidity of potential investments.

Almost all international students will be on the lookout for affordable and conveniently located accommodation while studying in Australia. As a result, there is a steady (and increasing) demand for student accommodation.

In addition, there are many domestic students moving from interstate or rural areas seeking highquality, purpose-built student accommodation such as the UniLodge and New College adjunct to the University of New South Wales, the University of Sydney and the University of Technology. These lodges are predominantly occupied by international students.

or selling their property to other clientele. This has several implications on the potential capital growth of the property, and the liquidity of the asset. Potential buyers and renters, such as couples and families, are less likely to buy or rent student accommodation, especially if it is surrounded by other student accommodation properties. When trying to sell the property, the market can undervalue the property due to its appeal to a limited scope of potential buyers and renters.

Demand for education driving growth

2 Further growth is anticipated in the education sector, primarily due to more international students choosing the Australian education system.

In the aftermath of the global financial crisis, the intake of university enrolments in Australia has not been adversely affected and, with emerging markets in Vietnam and the Philippines, there is further potential for growth.

The demand for education has proven to be stable and inelastic with great potential for future growth.

This makes investment in student accommodation attractive with above average rental yields. In comparison to properties in a similar geographic area, student accommodation is usually a relatively cheaper way to enter the property market while still making a fairly lucrative investment.

However, there are certain risks and rewards that should be considered.

RISKS 1 The demand for student accommodation comes from university students who are not long-term occupiers or owner-occupiers. As a consequence, capital growth can suffer, as other potential buyers are less likely to invest.

2 Properties that have been designated as student accommodation are often limited to that single purpose, precluding potential investors from leasing

3 The nature of student accommodation means that investors need to be prepared for the ongoing and continuous turnover of short-term leases, as well as vacancies over holiday periods.

4 Student tenants can attract higher maintenance costs through additional requirements, such as additional security and the need for furnished units.

In conjunction, there is a higher risk of students damaging property, which may also lead to higher maintenance costs.

5 Finding property managers can be an arduous task, with many refusing to manage these types of properties. This directly affects the attractiveness of investing in student accommodation and decreases demand.

REWARDS 1 On average, student accommodation attracts higher yields compared to similar properties in the same areas of Australia. The short-term gains can make it quite lucrative.

3 Vacancy rates are historically low in Australia’s capital cities, and the lack of accommodation for students presents an opportunity for investors to capitalise on the growth of the education sector.

In deciding whether to invest in the student accommodation market, setting out clear goals is fundamental. The short-term benefits of a better cash flow and stronger yields can help make the property a profitable venture. However, if the investment is contingent on long-term capital growth, student accommodation may not provide a significant return on reselling, and building equity in these properties is a tall order.

If investing for the long-term, units or houses within close proximity to universities, which can be leased not only to students but also to young singles and couples working in nearby city centers, may be a preferred option.

Student accommodation can provide a consistent and worthwhile income and can be a great asset in an investment portfolio as long as the investment strategy is sound.

FRANCE

‘Logements universitaires’ —

student accommodation in France French university students currently enjoy rent subsidies provided by the government. It is a huge leap from a few centuries back when high rent charged on students almost led to a civil war. By Vittorio Hernandez

Demand vs. supply

In large French cities like Paris, student-housing demand is always higher than supply. © CARLES TOMAS MARTI/FLICKR

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M

ay 1968 is a landmark period in French modern history.

Local university students were at the forefront of a general unrest over a wide range of conditions, from the reorganisation of the University of Paris to its restrictions to general social issues.

A series of student occupation protests started the events, followed by general work strikes in which 11 million workers (or 22% of France’s population at that time) participated.

It almost caused the collapse of the government of President Charles de Gaulle, but it led to major national reforms, beginning with new parliamentary elections, which resulted in changes that university students today still enjoy.

One such benefit is that all French university students who rent rooms or flats are entitled to student accommodation financial help (ALE). The amount of assistance varies, but on average it is equivalent to 25% of their rent.

The situation of the French university student is both unique and similar to their counterparts in other Western nations, such

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as the UK and US. The bulk of students attend a local university or college, so there are fewer who need rental units. Many university students, even for those who live temporarily near the campus, go home for the weekend.

However, despite this situation – with a total of 2.2 million students in universities – the accommodation market for students echoes the situation in British universities where there is a chronic housing shortage.

One difference, though, is that France is more organised by providing the ALE and putting in place the CROUS (Centre Regional des Oeuvres Universitates) in all universities. The CROUS is tasked with providing students assistance on accommodation.

To understand better the issues concerning student accommodation in French universities, Property Life took a closer look at two of the biggest universities in France.

German origin

The University of Stasbourg traces its origins to a German language institution established in 1631.

University of Paris The University of Paris is one of the earliest universities to be established in Europe, sometime between 1160 and 1250.

Proof of its age is that Pope Innocent III, who became pontiff at the age of 37, is an alumnus of the University of Paris. He graduated in 1182 at the age of 21.

Referred to as the Sorbonne, the university has gone through several changes, including being divided in 1970 into 13 autonomous universities, all called University of Paris with Roman numeral designations.

Until now, reorganisations are still taking place as most of these universities are joined or are in the process of forming new groups, often taking the legal form of a Center for Research and Higher Education (Pole de Recherche et d’Enseignement Superiur).

Paris I, or more known now as the Pantheon-Sorbonne University, is one of the largest universities in the country with about 40,000 students spread in 14 teaching and research departments and five institutes.

The focus of the university is on humanities, law and economics. In the global 2011 QS World University Rankings, Paris I was in 213th place and ranked 34th for arts and humanities and 42nd for social sciences.

Paris I shares some of the prestigious university buildings in France with other 12 other Universities of Paris units. Like the situation in major British universities, the University of Paris is spread within Paris, more known as the City of Light.

© FROM TOP: JASTROW/WIKIMEDIA COMMONS; CARLES TOMAS MARTI/FLICKR. OPPOSITE: JONATHAN MARTZ/WIKIMEDIA COMMONS

A CASE OF SUPPLY VS. DEMAND And similar to the situation in other French universities, demand is higher than available accommodation units run by the university, particularly at its CROUS residences on rue du Colonel Avia and the Cite Internationale Universitaire de Paris on 1 Avenue Pierre Masse.

Since the university is in the capital city, rentals are higher than in universities in other French cities.

Students here pay from EUR €440 to EUR €620 (USD $574 to USD $861) monthly, based on the size of their room or studio. Each room has a desk, office chair, bed and built-in wardrobe, but excludes pillows, blankets and dishes. A security deposit of EUR €400 (USD $522) is also required.

As expected, rents in private accommodations are pricier. The website gfi-students. com lists the cheapest room at Guyancourt at GBP £368 (USD $561), while the most expensive on its list is at GBP £630 (USD $960), located at XIII Rive Gauche.

In a guide prepared by the British Council for Brits who want to study in France, the rents for a Paris accommodation listed started at EUR €350 to EUR €400 (USD $457 to USD $522) a month for living with a family and all the way up to EUR €600 to EUR €1,100 plus (USD $783 to USD $1,436 plus) for a studio or apartment for one, which is often very small in size.

The British Council guide added that students have the option of using the services of accommodation agencies, which are typically rather expensive options.

Although the university has been expanding at an unprecedented rate and built on or bought almost 20 new sites in Paris and nearby suburbs, most of these, such as the New International Relations Building, are for academic or administrative use.

In spite of demand, there are no indicators that the university plans to build more student accommodations.

Centuries old

Besides being one of the oldest universities in Europe, it also has the largest student population at 40,000.

University of Strasbourg Although the university traces its beginnings to Universitat Strasburg, a German language institution established in 1631, it formally became the University of Strasbourg only in 2009. It was actually the result of the merger of the Louis Pasteur University, Marc Bloch University and Robert Schuman University that were divided in the 1970s into three separate institutions from the German language academy.

Located in Strasbourg, Alsace, the university is the second largest in France in terms of enrollment with 43,000 students.

The campus occupies a large part of the city centre between the Cite Administrative, Esplanade and Gallia bus-tram stations.

Roughly, 35% of its students are enrolled in arts, literature, languages, social studies and humanities courses, another 27% in law, economics and management courses and the rest in science and technologies and health courses.

The university describes itself as drawing its strengths and assets from active involvement in virtually every discipline comprising the current body of knowledge.

Ranked 41st overall in the World Universities Ranking for 2012-13, Strasbourg is considered one of the leading universities in Europe and a strong challenger in international competition.

Given its international reputation, the university is a magnet for foreign students, who comprise almost 20% of the student population.

Due to their significant number, the university’s CROUS allocates 30% of its rooms, one- and two-room flats to foreign enrollees and the 70% is for locals. The room rates, which have shared or en suite bathrooms, range in price from EUR €125 (USD $163) to EUR €180 (USD $235) monthly.

Both foreign and local students, according to the handbook prepared for new enrollees in the university, are expected to have a budget of about EUR €1,800 (USD $2,351) on their first month to cover rent of EUR €300 (USD $392), security deposit of EUR €600 (USD $784), registration fees of EUR €150 (USD $196), social security in France of EUR €180 (USD $235) and extra student insurance between EUR €61 (USD $80) and EUR €281 (USD $367).

Other expenses with varying amounts include telephone, electricity, transport and food.

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PRIVATE STUDENT ACCOMMODATION

ENTER WITH CAUTION Investors who are considering entering the market are advised to be cautious because the French housing market is in trouble again due to record-high unemployment rate and the budget deficit.

The latest report of Global Property Guide in April 2013 said that the French housing market started to slow down in 2011 as house prices went up by just 3.66%, or only 1.19% with inflation adjusted, while demand continues to wane.

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Private flats

Private accommodation for French students (top) along Edelseider Avenue. Students who stay here may use public buses (left) to reach the campus.

With the French economy projected to grow by a measly 0.1% in 2013, the country’s housing market is expected to remain depressed throughout the year.

Investors are hesitant to enter the market because of rent controls that allow increases only once a year, capped by the National Institute of Statistics and Economic Studies (INSEE) rental index.

In Paris, rental yields range from 3.26% to 3.85%, considered unsatisfactory, although rents are relatively stable, averaging EUR €22.40 (USD $29.26) per square metre in Paris.

Given this situation, it seems more burden is on the shoulder of CROUS to respond to the housing needs of university students in France.

According to its website, CROUS has plans to expand university residences that currently take in only 13% of students. The aim is to double the number of student housing by 2020.

Given its limited resources, such efforts would still need the private sector to provide additional rooms and flats. Unfortunately, the current situation is not conducive to developers and investors to enter the market – at least until the end of 2013.

© FROM TOP: EDELSEIDER, RUDLOFF/WIKIMEDIA COMMONS

If the student could not be accommodated in CROUS facilities, he or she has the option to find rental units run privately. Since the university is near the city centre, finding private accommodation is not that difficult with adverts, student mutual companies, estate agents and CROUS, which provide assistance. Nevertheless, the rooms or flats are more expensive.

A studio would cost between EUR €400 (USD $523) and EUR €450 (USD $588).

The relative profitability of renting out rooms to students is evident in the number of available accommodation in the city centre, such as the Resid’ Garden, which has 140 furnished apartments, and the Appart’Hotel Victoria Garden, which is located close to the historic centre and the TGV station of Strasbourg, and the Victoria Garden Suites, also near the rail station.

JAPAN

Best time for student accommodation investment is now

The government’s zero illiteracy programme plus the growth of foreign students is leading to an acute housing shortage for those pursuing a university degree in Japan.

By Jonalyn Fortuno

© GRILLED AHI/FLICKR

N

estled in Eastern Asia is a shimaguni (island-country), which long ago has isolated itself from the rest of the world in an attempt to bring prosperity through improved domestic trade, centralised power and political order. True to its name as the ‘Land of the Rising Sun’, Japan has eventually emerged as a global power when it opened itself to the world.

For decades, Japan enjoyed a thriving economy largely drawn from the Edo period and nurtured by the succeeding eras. And because its economic strength loomed large, Japan has elevated its stature in the global vista as the third-largest economy after China and the US. But had it not been severely affected by the global recession, it would not have recently lost its place to China as the second-largest economy.

Although Japan’s stature has moved down one notch, this country is still the very image of economic power, technical superiority, and political stability despite the few stumbling blocks hurled along the way. But that would not have been possible without an excellent education on the backdrop.

Indeed, education in Japan is reputed to be one of the best, thanks to its rigorous curriculum as well as the government’s effort to ensure that the country remains to be at zero illiteracy. This has been achieved through compulsory schooling for elementary and lower secondary levels.

In addition, education is also widely considered as personal advancements as well as determinant of one’s social stature. Thus, students are keen to pursue higher education despite the academic ordeal that they have to go through before getting in to a university. The widely used saying Yontou-goraku (which means four-pass, five-fail, referring to the hours of sleep that one should get to pass the exam) exactly describes how grueling the university examination is.

But considering that Japan’s higher education is comparable in scale to that of European countries, the strenuous screening process is not much of a surprise. More so for a country that has three prestigious universities in the top 50 of Times World University Rankings, it is highly anticipated that admission would not be possible unless students burn the midnight oil or sleep only four hours a day (as Yontougoraku says).

Proof that the students really endeavour to climb into higher education is the large university population, which is reported to reach roughly 3.9 million.

Moreover, as the educational standard in Japan has achieved an international level, more foreign students are scrambling to get into Japanese universities.

A recent report from the Japan Student Services Organisation (JSSO) showed that in 2012 alone, the number of foreign enrollees was at 137,000+. This figure is expected to double by 2020 as the country aims to ‘promote the quick globalisation of universities by taking every step possible’, through its programme Global 30.

The government’s interest to accelerate the global inflow of international students is in part due to the growing demand of Japanese firms for global human resource.

According to Hitomi Okazaki, editorin-chief of the Rikunabi website, while big companies expand overseas, foreign students are in demand because of their familiarity in both Japanese and foreign cultures and languages.

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The Japan Times also wrote that the survey commissioned by a Tokyo-based recruitment consulting firm, Disco Inc., in May 2012 showed that 25.9% of companies plan to hire foreign students this 2013, up 5% from the previous year.

While it is true that global flow of international students bodes well for the country’s workforce, this may post a problem in terms of university housing accommodation, both for local and foreign students.

In the report of JSSO, it was noted that the international student housing set up by universities could only accommodate as many as 18,759, while those established by the public corporations can house at least 5, 247 foreign students. General student housing, on the other hand, is only limited for 5,934 students, both local and foreign.

Considering that the availability of oncampus housing is not exactly proportional to the number of foreign enrollees per year, alternative options are apartments and boardinghouses/dormitories. The latter is the most preferred option of the students as it is much cheaper compared to apartments.

As most universities rely on the private sector to provide the students with livable housing accommodation, this opens a wide room for investment. After all, Japan remains the second biggest real estate market after US despite being mired by a series of problems such as the worldwide recession, speculative bubble, and environmental catastrophes in epic proportions, to name a few. The nation’s real estate market has indeed weathered the worst and yet still managed to get back on business fast.

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Dispersed campus

The university is spread through Tokyo's districts, although the main campus, Hongo, is found in a special ward of Tokyo. © KIMTARO/FLICKR

Japan may still be in the recovery period, but the Nomura Research Institute reported that the economic stimulus measures, which form part in the three arrows of ‘Abenomics’, have boosted the real estate market. And in the housing sector, it is the rental apartments that saw a fast growth.

Housing shortage in universities is good news for investors, but rental apartments setting the market trend just makes it even better.

That being said, Property Life bares the top three universities that will surely send the investors flying to Japan to snap up rental properties just in time for start of the academic year.

University of Tokyo Sprawled in the most populous metropolitan in the world is a former imperial university conceived during the Meiji era, the turning point of modern education in Japan.

Locally known as Todai, the University of Tokyo is the first of Japan’s National Seven Universities and the most desired

institution in the nation. Why not? It’s after all the highest-ranking university in the whole of Asia. Aside from that, it also claimed the 30th spot in the QS World University Rankings.

The university, however, is not merged in the city centre because its campuses are dispersed around the Tokyo districts. Its main site, the Hongo campus, is located in Bunkyo, one of the special wards of Tokyo. Although not situated at the center of metropolitan, Todai did not fall short from student’s expectations in terms of fostering a rich and varied academic environment while providing a solid ground for specialised knowledge. More so, the courses offered covered almost all academic disciplines in both undergraduate and graduate levels and heavy emphasis is given to research.

Time and again, Todai has never failed to demonstrate why it is a world-class center for research. Proof of how its researchers excelled in the field is the regular appearance in reputed international journals and several Nobel prizes received for Physics, Literature and Peace.

One admirable characteristic of Todai’s education is that it maintains close ties with society by encouraging the students to take part in volunteer activities, internships and other off-campus experiences.

Another is its dedication to attract more overseas enrollees and line up with international standards.

Todai even went as far as proposing a new academic calendar in the form of four-quarter system designed to encour-

age more foreign students to enroll in the university. At present, the number of overseas enrollees in the university is estimated to be at 2,100. On the other hand, overall student body in Todai is projected to be at 30,000.

Perhaps, the only setback when studying in Todai is its limited housing accommodation. It has about 643 dormitory rooms provided for overseas students and researchers who often come to the university. These rooms are available at international lodges in Shirokanedai, Komaba, Kashiwa and the International Halls of Residence in Mitaka and Toshima, which also house Japanese students.

Availing these rooms, though, is not as easy as calling the office and have a room reserved. Students would have to file an application that is subject to approval.

Unfortunately, not all applications are granted because only 15% to 30% applicants on the average are able to secure a room in Todai accommodation. Besides this, there is also a maximum length of stay— like in Kashiwa Lodge for instance, which only allows a one-year stay — after which the students are requested to transfer to a private accommodation.

Other lodges that implement a oneyear tenacity period include Komaba Lodge Main, Komaba Lodge Annex, and Shiro-

kanedai. Nonetheless, these lodges give students plenty of choices because they offer single, couple and family rooms. Each room is equipped with basic necessities such as mini kitchen, bath unit, closet, refrigerator, bed and whatnot. Internet connection is also available but not included in the accommodation fee which has a minimum cost of JPY ¥48,900 (USD $484) per month.

Although the university eyes to ‘establish a university-wide housing office to provide and improve high-standard accommodation,’ as stipulated in its Action Scenarios for Priority Areas, it has not laid out a concrete plan just yet as to the scale of international guesthouses it plans to build. Until such a time, the students’ only option is the private sector as they would surely be able to provide housing accommodation anytime, anywhere but at the right price.

Now, it should be noted that Tokyo is notoriously known for being one of the most expensive cities to live in. Housing prices don’t come cheap and living at a minimal cost isn’t exactly minimal by standard. Students who want to stay in an apartment should be willing to splurge at least JPY ¥90,000 (USD $900) a month for a onebedroom apartment near Komaba or Hongo campus, while housing for two costs JPY ¥150,000 (USD $1,501). Housing near the

Top in Asia

The University of Tokyo is the highest-ranking university in Asia. © XIIIIFROM TOKYO/WIKIMEDIA COMMONS

Kashiwa campus is much cheaper though; a single room is at JPY ¥ 60,000 (USD $594), while a unit for two only costs JPY ¥ 80,000 (USD $792) per month.

Indeed, prices depend on the location.

Accordingly, the farther the apartment is from the metropolitan, the cheaper the rent that one could get. But to, at least, lessen the burden of foreign students who are compelled to look for an off-campus housing, Todai set up a Housing Office’s website, which is very helpful because not only is it efficient in terms of finding privately operated apartments near the campus or in the districts of Tokyo but also provides useful tips for firsttimers when it comes to Japan’s apartment rental system.

The students could also seek assistance from the University of Tokyo CO-OP to help them with home arrangements because the latter could not contact the landlords directly to ask for vacant rooms. It should be noted that Japanese landlords usually rely on real estate agencies or property management companies to oversee important matters such as finding tenants, negotiating and signing lease contracts and managing the building.

Staying in a Japanese-owned apartment is really very different from a typical apartment partly because of the strict housing conditions. For one thing, students are required to have a guarantor who, as much as possible, should be a Japanese national. The other is that the housing rules may come as a little bit of culture shock for non-Japanese nationals.

When it comes to expenses, there are other costs that can really blow the student’s budget such as shikikin (deposit), reikin (key money), hokenryoo (it’s insurance which tenants are sometimes required to sign up, costing them about JPY ¥10,000 yen to JPY ¥20,000 yen [USD $98 to USD $197]).

But these housing conditions may be favourable for investors. Aside from the bundles of yen that they’ll be receiving once the students move in, they can also expect a rental yield between 4.46% to 6.35% and average return of 8.1%.

Given these numbers, Minato Asset Management Co. Ltd. President Hirokazu Mukai said, ‘Now is a good time to invest in property here [in Tokyo] as the Japanese government and the Bank of Japan have set a clear inflation target of 2%, and there is a rising expectation of inflation among investors’.

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One common trait of Japan’s top universities is that it comes with a high price tag. For instance, in Kyoto University, which is the second-oldest university in Japan founded in 1897, the average living monthly expenses for international students is around JPY ¥133,000 (USD $1,332).

But then again, studying in the once imperial university in Kyoto is worth every yen. Not only did it rank in 35th place of the QS World University Rankings, but it also holds the balance between tradition and innovation. It explains why many of its graduates excel in their respective fields, thanks to

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the university’s ideal environment that enables students of all disciplines to succeed.

Kyoto University, or Kyodai, is also noted for promoting academic freedom. Thus, its academic style is largely characterised by free-thinking, self-reliance and dialogue. As students are highly motivated to pursue research study in topics in line with their own personal interests, chances are they would

Kyoto University

With more international students, there isn't enough room in the four university-run housing facilities.

really excel. Such is the case of seven of its alumni who received Nobel prizes in fundamental natural science fields.

As the second-best institute in Japan after Todai, Kyodai offers a wide range of academic fields. To date, it hosts 17 graduate schools, 10 faculties, 14 research institutes and 27 education and research centers and facilities. Additionally, it has about 22,000 students enrolled in its undergraduate and graduate programs.

Along with Todai, Kyodai also strives to attract more international students under its tutelage. Its effort can be reflected in the number of international academic exchange programs it has forged with dif-

© BOTTOM: ITAMENDELSON, LORDCOLUS, JUN SEITA/FLICKR

Kyoto University

© FROM TOP: ROYHALZENSKI, MASAYUKI (YUKI)/KAWAGISHI WIKIMEDIA COMMONS

ferent institutions around the globe. Kyodai has also set up the necessary facilities to support international students.

But the housing accommodation is an entirely different story. Despite the four housing facilities (known as the Kyoto University International Houses) available for international students and researchers, the institution could barely accommodate the approximately 1,500 overseas enrollees. And those who are lucky enough to get rooms, at a minimum monthly cost of JPY ¥ 11,700 (USD $115), wouldn’t be as lucky after a year because that’s when the tenancy period ends. And these houses (located at Shugakuin, Uji, Ohbaku and Misasagi) do not give extensions.

Nevertheless, foreign students can apply for accommodation in Kyoto University’s Student Dormitories namely Yoshida-Ryo, Kumano-Ryo, Joshi-Ryo and MuromachiRyo, as they are open to both domestic and overseas enrollees.

But then again, many international students want privacy and that makes apartments a popular choice. Students could get a decent space at JPY ¥45,000 (USD $450) per month, which is considerably cheaper than that of Tokyo’s. But the difference ends there because Kyodai students are not exempt from the customary shikikin, reikin and hokenryoo.

Finding an apartment requires a lot of legwork though. Hence, overseas students should enlist the help of Kyoto University CO-OP or real estate agencies before the academic year kicks off.

However, if the students want to explore Kyoto via house hunting, then it’s worth checking the districts in northern Kyoto.

According to BBC Travel, districts such as ‘Iwakura, Kitayama, Shimogamo and Demachiyanagi are very popular, in part, because their distance from the city centre makes them less expensive.’ Although at the outskirts of Kyoto City, these areas are near public transport, so students wouldn’t have to worry about coming in late for the first subject.

BBC Travel also noted that the 20 sqm one-bedroom unit is priced between JPY ¥50,000 (USD $494) and JPY ¥60,000 (USD $592). As for apartments, units with more square footage could go up as much as JPY ¥110,000 (USD $1,086).

Levia Corporation said that the rental business is likely to thrive in Kyoto because of the high demand, thanks to the number of students who come to study in this part.

Modern and old

Osaka University’s Gakuin campus (top) and student hall (bottom). Modern designs with traces back to 1724.

One of the many reasons why students are attracted to Kyoto is that it is a treasure trove of cultural assets, ranging from historical temples, imperial villas, palaces and other landmarks recognised by UNESCO as World Heritage Sites. This city is the remnant of its majestic history dating back from the Heian aristocracy through to the Edo period where it flourished as the capital city.

Being the cultural epicentre of Japan has also done wonders to Kyoto’s property market. According to Overseas Living, it helps that the property here is not as pricey as in Tokyo and it caters as well to all types of home seekers.

On top of that, the gross rental yield ranges from 6.20% to 8.27%, which is definitely much higher than Tokyo. That being said, investors should really consider participating in Kyoto’s buzzing market activity.

And they will be interested to know that Kyodai is one of those universities that greatly support the Global 30 Project, which set the goal of attracting between 3,000 and 8,000 foreign students annually.

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The most interesting trait of Japan’s top three universities, though, is that they all got Nobel Laureates. Although compared to the other two, Osaka University has the least number of laurels as it only received one Nobel Prize award in Physics.

But that’s not a drawback at all. For 82 years, Osaka University, or Handai, continue to be one of the top teaching and research universities in Japan. And just recently, it landed on the 50th spot of the QS World University Rankings.

Although it was built in 1931, its academic traditions reach back much further that its inception as an imperial university.

Accordingly, its Handai roots is traced back to Kaitokudo (Edo-period school built in 1724 for local citizens) while its academic orientation for science and medicine is said to be based on Tekijuku (a school for samu-

rai established in 1838.) Perhaps, this origin partly explains why Handai created the mantra ‘Live Locally, Grow Globally’.

And true to its mantra, Handai has tapped numerous international universities across the world for academic exchange programmes. In 2011, at least 91 universities have agreed to swap students with Handai.

Handai’s dedication to further its status as a world-class institution can be gauged when it went through a merger with the Osaka University of Foreign Studies in October 1, 2007. Expectedly, the university has vastly grown that it now encompasses 11 schools, 16 graduate achools, 5 research institutes, 2 hospitals, 4 libraries, 21 jointuse facilities, 3 national joint-use facilities, 4 overseas centres for education and research, the Osaka University Nakanoshima Centre, and other facilities designed to further the knowledge of its students.

Osaka University A 2007 merger with the Osaka University of Foreign Studies resulted in a campus expansion to 11 schools, 16 graduate schools and five research institutions.

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Students flock in numbers to Handai to get a world-class quality of education with extensive facilities to match. At the moment, the university is home to at least 24,750 local students and 1,940 international students.

It also helps that Handai’s three core campuses, namely Suita, Toyonaka and Minoh, are strategically located in the multicultural city of Osaka, the second-largest metropolitan area in Japan. When one says Osaka, images of delightful cuisine, shopping hubs, and, yes, bustling nightlife would certainly follow suit.

Studying in Osaka University is less stressful because after hitting all the books, students can definitely eat, drink and be merry at the metropolitan. Had it not been for the limited student housing – considered by many as the perennial problem of Japanese universities – Handai would have been without any flaw.

Just like Kyodai and Todai, Handai is also short in providing student housing.

Aside from that, the tenancy period is usually only a year, so students should have to find another place for residence before the year ends.

To make up for this, the university set up a Global Campus Net Osaka, which deals directly with real estate companies in terms of housing arrangements for international students.

It can be noted that Osaka, being a commercial and industrial hub, holds potential for lucrative investment. The Urban Land Institute in Washington even regarded the city as ‘offering some of the top prospects for investment and development.’

When it comes to apartments, prices range from JPY ¥20 million to JPY ¥400 million or so. Also, the Japan Property Channel reported that the average monthly rate in Osaka in May is at JPY ¥2,090 per square metre which is 7% higher than last year.

As for rental returns, it could go around as much as JPY ¥80,000 (USD $791) to JPY ¥100,000 (USD $988) per month. Not bad at all for investors given the numerous students who are in restless pursuit of a comfy place to live in while they’re at Handai.

To wrap it all up, investing in Japan’s housing accommodation is indeed an excellent venture. Not only is it timely to the nation’s Global 30 programme, but also a great way to diversify one’s portfolio while generating positive monthly cash flow. And with thousands of students flocking into these top universities, investors might as well do the math and hatch investment plans.

© KIRAKIRAMEISTER/WIKIMEDIA COMMONS

Osaka University

CANADA

Sprawling campuses and well-organised accommodation system make learning more conducive

The youngish universities in Canada provide a real campus experience for about 100,000 students in its two largest educational institutions. By Vittorio Hernandez

B

eing a next-door neighbor to the United States, Canada has a lot in common with the world’s most powerful economy in terms of quality education.

Its 92 universities have about 1.2 million undergraduate students spread in 10 Canadian provinces and territories. However, majority of these universities have relatively small enrollment, with student population just a few hundreds or thousands.

In the case of the larger universities, being situated in a first-world country, the schools as well as nearby communities have sufficient means to provide shelter to thousands of local and foreign students who need to stay in the area for the next four years.

A well-organised accommodation system characterises large Canadian universities, such as the University of Toronto and York University, both found in the province of Ontario, and are indicators of how well-

Hart House

The century-old Hart House is a campus hangout for University of Toronto students.

run these academic institutions are. Nevertheless, the universities cannot house their entire student populations, leaving investment opportunities with private accommodation.

Unlike major British and French universities, Canadian universities are found in sprawling campuses - and are not part of the city centre.

With such conducive learning environment, it is not surprising that these two universities are home to major scientific discoveries such as insulin and stem cell research for the University of Toronto and for York University, the design of space research instruments and applications used by NASA.

Between the two universities, the University of Toronto, established in 1827, is the older one. It is the third-largest university in terms of student population, with 33,000 plus enrollees.

Among the proofs of the university’s academic excellence is its 21st place in the Times Higher Education World University Rankings of 2012. In another list,

48

Š UNIVERSITY OF TORONTO

University of Toronto

Different campuses

© FROM TOP: MANUMENAL/FLICKR; UNIVERSITY OF TORONTO

University of Toronto has three campuses: Woodsworth College (top), St. George, and Mississauga (bottom).

the Academic Ranking of World Universities of 2012, it placed 27th. But in the two lists, the University of Toronto is number 1 among Canadian universities.

Maclean’s magazine ranked the university as Canada’s top medical-doctoral university for 11 straight years from 1994 to 2004.

However, the strongest point of the University is its research, which is the result of it having the biggest yearly research budget of any Canadian university at CAD $878.725 million (USD $835.856) in 210.

The bulk of the funds come from the federal government.

The university has three campuses – St. George, Mississauga and Scarborough.

A good gauge to see how the university administration values its students is the almost century-old Hart House. The neoGothic student activity centre, opened in 1919, help builds the community spirit among University of Toronto students.

In this centre, the student could read in the library, dine casually or formally, get a haircut, visit an art gallery, watch a play, listen to a concert, debate, play billiards, swim and find a place to study – all in just on building.

At the end of the day, the students who are housed in the university-operated accommodations go to their rooms in residence halls found at a different area of the campus. The freshmen, who have priority in accommodation, are assigned at Innis, New, St. Michael’s, Trinity, University, Victoria and Woodsworth Collges.

Those who prefer all-women halls are housed in Annesley Hall and Loretto College of St. Michael’s College.

The campus residences could only accommodate 6,400 students, including the exclusive dorms for graduate and theology students. That leaves the upper-classmen the choice of renting in the nearby neighbourhoods of The Annex and Hardbord Village, the two areas that earned the reputation of being a distinct student quarter enclave.

49

At the Mississauga campus, the total cost of accommodation for first year students staying at the Leacock Lane and Scgrekberwood townhouses a year is CAD $7,544 (USD $7,170), which covers laundry, Internet and other fees.

Upper-class students in the same townhouses are charged CAD $7,349 (USD $6,985), while those who live at the Roy Ivor Hall and Erindale Hall apartments and in premium two-bedroom units at Leacock Lane and MaGrath have to pay CAD $8,166 (USD $7,765) yearly.

Those who opt could rent rooms in fraternity houses and student housing cooperatives where the residents enjoy lower rent in exchange for having housekeeping duties.

In 2004, to further accommodate more students inside the campus, the university bought a nearby hotel and converted it into the Chestnut Residence to accommodate students from all colleges and faculties.

50

Students who rent rooms at Hardbord Village and Annex have to shell out between CAD $700 to $850 (USD $666 to $808) monthly for a single room.

York University Also located in Toronto, Ontario, York University is Canada’s third-largest university in terms of campus size with a student population of 55,000 spread in 11 faculties.

However, York is much younger since it was established only in 1959.

Dorm rates

Housing at the University of Toronto (top) is around CAD $7,500/year (USD $7,300).

York University's mall entrace (bottom left) and student centre (bottom right).

In the 2011-12 Times Higher Education World University Rankings, York placed 276-300 globally, while among Canadian universities it is ranked 16-17. In another list, the 2011 QS World University Rankings, it was on 364th placed.

Among the recognised strengths of the York University are its law, teacher education and business programmes.

The bulk of its students attend class at the Keele Campus found at the north of Toronto City, bordering York Region. By campus size, Keele is the largest post-secondary campus in Canada at 457 acres. A smaller number of York students attend classes at its Glendon campus on Bayview Avenue in North Toronto and in satellite facilities in Toronto.

Although many of York University’s students are from the Greater Toronto Area, a significant number are from other Canadian provinces and overseas.

Its students who could be accommodated in campus-based colleges are spread in nine colleges, namely Calumet, Founders, Glendon, McLaughlin, New College, Norman Bethune, Stong, Vanier and Winters.

Freshmen students are given priority at the campus accommodations, while upperyear students and post-graduate students often find accommodation at the Village at York.

© OPPOSITE FROM TOP: BOBISTRAVELING/FLICKR; BOTTOM FROM RIGHT: THEONLYSILENTBOB, MAGNUS MANSKE/WIKIMEDIA COMMONS

The area, because of its predominantly student population, has attracted the attention of residents because of the large student parties that are often accompanied by a noise level higher than what some residents appreciate.

However, despite the occasional disagreements between students and town residents, both groups are represented in the Village at York Town and Gown Committee, the York Federation of Students, Toronto Police Service, Toronto Fire Service and other major municipal agencies and local councillors’ office to address their day-today concerns.

Students housed in the university-run accommodation have the choice of a single or double occupancy dormitory room or the suite-style room.

The dorm rooms come with a bed, dresser, closet, desk, chair, bed linen, towels and soap. Residents have access to laundry facilities, but not landlines, although they could bring in mobile phones. Cooking is also not allowed.

For the academic year 2013-14, students at traditional rooms in Vanier, Tatham, Winters, Stong and Bethune Residences are charged CAD $5,397 (USD $5,135) a year for a single room and CAD $4,702 (USD $4,474) for a double room. The rates are about CAD $200 (USD $190) higher if they opt to live in Winters Residence suites.

If they choose to live in the Calumet Residence’s 6-person suites, Bethune Residence’s 4-person suite or 12-person suite, or

Established 1959

York University is much younger than the University of Toronto, something reflected in the modern architecture. © ROBBOPHOTOS/FLICKR

Pond Residence’s 2-person suite, the rent ranges from CAD $5,481 (USD $5,215) to CAD $6,969 (USD $6,631).

Across all types of rooms and different residences at Keele, there is a fixed CAD $80 (USD $76) Residence Life Fee and a deposit of CAD $200 (USD $190).

A meal plan in mandatory for students lodged in traditional rooms at Vanier, Tatham, Winters, Stong and Bethuna Residences and in suites of Wintes. However, meal plan is optional for the larger suite occupants of the Calumet, Bethune and Pond Residences.

For those who prefer to live at the Village at York, room rates are usually CAD $400 to $500 (USD $380 to $476), while a two-bedroom apartment would cost around CAD $1,100 (USD $1,046) monthly.

NEW INVESTMENT DESTINATION These numbers show that renting rooms, whether it is a university-operated facility or a home with spare spaces, is a profitable venture.

Although the Canadian Real Estate Magazine reported that Toronto, where the two universities are located, suffered a onethird drop in rental rates in 2011, the area has recovered and vacancies are down 1.4% across the metropolitan area. Rents for studios, the best performer, rose 5.4% to CAD $819 (USD $) a month, while those of oneand two-bedroom units went up at inflation rates to CAD $977 (USD $) and CAD $1,148 (USD $), respectively.

Businessday Online, citing the latest report, said that because of yearly rental yield between 5% and 8% and a return on investment of 20% to 30% over 4 to 5 years make Canada the new investment destination.

Abdul Rahman Kadiri, CEO of ArkGold Properties, explained the good rates of rental yields and return on investments in Canada to the country’s property market being a mature market.

Overall, the Canadian property market is growing because of the stable national economy with the country enjoying yearly GDP growth of 7%, Kadiri said.

Based on these numbers, meaning the growth of the student accommodation sector and improved standing of Canadian universities in global lists, it only goes to show that investment in human capital in the country has not gone to waste.

Developers and investors, by helping fill in a need for good accommodation among Canadian students, are at the same time benefitting by enjoying one of the best rental yield rates in the world.

51

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FEATURE

Campus

A U G U S T — S E P T E M B ER 2013

future

© CHMEE2/WIKIMEDIA COMMONS

of the

The pioneer of online education will not replace bricks-and-mortar campuses, meaning your student accommodation investment is a safe bet for the future.

Open University simply makes education available to segments of the global population once unreachable.

By Vittorio Hernandez

T

he future has arrived, insofar as the education sector is concerned, based on the growing number of students who acquire their college degrees without attending lectures in conventional classrooms. Welcome the age of the Open University.

The widespread use of information technology, more affordable cost of computers, and global connectivity gave rise to the concept of the open university, pioneered in the UK. Yet the best example, based on the sheer number of enrollees alone, is India’s Indira Gandhi National Open University (IGNOU). With 3.5 million online students, IGNOU is the largest university in the world when it comes to student population.

Largest in the UK

England's Open University has a student population of 250,000. © CHMEE2/WIKIMEDIA COMMONS

It is about the same size as the national population of either Mauritania or Moldova, and slightly bigger than Kuwait.

And it accounts for about 58% of the six million university students in all of India.

The idea caught early enough in other countries. Four of the 20 largest universities in the world by student population are open universities. In addition to the IGNOU, the Allama Iqbal Open University in Pakistan (1.8 million students), the

Bangladesh Open University (650,000 students) and the Andra Pradesh Open University in India (450,000 students) are a few good examples.

A common thread among these four open universities is that they are all located in South Asia, in the three neighbouring nations characterised by poverty, large populations, lack of infrastructure and the relatively high rate of computer literacy – creating a perfect recipe for a successful Open University system.

Although the idea originated from the West when England’s Open University started in 1969, the sheer volume of young people in Asia yearning for a Western education fostered the concept in the East.

Indira Gandhi National Open University India’s IGNOU was established to provide education across the distance and via an education open to all, especially to the disadvantaged segments of the Indian society who could not otherwise afford to go to a university.

53

FEATURE A UGUST — SEPTEM BER 2013

A study by the International Comparative Higher Education Finance and Accessibility Project found that the yearly cost of a college education in India in 2001-02 started at INR 9,847 rupee (USD $836 based on current exchange rates) for students enrolled in a public central university and reached all the way to INR 17,517 rupee (USD $1,487) for those in a private college.

Tuition and other school fees actually comprise between 10% and 13% of the total cost, while the remaining 87% and 90% are spent on lodging, food, transportation and other personal expenses. Accommodation accounts for 4% to 17%, which goes to show how much parents of the 3.5 million students enrolled at the IGNOU are saving by having their sons and daughters stay at home while pursuing a university degree.

Since the study is at least 10 years old, the costs for both tuition and living expenses surely have escalated several times over. But the percentage share of the living expenses likely have not changed significantly.

In comparison, the current tuition fee at IGNOU for a semester is INR 5,000 rupee (USD $83) for a Certificate in Teaching of English course, while it triples to INR 15,000 rupee (USD $250) for a Bachelor’s degree in Education.

Campus-based students at the University of Delhi enrolled in Commerce, History or Political Science pay a persemester fee of INR 4,610 rupee (USD $76.83), which is almost the same as that of the online student at IGNOU enrolled in a Certificate course. However, considering that tuition accounts for only about 10% of total cost, the Open University student at IGNOU and his family are saving a lot of money compared to students who go to a regular school.

One of the aims of IGNOU, established in 1985 and named after former Prime Minister Indira Gandhi – the second female prime minister in the world – is to ensure that even in the remotest part of India, any student could access its instruction and earn a degree.

And since then, the Open University has expanded tremendously from its first batch of 1,000+ graduates in 1989 to satellite colleges in 40 countries in the Middle East, Asia, Africa and Eastern Europe.

It offers 175 academic programmes made up of 1,100 courses at certificate, diploma and degree levels.

Pioneering school The Wilson Building in England's Milton Keynes campus. © CHMEE2/WIKIMEDIA COMMONS

54

The original Open University

By European standards, England’s Open University, established in 1969, is a large university both in terms of enrollment figures and campus size.

Since its first students enrolled in 1971, more than 1.5 million students have studied courses in OU, which is located in a 48-hectare campus at Milton Keynes in Buckinghamshire.

Its current student population of 250,000, including over 50,000 overseas students, makes it the largest academic institution throughout the UK. Since it involves distance learning, the OU uses written and audio materials, the Internet, disc-based software and TV programmes on DVD. For 35 years, from 1971 to 2006, BBC broadcast course-based programmes for the OU students.

To help the online students, tutors provide feedback on the work of the students through face-to-face tutorials, telephone or the Internet.

Some offer online conferencing service, while certain modules require day schools made up of daylong sessions.

Modules are based on an equal weight between exams and coursework made up of tutormarked assignments.

Despite the non-traditional way of teaching, the OU method is definitely successful since in the Times Higher Education Table of Excellence in 2008, OU ranked 43rd, between the University of Reading and the University of the Arts London.

In the 2011 Academic Ranking of World Universities, the OU placed 247th. It is one of only three UK universities that had been accredited by the Middle States Commission on Higher Education in the United States.

Although 70% of the OU students work part-time or full-time, the distance learning offered by the pioneer university is beneficial to other types of learners. They include those who cannot attend on-campus course due to health limitations, work hours, overseas location, incarceration, military service and family duties.

A noticeable trend in the demographics of OU students is that a growing number are new undergraduates in the age bracket between 17 and 25. As of spring 2011, the university had 32,000 undergraduates below 24 or 25% of all students.

The Open University is emerging as an acceptable alternative for young people to gain a degree as the cost of attending a traditional university soars. Another factor is the widespread use of information technology used mainly by online schools as their main teaching tools.

FEATURE A U G U S T — S E P T E M B ER 2013

Young Brits who would study in the OU, like their Indian counterparts in the IGNOU, stand to save a lot of money by being online students. The average cost of a Bachelor’s honours degree at OU is about to go up to GBP £5,000 (USD $7,622), while a full-year’s tuition at the University of Cambridge is almost double at GBP £9,000 (USD $13,728).

In keeping up with the online character of the university, the OU held in 2000 its first virtual graduation ceremony in UK at the campus in Milton Keynes with 26 students from eight nations bestowed their Master’s degrees.

The scenario of learning online and holding virtual graduation ceremonies would likely be extended further in the career of its graduates as the Internet had made possible work-from-home arrangements or business process outsourcing that allows an employee to perform his tasks at home or in an office environment, but in another country.

© FROM TOP: MATTBUCK4950. US EMBASSY TEL AVIV/FLICKR; WWW.IGNOU.AC.IN

59 and still growing In a span of just more than four decades since the OU began in 1969, the number of open universities around the world has grown to 59 as of last count.

Significantly, the bulk of them are located in Asian, African and Middle Eastern countries, although aside from OU, there are also open universities in first-world nations such as the Open Universities of Australia, Israel, The Netherlands, New Zealand, Hong Kong and Japan.

The OU, for its part, continues to pioneer in online education by the launch in December 2012 of Futurelearn, a company that aims to bring together similar courses in leading British universities. Those that have signed up to join Futurelearn are the Universities of Birmingham, Bristol, Cardiff, East Anglia, Exeter, King’s College London, Lancaster, Leeds, Southampton, St Andrews and Warwick.

Where to?

Global firm Arup Foresight Innovation + Incubation, a professional consultancy that provides services in management, planning, design and engineering, in February 2012 released a book titled Campus of the Future.

The book is the result of two years of conversations and workshop events with higher education institutions and similar academic bodies in the US and UK, plus professionals such as engineers, architects, designers, planners, academics, administrators, facilities managers, technology experts and behavioural psychologists.

Arup believes that in the coming years and decades, the student body will become more diverse as more mature people return to school to develop their skills, enhance

Campus life

Bricks-and-mortar universities aren't going anywhere, and will still need student dorms (above) and libraries (below). The Indira Gandhi National Open University, with 3.5 million online students, holds its 20th Convocation (bottom).

employment prospects or change careers.

More foreign students are also expected to study overseas as a result of the improvement in income levels in emerging economies.

At the same time, the young, tech-savvy generation will be entering the university system. This generation has grown up using smartphones and social media as well as playing virtual games. Among their expectations is that their university experience will ‘reflect the real-time, connected nature of the web’, says Arup.

Since they are accustomed to being networked and always on, such students would want constant access to learning materials and resources, fellow students, experts and faculty members.

To meet these students’ expectation of personalised and customisable learning environments, universities would have to be learner-centred, experiential, immersive and social, Arup said.

That means higher education needs to have more flexibility when it comes to responding to changing student needs, such as having learning solutions for the busy, mobile lifestyle of older students that integrate into their daily lives.

Arup concludes that it would call for a blend of a physical and digital campus experience.

The consultancy also believes that a purely online service, such as those offered by online universities, could work for some niche students, including foreign enrollees and mature students.

However, it pointed out that the greater bulk would still be the young, net-savvy types who would want and expect some face-to-face interaction, to build social skills and, at the same time, to have some fun, as most university students do.

While learning would no longer be limited within packed lecture halls or classroom tutorials, the availability of new technologies would certainly alter the way education would be delivered.

Arup identified these new learning strategies as multi-party collaboration, peer-to-peer learning, immersive 3D or location-based learning, which are all parts of a new emerging style of instruction the campus of tomorrow must incorporate.

Otherwise, they run the risk of offering the same ‘Victorian education’ the leaders of the present generation grew up with, ‘but with more technology’.

55

FEATURE

EduCity

A UGUST — SEPTEM BER 2013

in Iskandar Malaysia

Some believe the future of education lies with Open Universities.

Here’s another take.

BY JENNIFER LS HARRISON Photo and map illustration courtesy of Iskandar Regional Development Authority (IRDA)

Western education for less

Students enrolled at Newcastle University in Malaysia enjoy a Western education with significantly lower fees.

56

E

duCity is a 305-acre area in Nusajaya, part of the Iskandar Malaysia development region in southern Malaysia. It can perhaps best be described as a shared campus for multiple universities and educational institutions, with shared facilities such as accommodation plus sporting complex and stadium, and it is the focus for the region’s plan to become a premier international education hub.

Although still under development, there are three facilities already open and operating. The University of Southhampton (Malaysia campus), Newcastle University and Medicine Malaysia (NUMed) offer tertiary education.

Still within the development region but outside of EduCity are Marlborough College, a British boarding school, plus primary and secondary Trust Schools.

There are also other facilities operating from a temporary campus in Johor Bahru, the capital city of the region. The Netherland’s Maritime Institute of Technology is planned to open in EduCity later this year, while the University of Reading (Malaysia campus) and Raffles University will move to the permanent EduCity space once complete.

And the University of Southern California is expected to complete construction soon and open its Multimedia University, which will be conveniently

located just 10 minutes from Pinewood Studios. Both are hoped to ‘transform the Malaysian entertainment industry’.

PLANS FOR THE FUTURE As of 2011, approximately 300,000 Malays with university educations were counted as working abroad. Countless families in Malaysia also send their children to Western schools, primarily in America and the UK. EduCity, therefore, is in part a reaction of the government to reverse these brain-drain-like trends.

At a significantly lower price, Asian families can now offer their children the Western education they want, without leaving the region, thereby increasing the likelihood of staying in the region following their education. And with so many of these desired institutions setting up shop in one particular area, the draw is expected to reach across the whole of Asia.

According to University World News, about 16,000 students are expected to receive their education in Iskandar Malaysia’s EduCity, once the project is complete.

A student village and sporting complex are planned to complete by next August, in time for the 2014 academic year.

By 2020, 30% of the students are expected to be from outside of Malaysia, and by 2025, the number is expected to double to 60%.

FEATURE A U G U S T — S E P T E M BER 2013

Flagship zones a Johor Bahru City Centre b Nusajaya c Western Gate Development d Eastern Gate Development e Senai-Skudai

EDUCATIONAL FACILITIES IN ISKANDAR MALAYSIA Newcastle University Medicine Malaysia (NUMed) The medical facility sits on 13.5 acres and expects to have 900 students by 2015.

Netherlands Maritime Institute of Technology (NMIT) Offering maritime studies, the university hopes to have 1,620 students by 2015.

EduCity

University of Southampton Malaysia Campus (USMC) The engineering facility expects 1,150 students to occupy is nearly 1.4-acre setting by 2015.

University of Reading Malaysia The university offers degrees in Business and Law, Built Environment, Pharmacy and Chemistry and Executive Education.

They expect an enrolment of 2,000 students by 2017.

Raffles University

Secondary Trust School

Sitting on 65 acres and with an expected 3,000 students by 2018, the facility is focused on Design and Art, Business, Health Sciences, and Education.

The trust school also follows a Malaysian syllabus and will have a maximum student intake of 700 students of 360 boarders and 340 day students.

Marlborough College As an independent, co-ed, British boarding school for children ages 11 to 18 it will have a maximum student population of 1,347.

Multimedia University / University of Southern California

Primary Trust School

Although beginning with 188 students when it opens its doors (construction is expected to complete in December 2013), this cinematic arts university plans to reach its maximum capacity of 504 students by 2022.

This public school follows the Malaysian curriculum and has a maximum student population of 600 students (20 classrooms with 30 children per class) and includes its own amphitheatre and football/playing field.

SHARED FACILITIES International Student Village As the hub of student accommodation, Student Village occupies five acres of EduCity. It’s the student common area with cafeteria.

Multi-Varsity Enterprise Building The shared-facilities centre on seven acres includes NMIT, USMC plus a future creative multimedia school and future hospitality school.

Stadium and Sports Complex A first-class sporting facility on 21.5 acres offers a football pitch, 400-metre running track and seating for 12,000.

Plans for EduCity include expansion, but selectively. With the intention of becoming a global education destination, and a first-class one at that, not just any school or university will be allowed to open in the area.

57

Top univers The Times' Higher Education produces a study of world universities, backed by Thomson Reuters.

According to their World University Rankings 2012-2013, based on ‘performance indicators’ such as teaching, research, knowledge transfer and international outlook, the US dominates the rankings, with 15 of the top 20 (four of these located in the state of California alone).

The UK comes in next with four, leaving the remaining one to Switzerland.

1

95.5 SCORE

California Institute of Technology Pasadena, California, USA

More than 30 graduates of this prestigious university located nearby Hollywood have won Nobel prizes.

2 93.7 SCORE

Stanford University Standford, California USA

Founded in 1891, Stanford is perhaps the most selective university in America, after Harvard.

58

3 93.7 SCORE

University of Oxford Oxford, United Kingdom

The world’s third oldest educational facility was once home to about 30 world leaders and no less than 12 saints.

4 93.6 SCORE

Harvard University

Cambridge, Massachusetts USA

This, the oldest academic institution in the United States, also has the highest rate of endowment for any global academy.

rsities W O R L D AROUND THE

5

93.1 SCORE

Massachusetts Institute of Technology (MIT) Cambridge, Massachusetts USA

6

92.7 SCORE

Princeton University Princeton, New Jersey USA

11 Yale University

89.2

12 Swiss Federal Institute of Technology (ETH)

87.8

New Haven, CT, USA

Zürich, Switzerland

87.7

14 Columbia University

87.0

15 University of Pennsylvania

86.6

16 Johns Hopkins University

85.6

17 University College London

85.5

18 Cornell University

83.3

19 Northwestern University

83.1

20 University of Michigan

82.6

New York, NY, USA

7

92.6 SCORE

University of Cambridge Cambridge, United Kingdon

Another American ‘Ivy League’ school, though much smaller by comparison and, having been founded in only 1746, is considerably newer, too.

8

90.6 SCORE

Imperial College London London, United Kingdom

Philadelphia, PA, USA

Baltimore, MD, USA

London, UK

Ithaca, NY, USA

Evanston, IL, USA

Founded in 1209 by some unsatisfied Oxford academics, a few of its more famous alumni include Newton and Darwin.

9

90.5 SCORE

University of California Berkley, California USA

The aptly named university, founded in 1907 and located in the heart of London’s museum district, focuses on medicine, natural science and engineering.

10 90.4 SCORE

University of Chicago Chicago, Illinois USA

SCORE

13 University of California Los Angeles, CA, USA

Literally just around the corner from Harvard, this global technical ambassador has produced 70 Nobel laureates.

SCORE

Ann Arbor, MI, USA

SCORE

SCORE

SCORE

SCORE

SCORE

SCORE

SCORE

SCORE

The Best of Asia While no universities in Asia managed to get into the top 20, a few came quite close:

Japan

University of Tokyo just missed the cut by coming in at number 27 with a score of 78.3.

Singapore

National University of Singapore (NUS) ranked number 29 with a score of 77.5.

Considered a by-product of the gold-rush era, UC Berkley is most often associated with hippies protesting in the 1960s than for its discovery of vitamin E.

Founded in 1890 on a grant and a dream of the Mr. Rockefeller himself, the university operates 125 research institutes and centres.

Hong Kong

The University of Hong Kong came in at number 35 and scored 75.6.

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to study at university

Real estate offers such a wide selection of educational paths to follow — from architecture to urban planning.

Here’s a guide to what and where to study the profession of your dreams.

BY JONALYN FORTUNO

S

© BLUEROCK / SXC.HU

Real estate specialties

tudents who want to skip past the usual degrees should consider making a beeline for courses that offer a unique career path. And wouldn’t it be such a welcome change to be in a profession where you can be your own boss and earn big bucks to boot? Well, that is possible if you take real estate as a career choice.

With real estate playing such an role in a country's economy, most academic institutions have taken a keen interest to the teeming opportunities that it presents. Consequently, they added real estate courses in their offerings where students could specialise in a programme that eventually leads to a bachelor’s degree in real estate.

Among the many perks of having a real estate degree is that you are not limited to real estate field per se. Given the wide array of prospects that it has to offer, students can easily shift from one choice to another when the doldrums strikes.

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The Wall Street Journal, in a report by James Carberry, said that the industry provides a spectrum of career choices, such as working for a large developer or homebuilder, engaging in services like architecture, consulting, construction and specialising in finance, marketing, investment, project management and other related areas.

As for the more common roles, these include real estate clerk, property manager, real estate appraiser and real estate agent, to name a few. For each career choice though, candidates should be on the lookout of the minimum requirements that employers would set.

As in the case of real estate clerk and property manager, candidates with at least an associate’s degree or a bachelor’s degree stand a better chance of getting the position.

Real estate agents, on the other hand, are often required to take at least a few hours of real estate courses before finally being licenced.

Every year in many countries, they may also be obliged to complete the compulsory Continuing Professional Development (CPD) course designed to gauge their mastery in the market.

In other countries such as the US, academic background and a licence are of vital importance to practice the profession. For instance, in the case of real estate brokers, the US Bureau of Labor Statistics (BLS) stated that the minimum requirement for this profession is a high school diploma. However, licensing guides in most of the states demand that they finish postsecondary coursework related to real estate or finance.

Moreover, employers also appraise applicants based on their education and experience as well as skill sets, which are already given.

But now that more academic institutions have included real estate in their programmes, some employers are big on applicant’s alma mater.

So if you came from highly prestigious universities such as Harvard, Massachusetts Institute of Technology, or Georgetown (they now offer degrees in real estate), you’re likely to be accepted and be the top agent in the long run.

But again, when studying real estate, you are not just limited to a certain field. There’s a wide selection of educational paths, which you can tread as they bear relevance to real estate.

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Architecture Architecture is usually referred to as a work of art. Set aside the art concept, and you’ll see that basically it’s all about planning, designing, and construction of physical structures with due consideration to aesthetic effects. It may sound easy to some, but really there are numerous aspects embedded on this job.

As architects should first and foremost have a knack for design with thorough understanding in the built environment and social trends. Architects are highly trained in the art and science

of the design as well as the fundamental principles of construction, which can be summed up into order, arrangement, eurythmy, symmetry, propriety and economy. They are also trained on how to efficiently oversee the projects from conception to completion.

Taking into account that architecture is rigorous profession, there are three requirements: First, is completion of university degree or master’s degree in architecture, followed by internship or training, and finally, the licensure examination.

Coursework varies by school

Some top schools that offer high-ranking programs in architecture

a Architectural design

a Princeton University

b Environmental systems c Construction landscapes d History of architecture e Building science and technology f Calculus for architecture

• Master of Architecture (M.Arch.)

• Bachelor Degree in Architecture b Yale University • Liberal Arts Major in Architecture • Master of Architecture • Master of Architecture I • Master of Architecture II • Ph.D in Architecture

c Columbia University

• Bachelor’s Degree (BS) in Architecture • Masters of Architecture I • Masters of Architecture II • Doctor of Architecture

g Visualisation

Alternate practice and specialisation a Building code and envelope b Sustainable design c Technical writing

d Cornell University

e f

d Historic preservation or conservation and accessibility

g

e Real estate or

property development

f Project management g Construction management h Interior design

h i

• Bachelor of Architecture • Master of Architecture • Doctor of Architecture University of California, Berkley • Bachelor of Arts Major in Architecture • Master of Architecture Massachusetts Institute of Technology (MIT) • Bachelor of Science in Architecture (BSA) • Master of Architecture University of Cambridge • BA Architecture • Masters in Architecture and Urban Design University of Sydney • Bachelor of Design in Architecture • Master of Architecture University of Melbourne • Bachelor of Environments with major in Architecture • Master of Architecture

Interior Design Creative. Imaginative. Artistic. Three words that best describes an interior designer. And just like architecture, interior design is when aesthetic and technical elements are fused to improve the overall look of a given space. But it is more than just decorating a home and ensuring that the chosen lighting, colors, texture, and other elements would blend together.

When conceptualising a design, among the primary things being considered by interior designers are functionality, safety, and health of the occupants. Besides the eye for detail, anyone who wants to embark on this career path should also be equipped with skills needed for ‘conceptual development, liaising with the stakeholders, and the management and execution of the design'.

Interior design can be either commercial or residential.

But before practicing the profession, one should get a college degree or university degree in institutions accredited by professional organisation of interior designer like the Council for Interior Design Accreditation. There is also a required number of years for apprenticeship (at least one to three years, depending on the state or country), preferably under the supervision of a qualified interior designer. This is so the students could take the qualifying examination administered by the National Council for Interior Qualification so as to be fully licenced.

Coursework varies by school a Computer-aided design (CAD) software b Architectural and engineering concepts c Ergonomics, spatial planning and furniture design d Interior design theories e Interior design history

Landscape Architecture Landscape architecture, compared to architecture, is more focused on the sustainable and environmental aspect of the built environment. Thus, it primarily deals with planning and design of land while taking into account the plants, wildlife, water bodies and structures surrounding it.

Landscape architects are educated to design open spaces while ensuring that the changes made will not create an adverse environmental impact. To practice the profession, a Bachelor of Science in Landscape Architecture or Bachelor of Landscape Architecture is usually needed.

Alternatively, one could also get a traditional architecture degree with a concentration in landscape design. The next step is passing a Landscape Architect Registration Examination (LARE) to be able to work as a certified landscape architect in most countries..

Coursework varies by school a Plant selection and design

h Plant materials

b Ecology

i Housing landscape design

c Construction landscapes

j Horticulture

d Site construction

k Park planning

e Botany

l Urban design

f Graphic design

m Landscape design and preservation

g Open space

n Landscaping and landscape

and park design

architecture history

Some top schools that offer high-ranking programs in landscape architecture a Harvard University

• Master in Landscape Architecture

b Cornell University

• Bachelor of Science, Landscape Architecture • Master of Landscape Architecture c National University of Singapore • Master of Landscape Architecture

d University of New South Wales

• Bachelor of Landscape Architecture

Some top schools that offer high-ranking programs in interior design: a University of California, Berkley

• Certificate Program in Interior Design

b University of California, Los Angeles • Master of Interior Architecture

e University of Melbourne

• Bachelor of Environments, Major in Landscape Architecture • Master of Landscape Architecture

f University of California, Berkley

• Bachelor of Arts, Major in Landscape Architecture • Master of Landscape Architecture • Ph.D in Landscape Architecture and Environmental Planning

c New York School of Interior Design

g University of Michigan

d Cornell University

h University of Pennsylvania

• Bachelor of Fine Arts in Interior Design • Master of Fine Arts in Interior Design • Bachelor of Science in Interior Design

e Hong Kong Polytechnic University

• Bachelor of Arts in Design, Master of Design

• Master of Landscape Architecture • Ph.D in Landscape Architecture • Master of Landscape Architecture

i University of Hong Kong

• Bachelor of Arts in Landscape Architecture • Master of Landscape Architecture

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Real estate,

general

There are several avenues to follow when studying real estate, and each university that offers a degree in the field will stress a different course. For example, you can study finance with specialisation in real estate or business administration of real estate. Some universities also offer a degree in the general category of Real Estate Brokerage and Development as well as the quite broad degree of Professional Studies in Real Estate.

While many countries or areas do not necessarily require a specific university degree to practice as a real estate agent or even, say, a mortgage broker, they may nevertheless require licensing. A university degree in these cases may not guarantee a license, but may put you on the fast track, and certainly will make the learning curve easier.

It’s also worth mentioning that obtaining a university degree in the real estate field of your choice—along with the required licensing and any practical experience (such as an internship) – will make you more attractive to a larger array of potential employers, and may certainly help promote your career down the road.

University coursework and specialisations in real estate varies, of course, but may include a Finance

i Brokering

b Property and asset management

j Energy issues

c Risk mitigation

k Residential and commercial real estate

d Real estate construction

l Surveying

e Real estate design

m International real estate

f Development

h Business administration

g Environmental impacts

o Valuation

Real Estate Law Real estate law refers to the law encompassing rights to possess, utilise and enjoy land and immovable property therein. It also covers buying, selling, leasing, managing financing and other aspects related to real estate.

Real estate lawyers usually assist or provide legal counsel to clients in matters pertaining to selling property, transferring deeds of ownership, negotiating leases, preparing real estate contracts and dealing with other real estate transactions. It is also their duty to ensure that both rights of sellers and buyers are protected.

There are universities that offer pre-law programmes that provide particular insight to the real estate industry. After earning a bachelor’s degree of your choice, students should pass the Law School Admission Test (LSAT) in order to get to a law school and earn a juris doctorate degree from a law-accredited school. There are law schools where students could specialise in real estate law, but to get a good real estate background, students can intern in real estate firms or law firms with real estate lawyers.

Also once a student passes the bar exam, he can further his study in law schools that offer a Master of Laws in Real Estate program.

h Corporate real estate

Some top schools that offer high-ranking programs in real estate:

Coursework for real estate law varies by school

a Cambridge University

a b

Ownership rights and negotiations

b Oxford Brookes University

c

Brokering, transfers Bankruptcy law

c University of Glasgow

d e f g h

Construction and development contracts

• MPhil in Real Estate Finance • Master of Science in Real Estate Management • Master of Science in Real Estate

d HEC (Paris)

• Global Real Estate Master

e University of Melbourne • Master of Property

Real estate property taxation

Condominium law Financing, income tax law Residential and commercial leases, including both office and retail leases, and an overview of international legal systems.

f Hong Kong University

• Master of Science in Real Estate

g Harvard University

• Master in Design Studies in Real Estate and the Built Environment

h Shanghai University of Finance and Economics • Master Program in Real Estate Economics

i New York University

• Master of Science in Real Estate

j University of California, Los Angeles

• Bachelor’s of Science (B.S.) in Business Administration, Real Estate

Some top schools that offer high-ranking programs in real estate law: a New York Law School

• LL.M (Master of Laws) in Real Estate

b John Marshall Law School (Chicago) • MS in Real Estate Law • JD/LL.M in Real Estate law c Pace Law • LL.M in Real Estate Law

k University of Southern California

d University of Miami School of Law

l University of Michigan

e UCLA School of Law

• B.S. Public Policy, Real Estate Track • B.S. Business Administration, Real Estate

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• LL.M in Real Property Development • LL.M in Real Property Development

Structural Engineering These are the people who ensure that buildings have a strong foundation and are structurally sound and able, for example, to weather pressures caused by natural disasters and structural loads.

Degrees in this field are usually obtained through a civil engineering degree programme with emphasis on structural engineeering or a master’s degree in structural engineering. Those who specialise in another engineering or science discipline may also enter the field but may take quite sometime to practice the profession.

Structural engineering requires a lot of examinations even at the start of the senior year. Engineering students should pass the Fundaments of Engineering Examination (FE) so they would qualify as an engineering intern (EI) or engineer in training (EIT).

All countries require licencing, but the requirements to qualify for the Structural Engineering Examination (SE) vary. Nevertheless, the standard requirements include a number of specified years of practicing experience, completion of a nationally administered exam and a state-specific exam. There are other countries that require an additional licence or authority for Structural Engineering. This can only be obtained after being licensed as Civil Engineer with minimum level of work experience as such.

Core coursework varies by school a Strength of materials and solid mechanics b Solid mechanics c Structural analysis - static and dynamic d Material science e Numerical design and conceptual structural design f Reinforced concrete and composite structure g Timber, masonry and structural steel designs

Urban planning Typically a degree offered as part of an architecture school or geography department, an urban planner studies to learn how to make the best use of land and infrastructure within a community.

However, it’s more than economics, housing and transportation. An urban planner is educated to plan for that community’s health and welfare as well as the core social policies and political and legal guidelines.

Most degrees in this field can be obtained at the master’s or doctorate level, but a bachelor’s degree in a related field such as architecture, social sciences, statistics or economics, will help you get into a better school for this field.

Core coursework varies by school a History/theory of planning b Statistics c Urban design and planning

h Structural analysis

d Urban economics

I Pre-stressed concrete design

e Planning practice

J Bridge engineering

Some top schools that offer high-ranking programs in urban planning

and space frame design for building and aircraft

K Civil and aerospace structure rehabilitation

Some top schools that offer high-ranking programs in structural engineering a Stanford University

• Master of Science in Structural Engineering

b University of Cambridge • Master’s Degree in Structural Engineering c University of California Berkeley

• Bachelor’s Degree in Civil Engineering with emphasis in Structural Engineering • Master of Science in Structural Engineering d Imperial College London • MSc in General Structural Engineering

e National University of Singapore

• Master of Science in Civil Engineering with Specialization in Structural Engineering f University of Melbourne • Bachelor of Environments, Civil Systems • Master of Engineering (Structural)

g University of California, Los Angeles

• Masters in Structural Engineering • BS Civil Engineering major in Structural Engineering and Mechanics

h University of Hong Kong

• Bachelor of Engineering in Civil and Structural Engineering • Master of Science in Engineering in Structural Engineering

a Massachusetts Institute of Technology (MIT) • Master in City Planning

b University of California, Berkley

• City and Regional Planning/Master of City Planning

c University of California, Los Angeles

• Master in Urban and Regional Planning

d Harvard University

• Master in Urban Planning

e University of Southern California • Master in Urban Planning

f Melbourne School of Design • Master in Urban Planning

g University of Sydney

• Urban and Regional Planning

h London School of Economics

• MSc Regional and Urban Planning

i Newcastle University • MSc Town Planning

j National University of Singapore • Master of Urban Planning

k University of Hong Kong

• Master of Science in Urban Planning

l University of Tokyo

• Master’s / Doctorate, Urban Engineering

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C i t i e s

w i t h

i m p r e s s i v e

architecture When one talks about architecture, there are only a handful cities that automatically come to mind.

BY JONALYN FORTUNO

Look up

Tall, grandiose architecture is usually an attempt to immortalise human achievement. The enormous Dubai Mall in the UAE.

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© TRIOPTIKMAL, SALIS / FLICKR

S

ince the beginning of time, humans strive the create structures that will immortalise their achievements. It’s as if the number of monumental buildings that they conceive measures their accomplishments. With only stone, sand and their brilliance at hand, one can only imagine what our ancestors had to go through just to erect just a single tower.

Suffice it to say that architecture is one of the oldest art forms. No one knows exactly when humans started building structures - perhaps dating back to the Egyptian pyramids. For thousand of years, architecture has been part of our culture, serving as testament to each civilisation’s creativity and innovation.

And in every era, new creations spring, signifying the brilliance of the people who made them. Indeed, the architectural designs created by them paved the way for evolution and innovation.

FEATURE A U G U S T — S E P T E M B ER 2013

Landmarks

The Marina City building in Chicago. © FROM TOP: B*2, PYONKO/FLICKR

influenced by Persian, Indian and Islamic design dating back to late 19th century – is based on climate as well as religious and social customs.

This city is now dotted with so many skyscrapers that Chicago would have to double its work to retain its title as skyscraper capital. Dubai has truly created marvellous buildings that it’s almost impossible to believe that its architecture is primarily concerned on four things: simplicity, functionality, durability and sustainability for its desert climate.

But Dubai is not only noted for its impressive skyscrapers; this city will surely top in every survey once its current projects have been completed. At present it is constructing a theme park, Dubailand, which is expected to be at least twice the size of Walt Disney World in Florida, currently the largest theme park in the world. But the real deal, should plans to build push through, is the Hydropolis, the world’s first ever underwater luxury resort.

With all these achievements, Dubai has really given architecture a whole new meaning. No wonder, this city has made the list of Travel Channel’s World’s Top Architecture Cities.

②

Living in the present, we can see how far we have come and how creative we have become. Many cities around the world can claim the world’s best for architecture, but there are three cities that would have made our ancestors proud had they been impervious to time.

③

Dubai

Many cities can lay claim to being the birthplace of truly modern skyscrapers, but Dubai is home to the world’s tallest freestanding building: the 830-metre-tall Burj Khalifa.

Over the years, Dubai has greatly altered its largely desert landscape, ulti-

mately creating its own name in the world of architecture. It has even become the home for world’s largest shopping mall based on total land area (Dubai Mall), the world’s tallest hotel (Rose Tower) and the world’s largest airport terminal.

Its brave venture in architectural advancement has indeed surprised the world. The global downturn, that hit the emirate sometime in 2008, did not set this city back from building towers that would soon earn its title as having the ‘most contemporary and ambitious architecture in the world’.

But make no mistake; despite the extravagant architecture that Dubai has displayed before the world, its purpose is still to honour its Arabic heritage. Suffice it to say that its architectural concept – heavily

Chicago

Chicago is the birthplace of modern American architecture. With its world-class modern buildings, this city is truly the ‘home to unique and innovative designs that have shaped American culture’, as cited by Go World Travel.

But the Windy City might not have been able to reach the pinnacle of its architecture had it not been scorched by the Great Chicago Fire that destroyed almost a third of its area. Such tragedy left Chicago with a blank slate, which, as it turned out, only fired the greatest architects to create the most extraordinary buildings the world has ever seen. And if there is one thing that Chicago should be acclaimed for, that is its originality.

Being the first city to ever conceive modern skyscrapers, Chicago is the centre for sky-high buildings with tube-frame constructions. One good example is the 442-metre Willis Tower (formerly Sears Tower), built with nine 75-square-foot

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FEATURE A UGUST — SEPTEM BER 2013

The Spanish-born architect is the leader of Catalan Modernism and he is known for his individualistic style.

tubes of welded steel that extend 50 and 108 storeys high. For nearly 25 years it was the tallest building in the USA, a record it took from New York’s World Trade Center towers in 1973. Indeed, its dizzying height always magnets architecture enthusiasts from all over the world.

Another Chicago original is the Wrigley Building, which is considered the ‘biggest, brightest jewel in Chicago’s architectural crown’. Being the first landmark to be floodlighted, Chicagoans have always been fond of this place. Aside from that, this building was also the first air-conditioned office in Chicago.

Among the many monumental buildings that the city has constructed, there’s only one tower that brought the city’s architecture to a whole new level. Marina City, a mixed-use, corncob-shaped, 65-storey tower, may not be the most popular site in town, but its construction bolstered Chicago’s image as a ‘forefront of modern urban architecture’.

But if you want to have fun while breathing in the city’s modern architecture, then Navi Pier is the best place to go.

This 3,300-foot-long pier is strategically designed as a shipping and amusement area. To date, it is Chicago’s number one tourist spot.

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①

Barcelona

Lauded as the number one city for architectural buffs, Barcelona never fails to amaze the world with its grandiosity. With its numerous modern buildings and impressive constructions, it’s no wonder why it’s Europe’s fourth most visited city, after Paris, London and Rome. Among its most prized architectural designs include the Torre Agbar and structures designed by famed architect Antoni Gaudí, such as the still-unfinished church of Sagrada Família and the Casa Milà.

But what makes Barcelona stand out from the rest is its rare combination of classic and modern architectural design.

It’s as if all the greatest architects from the past and present have worked together to concoct the city’s splendid buildings. Indeed, it has been said that when Catalan Modernism commenced, all the ‘richest Barcelones and the top architects of the day competed to build the best and most intricate buildings’. This explains why the streets of Barcelona are full of extraordi-

nary examples of Catalan Modernism that the world could ever produce. According to National Geographic, ‘Catalan Modernism is so important to the cultural identity of Barcelona that it finds perhaps its greatest expression in the works of one man.’

Barcelona embodies great architecture that even its nooks and crannies radiates art. And as mentioned in BBC Travel, ‘even the mere sidewalks of Barcelona are decorative and beautiful. It is indeed fun to stroll around in a street with breathtakingly beautiful architecture. And there’s only one person to thank, and that is Antoni Gaudí.

As stated by World Heritage, ‘Gaudí’s work represents the genius of the architect, expressing particular spatial qualities and plasticity in the undulating lines and harmonies of colours and materials in architectural surfaces and sculpted features.’

Sagrada Família is the living proof of Gaudí’s unsurpassable architectural design. Story has it that this project became Gaudí’s obsession to the point that when funds ran out, he shelled out his own money and looked for likely donors. Religious as he is, Gaudí visualised this temple as his Holy Mission and he even planned to build three façades, symbolising the Nativity, Passion and Glory. He also wanted to vest four towers to each façade because, according to him, ‘the angels will see them’.

The basilica has been under construction since 1884, and is expected to be completed in 2026, which will coincide with the 100th death anniversary of its creator.

© FROM TOP: FRANCISCO DIEZ, SARAH ACKERMAN / FLICKR

Antoni Gaudi

FEATURE A U G U S T — S E P T E M B ER 2013

Ubiquitous architect

Richard Meier transforms buildings into visual poetry Meier’s style doesn’t strike out through details or colours.

Instead, it’s through a simple and almost sterile presence that he conquers the taste of every lover of aesthetics.

By Andreea Serb

T

he famous American architect is a man of vision and a master of modern design and architecture.

His name has been uttered millions of times by critiques and amateurs, while his works have been viewed, appreciated, commented, lauded, awarded or praised the world over. It is fair to say that he is becoming one of the most celebrated architects of our time.

In fact, the recipient of the Pritzker Architecture Prize (1984) and the AIA Gold Medal (1997) was awarded one of the most important projects of the 20th century (and so named ‘the commission of the century’) – the Getty Center of Los Angeles, California.

A lifetime of creation While the Getty Center may turn out to be his most significant contribution to his chosen field, Meier is more than just one building. With 50 years in the field of architecture and design, Meier has shaped an entire revolutionary movement and captured the essence of a devout artist who has given to the world more than one could possibly grasp.

From Italy to Germany, or different American cities, it is not difficult to guess which building is a Meier building (that is if you have an eye for the arts).

Along with his remarkable buildings scattered in different corners of the world, Meier has given life to museums, churches and residences, raising towers or transforming random emptiness into spaces filled with life and grace.

In fact, Meier is the man who gave us the chance to enjoy the beauty of paintings or sculptures in some of the most stunning museums in the world. And if viewing art is not your cup of tea, then surely you must appreciate these places as centres of social and civic endeavours.

The master himself says that he believes that ‘Architecture has the power to inspire, to elevate the spirit, to feed both the mind and the spirit, being the most public of all arts.’

His passion for museums shows once again how profoundly his creations are related to the human spirit. As an architect, he enlivens space with art or gives different meanings to residences by pinpointing a building’s personality – and the result is obviously so Meier.

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FEATURE A UGUST — SEPTEM BER 2013

GETTY CENTER – the beginning of

a never-ending journey

The Los Angeles work of art is probably Meier’s most lauded museum, a complex centre that is blooming with art, as it contains several buildings dedicated to visual arts, exhibitions, libraries and research institutions.

It hosts a permanent collection of Greek and Roman art plus numerous Eu-

ropean paintings and photography – and it is one of the wealthiest museums in the world visited by nearly two million people each year.

Meier designed this complex building over the span of 13 years, merging all seven units into one, with each having its own special role and individuality. And in fact, the Getty buildings helped Meier a great deal, promulgating him into the main-

stream, opening the gate of success and giving him commissions to work in Europe. It is how an American man made history and became one of the best visionaries in the world in the field of arts and architecture.

Private residences as a form of art and living Meier constructs a powerful link between the past, present and future, connecting ‘the tangible with the intangible’, whether designing for commercial or private commissions.

For instance, in 2012, actress Nicole Kidman sold her Manhattan condo designed by Meier for USD $16 million. So if you fancy one of the posh apartments from the celebrity-packed towers located along the Hudson River, you know what price to expect!

However, celebrities are not the only privileged ones to indulge in the beautiful homes created by Meier. Throughout his extensive career, the world-famous architect has managed to win commissions for private clients all over the world.

Whether it is private homes or condominiums, Meier’s works are equally creative, neat, spacious and have a beautiful connection with the surrounding areas. This seems to be an essential characteristic for Meier as he tends to focus on the fluidity of the buildings as they blend with nature.

It is important to observe that his works, no matter how overwhelmingly imposing they might seem, are certainly not designed to be visually oppressive.

Thirteen years in the making

The Getty Center took 13 years to design, with seven separate buildings merged into one concept.

Meier masterpiece

The Douglas House in Michigan, USA, hidden between trees on steep hills is considered one of his finest works.

COURTESY OF RICHARD MEIER & PARTNERS ARCHITECTS © SCOTT FRANCES ESTO VIA ARCHDAILY.COM; OPPOSITE PAGE: © (TOP) RICHARD MEIER VIA ARCHDAILY.COM; (BOTTOM) AIA

Here it is worth mentioning the Smith House built in Darien, Connecticut (1965 – 1967), which marked the beginning of his work. Meier’s more recent residential accomplishments include the Rachofsky House from Dallas, Texas, (1996), the Bodrum Houses in Turkey (2013), and the Gardone Residence in Italy (to complete in 2014).

Of these, none are quite as famous as the Douglas House.

The Douglas House The beautiful home located on the shores of Lake Michigan has been highly lauded for its design and the way its neat lines merge with the wild forests of Michigan. The house was one of Meier’s first private commissions, and it is known to be one of his finest works.

Building the Douglas House for clients, Jim and Jean Douglas, took three years. Completed in 1973, it is celebrated for its position − a gem hidden between the trees, on the steep hills of the forests of Michigan.

The story of this house was made even more compelling when another couple purchased it in 1983. The Beitlers renovated it completely as the interior was deteriorated due to ack of use during winters. They also restored some of the furniture designed by Le Corbusier and van der Rohe that came together with the house.

The Douglas House gained massive popularity under the ownership of the Beitlers, and received an article in Architectural Digest in 1988, establishing the home as an important part of American heritage.

The importance of lack of colour Meier says, ‘White is the most wonderful colour because within it you can see all the colours of the rainbow. The whiteness of white is never just white; it is almost always transformed by light and that which is changing; the sky, the clouds, the sun and the moon.’

In Meier’s world, white is a crucial symbol of simplicity and purity, almost a strong bond between human craftsmanship and nature as well as a fundamental philosophy that has been progressing over the years, folding and unfolding layers of art and beauty.

Meier’s creations are a true work of art, a proof of meticulousness and a genuine example of perfect modernism polished over years. The master of impeccable minimalism will drag you in this chimeric visual journey, slowly then thoroughly as his works are not to be discovered all at once, as if you’ve rapidly glanced at a painting in a museum.

‘Openness and clarity are characteristics that represent American architecture at its best and they are the principles, which I hope to bring to every design endeavor,’ says Meier.

As progressive as his works continue to be, Meier still admits, ‘Whether we break with tradition or enhance it, we are still connected to the past.’ And this is true.

Richard Meier & Partners Architects is a firm of high fame, known all over the world for professionalism, talent and great success of intertwining modern architecture with environmental and sustainability issues.

Today, the celebrated architect and his work are being paid homage by the Bisazza Foundation in Montecchio, Italy, through an exhibition that will highlight Meier’s abiding passion for white and perfect geometry.

These are just a few of Meier's famous creations that have not only received important awards but have marked a great change in the history of architecture. Whether public commissions or private commissions, he's done it all.

1970 Westbeth Artists Community (New York City, USA)

1983 High Museum of Art (Atlanta, Georgia, USA)

1984 Museum Art Wing (De Moines, Iowa, USA)

1985 Museum für angewandte Kunst (Frankfurt, Germany)

1995 The Barcelona Contemporary Art Museum (Barcelona, Spain) 1996 Museum of Television and Radio (Beverly Hills, California, USA)

1997 Getty Center

(Los Angeles, California, USA)

2003 Jubilee Church (Rome, Italy)

2004 Museum Frieder Burda (Baden Baden, Germany)

2006 Ara Pacis

(Rome, Italy)

2007 City Tower

(Prague, Czech Republic)

2008 Arp Museum

(Remagen-Rolandseck, Germany)

2008 – Present Meier Tower (Tel Aviv, Israel)

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COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

Australia The Sydney Opera House, one of Australia’s most famous landmarks.

COUNTRY INFORMATION OFFICIAL NAME

Commonwealth of Australia

CAPITAL CITY

Canberra

CURRENCY

Australian dollar (A$1 = US$1.04)

LANGUAGE

English (de facto official)

TOTAL AREA

7,692,024 sq km (6th largest in the world)

POPULATION

22,015,576 (July 2012 est.)

REGION

Australasia

TIME ZONES

UTC +8, +9:30 and +10

DIALLING CODE

+61

GDP (Nominal; 2012 IMF estimate)

USD $1.542 trillion (12th largest in the world)

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $66,371 (5th highest in the world)

HUMAN DEVELOPMENT INDEX

0.938 (Very high)

PROPERTY BASICS AVERAGE PRICE

USD $8,717 psm (usually a 120-sqm apartment)

RENTAL YIELD

4.94%

RENT PER MONTH

USD $3,592 (usually a 120-sqm apartment)

CAPITAL GAINS TAX

45%

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY Australia’s property market is as varied as its colourful landscape. However, before making any purchase, buyers should decide the reason for the purchase, as it will help them decide which area (city centres, residential suburbs, or touristy sites) and what type of properties (apartments, terraced houses, villas, bungalows, etc.) to buy.

INVESTMENT Residential suburbs, especially those within 10 kilometres of cities’ CBD and have good transport network, are the places to go. According to Matthew Bell of Australian Property Monitors, the suburbs of Hawthorn (Brisbane), Mentone (Melbourne), Mona Vale (Sydney), Halls Head (Perth) and Thebarton (Adelaide) offer buyers good investment potential because of their proximity to city centres and plenty of commuting options.

SECOND HOME Those planning to send their kids to Australia’s universities can opt for places close to these institutions, such as Central Canberra (Australian National University), Camperdown, Newtown and Darlington (University of Sydney), Parkville and Carlton (University of Melbourne), and St Lucia and Indooroopilly (University of Queensland).

VACATION HOME Those who plan to purchase purely for vacation purposes will be delighted to know the wide range of properties available. The cities of Gold Coast, Townsville and Sunshine Coast are top choices in Queensland; the Sydney suburbs of Manly and Mosman; and suburbs within picturesque Mornington Peninsula south of Melbourne. For a wine connoisseur, there’s Barossa Valley north-east of Adelaide and Swan Valley north-east of Perth.

72

Darwin

BUYING PROCESS ORGANISE A TEAM OF PROFESSIONALS The buyer must find a solicitor (licensed to deal within the state where the property is located); a good mortgage broker with experience in helping nonresidents; and, though not necessary, an accountant to help structure the financials and save on tax.

AUSTRALIA Perth

Adelaide

APPLY FOR A LOAN Mortgage must be pre-approved before looking for a property, so the buyer will know if he or she is eligible for a loan and how much can be borrowed.

SEEK FIRB APPROVAL All applications from foreign citizens are put before the Foreign Investment Review Board (FIRB), which takes 30 days. An approval can only be granted on a specifically nominated property.

Contracts, therefore, with foreign citizens must contain a clause that going ahead with the purchase is conditional upon getting FIRB approval.

FIND A PROPERTY Now is the time to visit Australia and search for a property. The other option is to use a buyer’s agent.

NEGOTIATE THE PURCHASE PRICE General rule: Australian properties usually sell for up to 10% less than their list price. If the buyer is using a buyer’s agent, then he or she will help negotiate the price.

OBTAIN FORMAL MORTGAGE APPROVAL When a property has been chosen, the contract of sale is then forwarded to the mortgage broker or bank to proceed with the formal approval.

EXCHANGE CONTRACTS AND PAY DEPOSIT The contract can be exchanged after the loan has been formally approved and the solicitor gives a go ahead.

A deposit of 10% is needed, although the amount is negotiable. Make sure the contract has the clause ‘subject to FIRB approval’ and 30 days must be allowed for a FIRB decision.

SETTLE This occurs when the property actually changes hands and the loan is advanced. This will be handled by the solicitor in conjunction with the bank and mortgage broker.

Brisbane

Sydney

CANBERRA Melbourne Hobart

GETTING IN VISA REQUIREMENTS Citizens of Brunei, Canada, Hong Kong, Japan, Malaysia, Singapore, South Korea, Taiwan and the USA are eligible to enter Australia by applying for an Electronic Travel Authority (ETA; subclasses 976, 977 and 956). This can be applied for over the Internet, through travel agents and through airlines.

Passport holders of the 27 member-states of the EU, the European Free Trade Association states, and the four European microstates are eligible for the eVisitor visa, which is free of charge. Citizens of Argentina, Bahrain, Brazil, Chile, Croatia, Kuwait, Maldives, Oman, Qatar, Saudi Arabia, Turkey and the United Arab Emirates can apply for an Electronic Tourist Visa (e676).

Citizens of countries not mentioned above can apply for tourist visa (subclass 676), which will allow them to visit Australia for holiday or recreation or to visit family and friends.

For more information on visa application, visit www.immi.gov.au/visitors/.

AIRPORTS AND AIRLINES Air travel is virtually the only way of getting into Australia. Its flag carrier Qantas (www.qantas.com.au) flies from Sydney, Melbourne, Brisbane, Adelaide and Perth to 21 cities around the world, with the most flights to Hong Kong, Singapore, Bangkok, Kuala Lumpur, Jakarta, Manila, Tokyo and Osaka.

Melbourne

For more information on flights to Australia’s major cities, visit the following sites: SYDNEY www.sydneyairport.com MELBOURNE melbourneairport.com.au BRISBANE www.bne.com.au PERTH www.perthairport.com.au ADELAIDE www.adelaideairport.com.au GOLD COAST goldcoastairport.com.au CAIRNS www.cairnsairport.com South Australia’s Barossa Valley

For more detailed guides, visit www.propertylife.asia/countryguides

COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

Canada Parliament Buildings, Ottawa, Canada

COUNTRY INFORMATION OFFICIAL NAME

Canada

CAPITAL CITY

Ottawa

CURRENCY

Canadian Dollar

LANGUAGE

English and French

TOTAL AREA

9,984,670 sq km

POPULATION

34,568,211

TIME ZONES

UTC -3.5 to -8 Summer (DST) UTC -2.5 to -7

DIALLING CODE

+1

GDP

USD $1.844 trillion (11th largest in the world)

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $52, 364 (10th highest in the world)

HUMAN DEVELOPMENT INDEX

0.911 (very high)

(Nominal; 2012 IMF estimate)

PROPERTY BASICS AVERAGE PRICE

USD $8,288

RENTAL YIELD

3.68%

AVERAGE RENT PER MONTH

USD $3,047

CAPITAL GAINS TAX

25%

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY

Although Canada is among the countries which have been greatly affected by the global recession, its housing market is still trying to recover from the slowdown with the help of Canadian government who continue to bring forth measures to ensure the market revival.

Despite the sluggish market, Canada’s allure to property buyers has not waned, thanks to its beautiful scenery, laid-back lifestyle and solid political and social foundation.

Among the property buyers that largely constitute to Canada’s property market are the British who favoured the nation’s location for their second home.

Eastern Canada – This is the perfect location for the cheapskates as homes in this side of the country are relatively cheaper compared with the ones in west.

Transportation is also not a problem because it is pretty much accessible either via air or land. Besides this, Eastern Canada also boasts a spectacular countryside feel coupled with superb sporting facilities including skiing.

© (BOTTOM LEFT) MICHAEL CAVÉN/FLICKR (TOP) FRANCISCO DIEZ/FLICKR

Vancouver – Although its residential property is the

Toronto's Union Station

ALASKA

CANADA

Alberta

Quebec

Edmonton Vancouver

Winnipeg OTTAWA Toronto

USA

most expensive in Canada, Vancouver is where you can find the country’s friendliest people. This place also holds some of the nations best scenic spots with beautiful mountains, rivers, and beaches.

and the money is transferred to the seller’s account.

The Rocky Mountains – home to most of the renowned parks in North America, this place has become a popular destination for people who wish to take a break from the metropolis’ bedlam. Just like Vancouver, its property is also dizzyingly expensive mainly because much of it is located within national park and therefore out of bounds to most of the home buyers. Nevertheless, one of its most recommended areas is Canmore in Alberta because not only does it have a temperate climate zone but its housing prices are also considerably low.

VISA REQUIREMENTS Unless you are a citizen of any of the countries granted visa exemption by the Canadian government, you need to bring a passport and visa to enter the country. Besides this, all the requirements set by the Canadian immigration should be thoroughly satisfied.

In some instances, visitors are required to: ● assure immigration officer about the sufficient ties with the home country such as employment ● sufficient finances to cover the whole duration of stay ● provide complete details about the where you intend to stay while in Canada ● have a medical examination ● provide a letter of invitation to Canada To view the list of countries with visa exemption, click: www.cic.gc.ca/english/visit/visas.asp#exemptions

SOURCE RIGHTMOVE

BUYING PROCESS The buying process is relatively simple partly due to the absence of foreign restrictions in most of the nation’s major cities. But while foreigners can freely choose any property, the amount of property they can purchase may be limited in some cities.

When buying a property, it is important that you hire a real estate agent who is well versed with the property market trends. The next step is to secure a mortgage to determine how much money you can shell out for the chosen property. Once done, you can ask the real estate agent to draft an Offer to Purchase to be presented to the seller along with the 10% deposit of the purchase price. The seller would then decide whether to accept, reject or make a counteroffer. Once done with the negotiation and both parties have agreed on the price, a signed agreement will then be sent to the lawyer for review of conditions stipulated therein. The lawyer would also note the closing date and check on the government regulations. Besides this, the lawyer is also responsible for ensuring that the seller has a clean title and the property taxes are duly paid. Home inspection follows suit as well as the up-to-date land survey on the property. Once everything is in place, the lawyer will draft the Statement of Adjustment detailing the purchase price, deposit and other relevant information. On the closing date, you and the seller will be asked to sign the documents. This is also the time where you take legal possession of the house

SOURCE GLOBAL PROPERTY GUIDE

GETTING IN

SOURCE ANGLOINFO

AIRPORTS AND AIRLINES As Canada is home to some of the most successful aviation programs in the world, passengers are assured of safe air travel.

Canada's largest air and flag carrier is Air Canada. As for international airports, the most important ones are: Vancouver International - www.yvr.ca Calgary International - www.calgaryair.port.ca Winnipeg James Armstrong Richardson International Airport- www.waa.ca Toronto Pearson International Airport – www.

TorontoPearson.com Ottawa macdonald-Catier International Airport – www. ottawa-airport.ca Montréal–Pierre Elliott Trudeau International Airport – www.admtl.com Saint John’s International Airport – www. saintjohnsairport.com For more detailed guides, visit www.propertylife.asia/countryguides

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COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

France La Défense in Paris

and culture enthusiasts. Brittany has been a Celtic dukedom for more than a thousand years, and its culture and history is preserved in the architecture of its property.

Normandy – Beach lovers would be enamored to this place as it offers a wide array of beautiful beaches. The real catch when you live in this place, though, is the serene atmosphere, which is the very picture of a quiet French countryside. House hunters can either choose to live in Basse-Normandy and enjoy the view of charming valleys, or stay at Haute-Normandy, which is reputed for its excellent cheese and cider apples.

FRANCE

Corse

COUNTRY INFORMATION OFFICIAL NAME

Republique of Francaise or French Republic

CAPITAL CITY

Paris

CURRENCY

Euro, CFP Franc

LANGUAGE

French

TOTAL AREA

643, 801 sq km

POPULATION

65, 951,611 (as of July 2013)

REGION

Europe

TIME ZONES

GMT/UTC +1 (ST) GMT/UTC +2 (DST)

DIALLING CODE

33

GDP

USD $2.609 trillion (5th)

GDP PER CAPITA

(Nominal; 2012 IMF estimate)

USD $41, 141

HUMAN DEVELOPMENT INDEX

0.893 (very high)

(Nominal; 2012 IMF estimate)

PROPERTY BASICS AVERAGE PRICE

USD $14,696

RENTAL YIELD

2.99%

RENT PER MONTH

USD $4,397

CAPITAL GAINS TAX

33.30%

SOURCE GLOBAL PROPERTY GUIDE

French Riviera – Popularly known as an artist’s haven because of its glamour and romantic scenery.

This picture-perfect, sun-splashed region is noted for its blue waters, warm weather and crowded beach towns. According to RightMove, the French Riviera is one of the most luxurious and extravagant places in the world. But besides casinos and beach resorts that usually surround properties in the French Riviera, there are also certain villages such as Beaulieu, Menton and Cap Ferrat that offer a tranquil atmosphere with picturesque cottages to match.

Loire Valley – Buying a property in this region means being surrounded by excellent wine and delectable cuisine. Its Chateaux is said to be the most beautiful in the world, which is just perfect for those who fancy living in an enchanting countryside with lush gardens, exceptional landscape, and fertile and green rivers.

BUYING PROCESS Buying a real estate property in France can be quite straightforward once you’ve come to grips with the formalities that a buyer has to follow. But these can be easily dealt with the help of real estate agents or a Notaire as well as lawyers. Also, there are no restrictions on foreign ownership, thus foreigners can freely choose and acquire a property anywhere in France.

When it comes to the buying process, it is basically divided into the following steps:

Overseas buyers have always been enamored of Paris because of its grandeur and exuberance. But there are other areas too that can be a good choice for house hunters.

Brittany – Known for its numerous megalithic monuments as well as its stunning islands and coastline.

Not only is it home to popular summer resorts and golf courses, but also a mecca for architecture

2. Signing of initial contract There are two options involved in the initial contract of sale (compromis de vente) which constitutes a commitment to sell or buy. One is promesse unilatérale de vente (observe

France is one of the most wonderful countries in the world. Besides the wide array of property ranging from traditional to luxury, the house prices are generally cheaper compared with that of UK’s. In addition, the country’s buying condition at present is favourable to overseas buyers, thanks largely to the ultra-low rates coupled with soft property prices.

74

4.Notary investigates title Pre-completion searches are done after the signing of contract and paying the initial deposit. These include land registry searches, local authority searches, planning permission searches and the like. Also if the property is less than 10 years old, the seller is still legally liable for defects within the given time frame.

5.Signing the deed Once everything is in place, the Notaire will lay out and read the final deed of sale.

Afterwards, both parties as well as the Notaire will sign it, followed by the turnover of keys and payment of balance. However, it usually takes at least six to eight weeks before the buyer receives the proof of ownership paper and copy of the deed, because it still has to be registered in the French administration system.

SOURCE RIGHTMOVE

1. Hire an attorney In France, a Notaire is usually hired to assist both the buyer and seller with the drafting of relevant documents and authenticate the transactions made. However, it is ideal to still enlist the help of an attorney, particularly for a buyer. It should be noted that the Notaire’s only obligation is to ensure that a sale has been made in compliance to French law, but would not explain in detail the problem areas that may likely arise.

On the other hand, a lawyer would guide you to fully understand the legal documents and provide legal advise on the merits and demerits of the property.

Besides this, he will also examine and discuss in detail the legal documentation, particularly the complex inheritance laws in France before you sign anything.

WHERE TO BUY

3. Pay the deposit After signing the compromis de vente, the purchaser are required to shell out the initial deposit of 10% of the property’s price. The real estate agent or Notaire usually holds the deposit and gives it to the seller even if the buyer backs out. But in cases where the buyer’s mortgage is not approved within 45 days, the buyer could get the deposit back as the contract will be considered null and void.

GETTING IN VISA REQUIREMENTS The type of visa that you need to apply for depends on the duration of your stay in France. For instance, if you only intend to stay for at least 90 days, then you should get a short-stay visa.

Longer stay on the other hand requires a long-stay visa, which can be obtained from your region’s French consulate.

However, if your country is part of the European Union or European Economic Area, you can freely enter France and stay at any length of time even without a tourist visa.

AIRPORTS AND AIRLINES As France is one of the most popular tourists destinations in the world, international airports are available in all major cities while regional airports are accessible from almost any part of the country. Among the most important international airports that serve as a gateway for tourists around the world are: Charles De Gaulle Paris International Airport: www.aeroportsdeparis.fr Paris Orly International Airport: www.aeroportsdeparis.fr Bordeaux International Airport: www.bordeaux.aeroport.fr Lyon Saint-Exupery International Airport: www.lyonaeroports.com For more detailed guides, visit www.propertylife.asia/countryguides

© (TOP) ROG01/FLICKR

PARIS

in the North) which requires a 5% to 10% penalty if the conditions therein are not executed accordingly.

This also allows the buyer to sue the seller for specific damages if the latter backs out. The other is promesse synallagmatique de vente (common in the South), which ensures the commitment of the purchaser to complete the sale. Under this option, the seller is also given the right to compel the purchaser to buy the property.

COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

Japan View of Shinjuku skyscrapers and Mount Fuji as seen from the Bunkyo Civic Center in Tokyo

COUNTRY INFORMATION

PROPERTY BASICS

OFFICIAL NAME

Japan

AVERAGE PRICE

USD $11, 466

CAPITAL CITY

Tokyo

RENTAL YIELD

5.53%

CURRENCY

Yen (JPY)

RENT PER MONTH

USD $6, 341

LANGUAGE

Japanese

CAPITAL GAINS TAX

15.00%

TOTAL AREA

377, 915 sq km

POPULATION

128 Million (as of 2012)

REGION

South-East Asia

TIME ZONES

UTH+9h

SOURCE: WWW.GLOBALPROPERTYGUIDE.COM/ASIA/JAPAN

WHERE TO BUY

DIALLING CODE

+81

GDP

USD $5.964 trillion (third largest in the world)

(Nominal; 2012 IMF estimate)

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $46, 736 (14th)

HUMAN DEVELOPMENT INDEX 0.912 (very high) SOURCE: WWW.CIA.GOV/LIBRARY/PUBLICATIONS/THE-WORLD-FACTBOOK/GEOS

JAPAN Sapporo

Japan is one of the few countries that allow foreigners to own a land. In fact, they can purchase a property even without setting foot on the country. As there are no restrictions over land ownership, property titles can be registered to a foreign address. Hence, foreigners can freely purchase or sell land, apartments, buildings, and even engage in real estate business. However, with Japan’s huge population, insufficient land supply is expected. This is evident in metropolitan Tokyo where most of the areas are extremely dense.

More so, property buyers should also consider the geographic location of Japan. It is noted that since Japan is within the Pacific Ring of Fire, it is prone to earthquakes and volcanic activities. Taking this into account, an extensive research should be done before deciding where to buy. Aside from that, buyers should also consider the amount that they are willing to spend given the fact that housing costs in Japan are relatively expensive despite the cooling measures imposed by the government.

TOKYO Ranks fourth among the most popular places in the world for real estate investment. This is undoubtedly a good place to live in as it is the centre of Japan’s commercial and financial activity.

Niigata

Fukushima

TOKYO

Nagoya

KANTO The most developed, urbanised and industrialised region in Japan. It also accounts for the largest share of GDP in the country. Though highly industrialised, it is home to some of natural wonders such as mountains, hot springs, and semi-tropical islands

BUYING PROCESS FINANCE It is important to consult with your bank about finance.

SEARCH Check the recent sales, property values and relative prices of your target property .

Osaka Hiroshima

© (BELOW) HENRIK MID0RI/SXC (TOP) MORIO/FOTER

Fukuoka

The view of Osaka river during cherry blossom season.

INSPECTIONS This should be done to better understand the market and make the right decision

APPLICATION Once a property has been chosen, submit an ‘application to purchase’. Although not legally binding, this letter contains your intent to buy a property at a certain price.

EXPLANATION OF MATTERS It is important to hire an agent so that once the price is agreed on, the former can investigate the details of the property and give you an ‘Explanation of Important Matters’. It contains all the important terms in the document that you need to review prior to executing the contract.

EXECUTING THE CONTRACT Once a purchase contract is drafted, a 10% deposit is usually expected from the buyer before the contract date.

LOCATION APPLICATION Upon completion of contract, you can make the formal loan application, which usually takes a month or so for final approval.

However, if the mortgage is not approved, the contract will be terminated at no cost.

FINAL SETTLEMENT The buyer transfers the remaining amount to the seller’s account, who, in turn, gives the title of the property and the keys. As for title registration, there will be corresponding government fees and taxes, which takes around 14 days to complete.

SOURCE: HTTP://HOUSINGJAPAN.COM/REAL-ESTATE-TOKYO/BUYING-GUIDE/

GETTING IN It is important to obtain a visa in advance if you wish to enter or stay in Japan. The category of visa that you will need to apply for depends on the duration of your stay. For short visits, foreigners should have a temporary visitor visa or tourist visa, which can be obtained at the nearest Japan Embassy/Consulate. On the other hand, foreigners who plan to stay longer or wish to work in Japan should apply for a long-term visa.

For more information about the Japanese visas, go to www.mofa.go.jp

Furthermore, there are countries that have visa exemption arrangements with Japan. Unless they intend to stay longer, citizens of these countries need only to present a passport upon arrival.

To view the list of countries with visa exemptions, click www.mofa.go.jp

AIRPORTS AND AIRLINES Most of the major airlines and airports fly to Japan so it’s literally accessible from across the globe via air travel. The country’s two leading airlines, Japan Airlines (www.jal.com) and All Nippon Airways (www.ana.co.jp ) connect to wide range international destinations.

For more information about some of the most important international in Airports, visit the following sites: Tokyo’s Narita Airport: www.narita-airport.jp Osaka’s Kansai Airport: www.kansai-airport.or.jp Tokyo’s Haneda Airport: www.haneda-airport.jp Nagoya’s Central Japan Airport: www.centrair.jp For more detailed guides, visit www.propertylife.asia/countryguides

75

COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

Malaysia Petronas Towers in Kuala Lumpur

allowed to buy properties costing less than MYR500,000 (US$160,102). This is to prevent inflationary pressures in the lower end of the property market. Visit www.mm2h. gov.my for more details.

Areas popular to foreign buyers are Kuala Lumpur, Johor Bahru and Penang (although Penang has its own restrictions). Other cities, such as Ipoh and Kota Kinabalu, and resort islands, such as Langkawi, are increasingly attractive as well.

COUNTRY INFORMATION OFFICIAL NAME

Federation of Malaysia

CAPITAL CITY

Kuala Lumpur

CURRENCY

Ringgit (USD $1 = MYR3.12)

LANGUAGES

Bahasa Malaysia

TOTAL AREA

329,847 sq km

POPULATION

29,179,952 (July 2012 est.)

REGION

South-East Asia

TIME ZONES

UTC +8

DIALLING CODE

+60

GDP (Nominal; 2012 IMF estimate)

USD $307.18 billion

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $10,085

HUMAN DEVELOPMENT INDEX

0.769 ( high)

Mount Kinabalu

GETTING IN VISA REQUIREMENTS Malaysia currently offers visa on arrival to citizens of 66 countries for stay of up to 90 days. In addition, citizens of ASEAN member countries (Cambodia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam) plus 83 others can enter the country visa-free for stays of up to 30 days. For a complete list of these countries, visit www.kln.gov.my/ web/guest/requirement-for-foreigner.

AIRLINES AND AIRPORTS Kuala Lumpur International Airport is Malaysia’s major point of entry. Currently handling 35 million passengers a year, the airport is the world’s 14th busiest in terms of international passenger traffic and Asia’s fifth busiest international airport. It is the hub of flag carrier Malaysia Airlines, which has regular scheduled flights to 87 destinations around the world, as well as the popular low-cost carrier AirAsia.

PROPERTY BASICS AVERAGE PRICE

USD $2,182 psm

RENTAL YIELD

7– 8.7%

RENT PER MONTH

USD $1,356

CAPITAL GAINS TAX

N/A

(usually a 120-sqm apartment in premier city centres)

(usually a 120-sqm apartment in premier city centres)

SOURCE GLOBAL PROPERTY GUIDE

MALAYSIA

BRUNEI

Kuala Lumpur

MALAYSIA

SINGAPORE

Kuala Lumpur International Airport

INDONESIA

WHERE TO BUY Outside Singapore, Malaysia is South-East Asia’s most transparent real estate market according to Jones Lang LaSalle. As a result, buying a property here is straightforward and legally sound. Foreigners are allowed to purchase leasehold and freehold properties.

However, it still pays to understand how the country’s market works and what is needed.

In some parts of the country, it is only the local people and other indigenous groups who are allowed to buy and sell land or property. Therefore, if one is considering buying a lot upon which to build, it is vital you check this ahead of signing any contracts.

Many foreigners who come to Malaysia buy property under the Malaysia My Second Home (MM2H) programme, whose intention is to encourage foreigners to move to or spend a long time in Malaysia. The programme offers a number of incentives: a ten-year residence permit, tax-free car purchase, and tax-free income from outside Malaysia.

The programme’s basic rule is that foreigners are not

76

Penang

BUYING PROCESS The following is a very high-level overview of the process of buying property: 1 After identifying the property to purchase, hire a local lawyer to negotiate the price and draft an offer letter to the seller.

2 Upon signing the offer letter, pay 2% of purchase price.

3 Pay the additional 8% after the Sales and Purchase agreement is drafted and signed.

4 Apply for State Authority Consent.

5 The remainder of the purchase price is paid (cash or mortgage).

6 The Sales and Purchase agreement is sent to the land registry and the title deeds are transferred to the buyer’s name, subject to approval of the State Authority.

Numerous Asian airlines also fly from their respective hubs to the airport, most notable of which are Cathay Pacific (Hong Kong), China Airlines (Taipei), China Eastern (Shanghai), China Southern (Guangzhou), Emirates (Dubai), Etihad (Abu Dhabi), Garuda Indonesia (Jakarta), Japan Airlines (Tokyo), Korean Air (Seoul), Qatar Airways (Doha), Singapore Airlines (Singapore), Thai Airways International (Bangkok) and Vietnam Airlines (Hanoi and Ho Chi Minh City). For more information, visit klia.info/airlines.htm.

The main point of entry in the eastern states of Sabah and Sarawak is Kota Kinabalu International Airport.

Asiana Airlines and Korean Air have scheduled flights from Seoul to the city, Dragonair from Hong Kong, and SilkAir from Singapore.

For more detailed guides, visit www.propertylife.asia/countryguides

COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

Philippines Manila skyline

COUNTRY INFORMATION

GETTING IN

OFFICIAL NAME

Republic of the Philippines

CAPITAL CITY

Manila

CURRENCY

Philippine peso (US$1 = PHP40.69)

LANGUAGE

Filipino, English

TOTAL AREA

300,000 sq km

POPULATION

103,775,002 (July 2012 est.)

REGION

South-East Asia

TIME ZONES

UTC +8

DIALLING CODE

+63

GDP

USD $240.66 billion

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $2,345

HUMAN DEVELOPMENT INDEX

0.644 (medium)

(Nominal; 2012 IMF estimate)

MANILA

Cebu

PROPERTY BASICS AVERAGE PRICE

USD $3,204 psm

RENTAL YIELD

8.62%

RENT PER MONTH

USD $2,761

CAPITAL GAINS TAX

32%

(usually a 120-sqm apartment in premier city centres)

(usually a 120-sqm apartment in premier city centres)

SOURCE GLOBAL PROPERTY GUIDE

BUYING PROCESS WHERE TO BUY According to Jones Lang LaSalle, approximately 154,000 condominium units are expected to be completed between 2012 and 2016. This is in stark contrast to the 7,000 completed by the turn of the millennium. The country’s property boom is being filled by genuine demand from end-users, which is a result of improved economic outlook, rapid growth in foreign investment and reforms pushed by Benigno Aquino’s administration. According to Colliers, prime residential properties in the capital Manila are also likely to increase by 9% in 2013. Much of these are located in scores of central business districts and new developments mushrooming across the city, such the Rockwell Center, the old CBD and Century City in Makati, The Fort in Taguig, Ortigas Center, and Eastwood in Quezon City.

Outside the capital are both landed and non-landed dwellings available for purchase of foreign nationals, such as Ayala Land’s Kasa Luntian in the picturesque Tagaytay 50 kilometres south-east of Manila, and Greenfield Estates, a residential and golf development located on the slopes of Mount Makiling in Laguna Province.

Coron, Palawan

Foreigners cannot own land in the Philippines (unless married to a Filipino). However, they can purchase condominium units or apartments. Businessmen and other investors can enter into a contract with Filipino colleagues for part ownership and divide the property.

FORMING A CORPORATION As an entity recognised

by Philippine laws to act as an individual, corporations are allowed to borrow, lease and purchase property. In the case of a foreigner buying property with a corporation, the corporation must have at least five people and must be at least 60% owned by a Filipino citizen (or citizens).

NON-LANDED PROPERTIES Foreigners are allowed to buy condominium units as long as foreign ownership within a condo development will not exceed 40%.

LEASEHOLD Finally foreign buyers can enter into a long-term leasehold contract for a plot of land. The lease can have an initial 50-year contract, which can be renewed for another 25 years. Any property built on that land is legally owned by the foreign buyers.

Laoag, Ilocos Norte

VISA REQUIREMENTS Nationals of ASEAN and EU member-countries, Japan, Australia, New Zealand, and the USA, among others, who are travelling to the Philippines for business or tourism are allowed to enter the country without visas for stay not exceeding 21 days.

They, however, should hold valid return tickets for their return journey and their passports must be valid for a period of at least 6 months. For a complete list of these countries, go to www.dfa.gov.ph.

In addition, nationals of Brazil and Israel are allowed to enter the Philippines without a visa for a stay not exceeding 59 days, while holders of Hong SAR, Macau SAR, British National Overseas, and Portuguese passports (only those issued in Macau) can enter the Philippines without a visa for stays not exceeding 7 days.

AIRPORTS AND AIRLINES Air transportation is the primary way to enter the Philippines. The country’s main international gateway is Manila’s Ninoy Aquino International Airport (www.manila-airport.net) and, to a lesser extent, Clark International Airport (www.dmia.ph) located in a former US military base in Pampanga.

Flag carrier Philippine Airlines (www1.philippineairlines. com) flies regularly from Manila to many regional airports across the archipelago, including Cebu, Davao and Kalibo, in addition to regular scheduled flights to cities across Asia, Oceania, and North America (Hong Kong, Singapore, Bangkok, Kuala Lumpur, Beijing, Jakarta, Bali, Tokyo, Osaka, Seoul, Melbourne, Sydney, San Francisco, Los Angeles, Toronto and Vancouver).

Boracay Island

Other regional airports that also have international flights include Mactan International in Cebu and Francisco Bangoy International in Davao City. Regional airports also serve Laoag City, Kalibo (near the island resort of Boracay), Bacolod, Iloilo, and Cagayan de Oro city, among others.

LAND About one-third of roads in the Philippines are paved. Car rental is available, which is best organised with a reputable agency or through your hotel. Driver licences issued abroad can be used for up to 90 days.

Three metro lines serve the Metro Manila area. The first line called LRT 1 has 20 stations from Pasay City in the south to Quezon City in the north and runs 20 kilometres over fully elevated track along Taft and Rizal Avenues in Manila towards EDSA in Quezon City. The second line has 11 stations and runs from Recto Avenue in downtown Manila to Pasig City in the eastern fringes of the metropolis. The third line has 13 stations that runs over EDSA, Metro Manila’s main thoroughfare.

For more detailed guides, visit www.propertylife.asia/countryguides

77

COUNTRY GUIDE J U N E - J U LY 2 0 1 3

Singapore Downtown Singapore’s Marina Bay

COUNTRY INFORMATION Republic of Singapore

OFFICIAL NAME CAPITAL CITY CURRENCY

Singapore dollar (S$1 = US$0.80)

LANGUAGES

English, Malay, Mandarin and Tamil

TOTAL AREA

710 sq km

POPULATION

5,353,494 (July 2012 est.)

REGION

South-East Asia

TIME ZONES

UTC +8

DIALLING CODE

+65

GDP

USD $267.9 billion

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $49,271 (12th highest in the world)

HUMAN DEVELOPMENT INDEX

0.895 (very high)

(Nominal; 2012 IMF estimate)

SINGAPORE

PROPERTY BASICS AVERAGE PRICE

USD $16,350 psm

RENTAL YIELD

2.95%

RENT PER MONTH

USD $4,817

CAPITAL GAINS TAX

N/A

(usually a 120-sqm apartment in premier city centres)

BUYING PROCESS There are two types of properties foreigners can purchase in Singapore: non-restricted and restricted.

Restricted properties are those that require approval from the government, which may include land, landed properties and Housing Development Board flats (HDB). The Residential Property Act, however, regulates all foreign ownership in Singapore. It allows foreigners to purchase apartments in non-condominium developments without the need for government approval. To obtain approval to purchase land or landed properties, a form is available for download at the Singapore Land Authority website (www.sla.gov.sg).

The following are the usual steps in buying properties in Singapore.

1 In order to protect your interests, engage the services of a professional estate agent or specialty attorney.

2 Option to purchase agreement requires 1% of the purchase price and is usually prepared by the seller’s agent or attorney. This agreement allows 14 days consideration before proceeding with the purchase.

3 Offer to purchase agreement is prepared by the buyer’s agent or attorney and is an alternative to the option to purchase agreement.

4 Inspections are stated in the option to purchase agreement, which allows the buyer to have a professional inspection of the property before completing the sale.

5 Close of sale is under the jurisdiction of the attorneys and usually takes 8–10 weeks to complete.

GETTING IN VISA REQUIREMENTS All travelers need a passport valid for at least 6 months before entering Singapore.

Passports must have blank visa pages. It is also advisable to confirm whether a transit visa is required for any connections.

Nationals of countries belonging to either Assessment Level I or II categories specified by the Singapore government will require a visa. These countries include Afghanistan, Algeria, Bangladesh, Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Egypt, Georgia, India, Iran, Iraq, Jordan, Lebanon, Libya, Morocco, Myanmar, Nigeria, People’s Republic of China, Pakistan, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Yemen and Palestine. Visit www.mfa.org.sg for more details.

AIRPORTS AND AIRLINES Singapore Changi Airport (www.changiairport.com), widely regarded as one the world’s best, is Singapore’s main international gateway. It serves more than 100 airlines, over 6,000 flights a week to more than 220 destinations. The airport has won 390 awards since 1981, including 23 ‘Best’ awards in 2011.

The city-state’s flag carrier is government-owned Singapore Airlines, which has a strong presence in South-East Asia, East Asia, South Asia and the ‘Kangaroo Route’ markets and flies to about 62 destinations around the world. In 2012, the airline carried around 18 million passengers.

Terminal 3 of Singapore Changi Airport

Marina Bay Sands

(usually a 120-sqm apartment in premier city centres)

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY Driven by an efficient legal system, impeccable infrastructure and strong and stable economy, Singapore’s property market is among the world’s priciest. According to Knight Frank, the value of real estate in Singapore surged 50.5% from the last quarter of 2006 to the same period in 2011.

Quite expectedly, the city-state’s Central Region, which includes the urban planning areas of Downtown Core, Marina East, Marina South, Newton, Orchard, Outram, River Valley, Rochor, and Singapore River, has some of the island’s priciest real estate. These areas, however, are at the very centre (or very close to) of Singapore’s cultural, economic, and political activities.

Singapore’s other regions (and their largest towns): East (Bedok), North (Woodlands), North-east (Hougang) and West (Jurong West). It is the Urban Redevelopment Authority’s policy to create partially self-sufficient towns within each of these regions to reduce congestion and traffic strain in the Central Area. As a result, these regions have their own commercial areas that offer facilities and amenities (such as hospitals, schools and shopping areas) comparable to those in the Central Area.

78

LAND Transportation in Singapore is extremely easy.

The roads are modern, paved and well posted. Buses and taxis abound and take you anywhere on the island.

The city-state’s highly efficient Mass Rapid Transit (MRT) System has a network of 102 stations with almost 150 kilometres of line on standard gauge.

Merlion Park

For more detailed guides, visit www.propertylife.asia/countryguides

Temples at the banks of the Chao Phraya River in Bangkok.

COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

Thailand

AND CHECK A final check at the property is required before the seller and buyer meet up to sign all the documentation. This is usually done at the real estate office or at a lawyer’s office. If the purchaser is obtaining a mortgage, then there will also be a requirement to provide documentation from the bank as the land title will be put in the bank’s name.

Pattaya

COUNTRY INFORMATION OFFICIAL NAME

Kingdom of Thailand

CAPITAL CITY

Bangkok

CURRENCY

Baht (US$1 = THB29.36)

LANGUAGE

Thai

TOTAL AREA

513,120 sq km

POPULATION

67,091,089 (July 2012 est.)

REGION

South-East Asia

TIME ZONES

UTC +7

DIALLING CODE

+66

GDP

USD $376.9 billion

GDP PER CAPITA

USD $5,395

(Nominal; 2012 IMF estimate) (Nominal; 2010–2011 IMF estimate)

GETTING IN

HUMAN DEVELOPMENT INDEX 0.682 (medium)

Chiang Mai

BUYING PROCESS

LAOS

Chiang Mai

THAILAND BANGKOK VIETNAM

Pattaya

CAMBODIA

MALAYSIA

PROPERTY BASICS AVERAGE PRICE

USD $3,300 psm

RENTAL YIELD

5.55–10.15%

RENT PER MONTH

USD $2,413

CAPITAL GAINS TAX

37%

(usually a 120-sqm apartment in premier city centres)

(usually a 120-sqm apartment in premier city centres)

SOURCE GLOBAL PROPERTY GUIDE

WHERE TO BUY Foreigners looking to get a piece of Thai property tend to choose either the bustling capital of Bangkok, the island-resorts in the south (Phuket and Ko Samui), resort cities along the coast (Pattaya and Hua Hin), or the idyllic Chiang Mai in the north.

Thai laws do not allow land to be sold to foreign buyers as freehold, although the property sitting on it can be.

As the land will only be sold to foreign investors as leasehold property, developers will usually lease the land to the owner of the property for 30 years, which can be extended for a further 30-year period. Contracts to this effect will usually also state that if the current Thai laws regarding foreign investors changes, then the option will be there to buy the lease.

Many expats and other foreign investors buy condominiums in Thailand as the process to do so is very simple. Thai law allows foreign investors to own the property completely (freehold) although most buildings are only allowed to have 49% of its condos owned by non-Thai citizens.

SEEK HELP Negotiations in property purchase are usually handled by an estate agent. He or she will look into all the items included in the sale and any issues relating to leaseholds. The buyer should also hire a law firm to carry out a comprehensive title search and land survey. This is to ensure that the person selling has the title to both the property and the land on which it sits.

If you are purchasing a condo, then the title report should tell you if there are any outstanding fees on the property.

INSPECT An engineer’s inspection is recommended to ensure that the property is structurally sound and that the electrical and plumbing systems are in good working order. This inspection can help with the negotiations as if there are problems the seller can be asked to correct them before the sale is completed.

DO THE PAPERWORK The contract when you are purchasing a property will be drawn up either by the agent or the seller or even the purchaser, and this is signed by all parties once an agreement to purchase has been reached. The deposit is then paid. There is no law that states that the documentation needs to be notarised, but any copies of the documentation need to be signed to show that they are true copies of the original. Anyone who is named on the documentation needs to sign it and it should show everything that is included with the sale.

VISA REQUIREMENTS Thailand grants visa on arrival for citizens of 49 countries, including ASEAN members, Australia, the USA, the UK, and Canada, among others, for stay of up to 30 days. In addition, citizens of China, India, Saudi Arabia, and Taiwan, among others, are granted visa on arrival for stay of 15 days for THB1,000.

For a complete list of countries, visit thailand.visahq. com/.

All travellers will need a passport valid for at least 90 days and that has adequate unused visa pages.

AIRPORTS AND AIRLINES Thailand’s main point of entry is Bangkok’s Suvarnabhumi Airport (www. suvarnabhumiairport.com). Handling 47.9 million passengers in 2011, the airport is the sixth busiest in Asia. It is the hub of the country’s flag carrier Thai Airways International, where it has regular scheduled flights to 75 destinations in 35 countries. Other carriers that operate from the airport are Bangkok Airways and Orient Thai Airlines.

Numerous airlines fly from their respective hubs to the airport, including Aeroflot (Moscow), Air China (Beijing), Air France (Paris), British Airways (London), Cathay Pacific (Hong Kong), China Airlines (Taipei), Emirates (Dubai), Garuda Indonesia (Jakarta), and KLM (Amsterdam), among others.

Bangkok’s older airport, Don Mueang International, was reopened in 2007 after a major facelift. The airport now serves a number of low-cost carriers, including AirAsia and its subsidiaries Thai AirAsia and Indonesia AirAsia, which have regular scheduled flights to Kuala Lumpur, Jakarta, Denpasar (Bali), Bangalore, Chennai, Ho Chi Minh, Hong Kong, and Macau, among others.

Thailand’s second busiest airport is Phuket International, which serves the tourist island of Phuket. Numerous airlines have regular scheduled flights from their respective hubs, including Aeroflot (Moscow), Air China (Beijing), China Airlines (Taipei), China Eastern (Shanghai), China Southern (Guangzhou), Dragonair (Hong Kong, and SilkAir (Singapore), among others.

Bangkok Suvarnabhumi Airport

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79

COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

United Kingdom The City of London, the UK's financial centre

WHERE TO BUY

COUNTRY INFORMATION OFFICIAL NAME

United Kingdom of Great Britain and Northern Ireland

CAPITAL CITY

London

CURRENCY

Pound sterling (£1 = USD $1.51)

LANGUAGE

English (official)

TOTAL AREA

243,610 sq km

POPULATION

64,047,162

REGION

Western Europe

TIME ZONES

UTC +0

DIALLING CODE

+44

GDP

USD $2.434 trillion (6th largest in the world)

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $38,811 (22nd highest in the world)

HUMAN DEVELOPMENT INDEX

0.875 (very high)

(Nominal; 2012 IMF estimate)

There are several cities in the UK that serve as financial hubs and business centres, and often include the best options for property investors, especially those with an aim to letting out the property for an income. The most obvious is London, although Edinburgh is also an excellent market, as are Bristol and Cambridge. Some cities are not for the faint of heart when it comes to investment, such as Liverpool, Newcastle and Glasgow, although deals are to be found for an investor who can afford to park their money and wait for returns.

Countryside options are also popular investments in the UK, with ideal locations found all over the south and southwest, including Wales, as well as the Midlands, Yorkshire, and islands such as the Isle of Wight.

Glasgow’s Clyde Arc

Oxford Edinburgh Northern Ireland

UNITED KINGDOM

LONDON

PROPERTY BASICS AVERAGE PRICE

USD $25,445 psm

RENTAL YIELD

3.43%

AVERAGE RENT PER MONTH

USD $8,737

CAPITAL GAINS TAX

28%

(usually a 120-sqm apartment in premier city centre)

(usually a 120-sqm apartment in premier city centre)

SOURCE GLOBAL PROPERTY GUIDE

AVERAGE PROPERTY PRICE SOURCE RIGHTMOVE.CO.UK

80

USD $305,645

BUYING PROCESS Long considered a safe haven for prime-property investment, the UK’s real estate market is open to foreign investors.

GET APPROVAL First, secure approval from a lending institution for financing (if paying cash, this is not necessary, but it will still be necessary to arrange for proof of ability to pay).

ORGANISE A TEAM OF PROFESSIONALS After finding an estate agent and searching for the property, hire a solicitor (attorney/lawyer) to draw up the paperwork for making an offer to the seller. During or after the negotiations, hire a chartered surveyor/ valuer to assess the property.

SIGN AND SETTLE The valuation and survey documents will be required to finalise the mortgage, if used, and for the final contracts and negotiations.

Your solicitor will draw up the final contracts and once signed, it’s time to move in.

GETTING IN VISA REQUIREMENTS For those who require a visa to visit the UK, there are tourist, family, study, sports, entertainer and business visas available, as well as transit visas.

Citizens of the EU and Switzerland will find visiting and applying for residency easier than other nationalities (but official permission may still be required).

Additional information for specific countries and reasons for visiting can be found at: ukba.homeoffice.gov.uk AIRPORTS AND AIRLINES All forms of transportation in the UK are excellent, ranging from paved roads, car hire companies, taxi services, bus and rail terminals, air travel and ferry service to most of the thousands of surrounding islands. Air travel especially is convenient in the UK with the many smaller, independent airports operating through the country and the islands.

There are 471 airports and airfields scattered across the entire UK, 334 of which have paved runways. The country’s busiest – London Heathrow Airport (www. heathrowairport.com) – is also world’s busiest in terms of traffic volume of international passengers (more than 64.6 million in 2011). London’s second major airport is Gatwick, which served more than 34 million passengers in 2012. Manchester Airport, meanwhile, is the UK’s third busiest, serving more than 18 million passengers every year. Other major airports include London Stansted in Essex, Birmingham, Cardiff, Edinburgh, and Belfast.

The UK’s largest airline, British Airways (www. britishairways.com), has a fleet size of 256 aircrafts and flies to 169 destinations worldwide. Other important airlines include Virgin Atlantic, BMI, easyJet, Jet2, and Thomson Airways, among others.

LAND The UK’s radial road network is composed of 46,904 km of main roads, 3,497 km of motorways, and 344,000 km of paved roads.

The National Rail network of 16,116 km route in Great Britain and 303 route km in Northern Ireland carries over 18,000 passengers and 1,000 freight trains daily.

There are also urban or metro rail networks in London, Manchester, Birmingham, Edinburgh, Glasgow, Cardiff, Belfast, Leeds, and Liverpool.

For more detailed guides, visit www.propertylife.asia/countryguides

COUNTRY GUIDE A U G U S T- S E P T E M B E R 2 0 1 3

United States of America New York City’s Brooklyn Bridge

COUNTRY INFORMATION

Alaska

OFFICIAL NAME

United States of America

CAPITAL CITY

Washington, DC

CURRENCY

US dollar

LANGUAGE

English

TOTAL AREA

New York WASHINGTON DC

9,826,675 sq km (3rd or 4th largest in the world)

313,847,465 (July 2012 est.)

REGION

North America

TIME ZONES

UTC –5 to –10

DIALLING CODE

+1

GDP

USD $15.6097 trillion (world’s largest)

GDP PER CAPITA (Nominal; 2010–2011 IMF estimate)

USD $48,328 (14th highest in the world)

HUMAN DEVELOPMENT INDEX

0.937 (very high)

Hawaii

PROPERTY BASICS AVERAGE PRICE

USD $13,377 psm in premier city centres

RENTAL YIELD

4.7%

RENT PER MONTH

USD $6,286

CAPITAL GAINS TAX

5%

BUYING PROCESS America represents one of the safest and most transparent property markets in the world. All properties for sale are listed, by law, in a common database (MLS) that anyone, including all real estate agents and the public at large, can access at any time.

ARRANGE FINANCING The first step is to either get pre-approval for a mortgage or loan, or to assemble any paperwork that shows you have the purchasing power to invest in property. No real estate agent or property seller will give an investor the time of day without proof that they have to means to go through with a purchase.

GET A LAWYER After selecting a property, contact a real estate attorney. Although this is not required, and real estate agents in America are certified and able to provide legal contracts, it is nevertheless always recommended that you have an attorney at least review all contracts you sign.

SOURCE GLOBAL PROPERTY GUIDE

AVERAGE PROPERTY PRICE

Chicago

Los Angeles

POPULATION

(Nominal; 2012 IMF estimate)

UNITED STATES OF AMERICA

USD $180,800

SOURCE YCHARTS NYC

WHERE TO BUY The most popular destinations for foreigners buying property in America are New York (Manhattan and the Hamptons on Long Island), Miami and California, especially Los Angeles and San Francisco.

However, Washington D.C. is another popular location, as is Arizona (for the desert climate) and Colorado (for the skiing). Additionally, the cities of Chicago and Atlanta have stable property markets with strong rental yields.

The location of course depends entirely on what you want from your investment and whether you intend on renting it out or living in it yourself. There are many fantastic deals to be found in the ‘heartland’ of America, from Ohio to Wyoming, for every lifestyle imaginable.

San Francisco

OFFER Make an offer that is contingent upon the results of an inspection and/or formal survey, and then hire a licensed professional to carry out the inspection or survey. If there is anything wrong with the property, you can either withdraw the offer or renegotiate the terms.

SEARCH At this point, a title search is performed to ensure that the property is truly free and clear to be sold. Contact your mortgage lender if applicable, as they will require copies or originals of the survey/inspection reports and title search be put in the bank’s name.

CLOSE Your real estate agent will arrange a meeting called the closing which will include the sellers, a bank representative, a public notary, you the buyer and your attorney if desired. All contracts are signed, deposit money is paid to the seller, and the remainder of the balance owed is also paid.

It is best to consult the nearest US Embassy or visit travel.state.gov for further information specific to your needs.

For more information on visa application, visit www. immi.gov.au/visitors/.

AIRPORTS AND AIRLINES Deregulated since 1978, the US civil airline industry is entirely privately owned, though most major airports are publicly owned. The world’s four largest airlines in terms of passengers carried are US-based: Delta Airlines, United Airlines, Southwest Airlines and American Airlines.

Chicago

In addition, of the world’s 30 busiest passenger airports, 16 are in the USA, including the busiest, HartsfieldJackson Atlanta International Airport. Each major city and several mid-to-large cities for each state in America will have either an international or national airport.

The following are the USA’s major international gateways: JFK-NEW YORK www.panynj.gov/airports/jfk.html MIAMI INTERNATIONAL AIRPORT www.iflymia.com LOS ANGELES INTERNATIONAL AIRPORT www.lawa.org NEWARK LIBERTY INTERNATIONAL AIRPORT (NEW YORK)

www.panynj.gov/airports/newark-liberty

GETTING IN VISA REQUIREMENTS The need for a visa depends on your citizenship and reason for your visit to the USA. There are visitor, study, work and immigration visa available.

In some cases, no visa is required for short-term visits for holidays or pleasure. In other cases, a visa application is a simple form to send to the US Consular and a reply will be received within a week or two. However, there are some cases in which a visa application may take several months to approve and may even require an interview.

O’HARE INTERNATIONAL AIRPORT (CHICAGO) www. flychicago.com/ohare/en/home/Pages/default.aspx LAND The USA is the world’s second largest automobile market and has the highest rate of percapita vehicle ownership in the world (765 vehicles per 1,000 Americans). It has 13 million roads, including the world’s longest highway systems. While its railway system is extensive, mass transit accounts for only 9% of total US work trips. However, ridership on Amtrak, the national intercity passenger rail system, grew by almost 37% between 2000 and 2010.

For more detailed guides, visit www.propertylife.asia/countryguides

81

FEATURE A UGUST — SEPTEM BER 2013

The cost of the

Brazilian boom

The recent economic triumph of Brazil comes at a price— an estimated 50 million Brazilians live in inadequate housing.

By Hezron Ochiel

W

ith steady economic growth in the past years, fuelled by vast resource wealth and investment from China, and a thriving services sector, Brazil has become an attractive destination for international investments.

Latin America’s economic powerhouse – the world’s seventh wealthiest economy with a Gross Domestic Product (GDP) of US $2,223 trillion – is enjoying a sound economy, modern cities, abundant natural resources and a diversified industrial base, making it the world’s most competitive agribusiness destination.

Rapid infrastructural development across the country has helped reduce poverty levels, thus driving up household consumer spending in Latin America’s and the Caribbean’s largest and highly populated country.

Brazil is a global benchmark thanks to its steady, sustainable economic growth, social inclusion combined with sound institutions, income distribution and environmental protection; for these reasons, the World Bank forecasts that it should become the fifth largest economy by next year.

Over the past decades, unemployment levels dropped close to record lows and pay rises had outstripped inflation, partly due to big hikes to the minimum wage, but also due to a tight job market.

82

In fact, the Brazilian Institute of Geography and Statistics (IBGE) estimates that the current unemployment rate oscillates around 5%.

This means that more than half of Brazilian population has joined the middle class, a phenomenon that adds to the robustness of the domestic market and an estimated number of 40 million climbing the social ladder.

VOICE OF THE MIDDLE CLASS According to Voices of the Middle Class, a study undertaken by the Secretaria de Assuntos Estratégicos (Strategic Affairs Secretariat, SAE), more than half of Brazil’s population is categorised as middle class and they account for 46% of the country’s purchasing power.

‘The expansion of this group resulted from countrywide economic growth and reduced inequality. If these trends are maintained, an estimated 57% of the population will be in the middle class by 2022,’ said the study.

Despite robust growth, however, the country as a whole is struggling after the 2008 economic meltdown that swept the globe.

Yet two-thirds to three-quarters of families say their financial situation improved during the past year, and that they

expect it to get even better in the year ahead, according to a Brazilian research institute, the Institute for Applied Economic Research (IPEA).

LUCRATIVE HOUSING MARKET GROWTH LEAVES MANY BEHIND One sector that remains lucrative is the housing market. Unfortunately, this sector, which is fueled by population growth (especially the rising middle class and urban areas), is struggling to meet the demand for new houses.

‘Due to frequent increases in housing prices, more so in urban areas, low-income families are excluded from the regular housing market,’ said Paul Akumu, an economist lecturer and property consultant.

The continuous increase in investment opportunities in sectors like real estate, oil and gas, agribusiness, as well as upcoming major sport events -- 2014 World Cup and the 2016 Olympic Games – has made the country a safe investment destination, thus ranking among top choices on the global level.

‘There’s a psychological margin that Brazil real estate enjoys at the moment due to the oil discoveries off the coast of Rio, the World Cup and the Olympics, which makes Brazil very attractive to foreign investors at the moment,’ said Marcus Vinicius de Oliveira, executive director of Consul Patrimonial, told Global Property Guide.

‘After 2017 Brazil will still have its oil discoveries, but the World Cup and Olympics will be done with and foreign investment into Brazil will slow as a result.’

The strong housing market adversely affects the poor in Brazil, who find housing unaffordable due to high property prices. In São Paulo, based on a study by the Inter-American Development Bank (IADB), around 62% of families find it too expensive to own a house.

Home ownership stands at 75%, with only about 14% of the 42 million housing stock rented. But around 85% of all homeowners live in low-quality, self-built, single-room housing units.

A study by the João Pinheiro Foundation, a government think-tank, estimates the country's housing deficit at 5.8 million homes.

FEATURE A U G U S T — S E P T E M B ER 2013

In fact, Brazil has up to 8 million fewer residential properties than it needs, with the poorest communities feeling the impact of this housing deficit. And an estimated number of more than 50 million Brazilians live in inadequate housing.

Most of these families have an income below the minimum wage of about US $330 a month.

© MARCO-YEAH / SXC.HU; OPPOSITE PAGE: MICHELMOND / SXC.HU

URBAN POOR OUTPRICED OF THEIR OWN CITIES São Paulo is the 10th most expensive city in the world, with Rio de Janeiro in 12th position, according a recent survey.

In the State of São Paulo alone, which represents less than 3% of the national territory, the United Nations Environmental Programme (UNEP) estimates that it faces a housing shortage of 880,000 units (14% of the national deficit), concentrated mainly in the urban areas.

São Paulo's metropolitan area, the 15th most populous globally, has an estimated population of 19.8 million (based on the IBGE’s August 2011 estimate) and accounts for 37.35% of the total population.

Increasingly, housing-crisis analysts believe the problem is compounded by low wages in the low-income families living in expensive cities. This means that they cannot renovate or rebuild their properties in one step, but instead have to borrow small amounts and invest in repairs over time.

Unsurprisingly, in recent years Brazil has experienced a large jump in credit growth, which doubled from 25.8% in January 2005 to 50.6% in June 2012.

For the first half of 2012, property sales were up slightly by 2.6% on the previous year, to 11,900 units, according to the Sindicato da Habitação (Secovi-SP), and in contrast, the total sales value fell by 1.5% to USD $2.95 billion.

According to the FIPE ZAP Index of Dwelling Price Offers (12.9% adjusted for inflation) house prices in São Paulo rose by 18.8% during the year to July 2012, during the same period, price increases in Rio de Janeiro were even greater, up 19.8% (13.9% in real terms).

PRICE OF PROGRESS

Brazil is forecast to become the fifth largest economy in the world by 2014.

Yet the housing deficit is estimated at 5.8 million homes.

GOVERNMENT FINANCING UPGRADES AND REPAIRS In an effort to solve the housing crisis, the government and development partners are looking for ways to finance housing upgrades and repairs. ‘These efforts together with more local and foreign investments in the sector would eventually solve the crisis,’ said Akumu.

Consequently, the federal government has launched a program aimed at produc-

ing one million homes in two years. State level governments are also launching social housing programs to respond to the housing shortage.

In the first half of 2012, home loans increased at an annual pace of over 40%, much faster than the 18% expansion in overall credit. ‘This sharp growth is raising concern. Greater access to loan facilities has played a major role in driving prices higher’, said Akumu.

As urbanisation continues to expand, challenges of housing and thus thriving informal settlement expansions remain a nightmare. Low-income families have been forced to live in illegal settlements, with little or no access to sanitation or energy and often in risk areas affected by landslides and floods.

83

FEATURE A U G U S T — S E P T E M B ER 2013

Assisted living Outfitting a home for a person with a disability or functional limitation has reached a level far beyond wheelchair ramps, handrails and widened doors. With the proper use of available technology, these people can reduce the level of necessary outside care and realise a level of independence and self-determined daily living that, in the past, could be lost forever. BY ALBERT FONTENOT

A

ccording to a 2011 report published by the World Bank and the World Health Organisation, approximately 15% of the global population has a substantial mental or physical disability. This equates to almost 800 million people worldwide with chronic or permanent conditions that represent the entire spectrum of disabilities.

Countries with the poorest populations also tend to have the highest rates of disability – almost 20% -- and this is not unexpected. Factors such as poor nutrition, disease and a dearth of available quality medical services all contribute to the high rate of disability found in developing nations. As socioeconomic and medical advances occur, the rate should begin to go down.

Surprisingly, the percentage of people with disabilities is conversely growing in developed countries. Instead of being chiefly attributable to issues re-

lated to poverty, it has been theorised that this increase can be linked to the twin causes of disposable income and longer lifespans.

People in countries with the highest incomes per capita have diets high in fat and eat far more processed foods than their counterparts in less developed countries. Obesity rates are highest in developed countries. Consequently, disabilities attributed to contributing factors such as diabetes, stroke or heart disease are most prevalent in the most affluent nations.

At the same time, people are living longer than ever. Citizens in the most developed nations also tend to have longer lifespans than the global average, primarily due to easy access to quality medical care. This longevity brings with it the expected glut of age-related infirmities.

Arthritis, poor vision, neurological disorders, dementia and the like can create a daunting set of challenges to an aging populace.

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FEATURE A UGUST — SEPTEM BER 2013

This dramatic worldwide increase in the number of disabled and elderly people is creating a somewhat pressing demand for assisted-living spaces that can accommodate the particular needs of that demographic. When personal functional ability is decreased, more monitoring and support is required.

WHO’S RESPONSIBLE? In most countries, care of the elderly and disabled has traditionally been handled by the extended family of the individual. For example, in many Asian cultures, caring for elderly parents has long been the duty of the children. As families worldwide are being dispersed geographically in search of better educational or economic opportunities, it has become harder and harder to honour this tradition. In December 2012, China amended its laws so adult children are now legally required to visit their parents often, or run the risk of being sued.

Full-time residential care is not a feasible solution for most situations. Social and cultural dictates often are not conducive to the idea, and the ongoing cost can also be a prohibitive factor. The quality of care in such facilities can vary widely, and in many countries, there is a shortage of adequately trained medical personnel. Many long-care facilities for the elderly and disabled are run by charities and volunteers.

Because of these factors, and due to the fact that most people who are elderly or have disabilities would prefer to live as independently as possible, the onus is incumbent upon society and the marketplace to find viable alternative solutions to the challenge of providing sound care.

Advances in adaptive, assistive and communication technology have now made it possible for senior citizens and persons with disabilities to live largely independent lives in the comfort of their own homes, while at the same time providing their families with the peace of mind that comes from knowing that their loved ones are safe.

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OTHER TYPES OF ASSISTIVE DOMOTICS

Almost 800 million people worldwide have chronic or permanent conditions.

Full-time residential care is not a feasible solution for most situations.

ASSISTIVE DOMOTICS MEANS LIVING IN THE COMFORT OF HOME This segment of the home automation industry, known as assistive domotics, combines the technology used in security, energy conservation, communications, robotics and the medical field into applications that can be used by persons with disabilities. Because the applications use components from the technologies of so many different disciplines, each residential setup can be tailored to fit the specific needs of the individual.

Besides monitoring and emergency response, there are other types of assistive domotics. Automated reminder systems can be set up to prompt disabled individuals regarding any number of daily living activities. At the simplest setting, regular reminders can be broadcast over an installed intercom about doctor’s appointments or medication times. The system can also be set to announce reminders for routine daily tasks such as eating lunch, feeding pets or locking the door.

The emerging trend in assistive technology for people with a severe physical disability, such as paraplegia, stroke damage, or motor neurone disease, seems to be in the area of robotics. Simple robots can already handle certain mundane chores around the house, such as vacuuming and mowing the grass.

Semi-autonomous robots have now been created to assist the severely disabled with routine daily tasks, without additional help from healthcare workers.

Developed at the University of Bremen, at their Institute of Automation, the FRIEND robotic system was designed by a multiple-discipline team that included the input from physical therapists as well as technicians. The acronym stands for Functional Robot arm with user-frIENdly Interface for Disabled people. It is the third generation of assistive robots created by this institute.

This mobile-powered, wheelchairbased system can be directed by controls sensitive enough to be operated by a person with little to no ability to move.

The robot can be controlled in multiple ways—joysticks at either the chin or hand level, by speech, by eye control or via direct brain-computer interface.

The FRIEND’s robotic arm is a sophisticated life-like prosthetic with adaptive sensors capable of delicate grasping.

The arm can be directed by the user at will or performance dedicated tasks pre-pro-

FEATURE A U G U S T — S E P T E M B ER 2013

grammed into the chair’s onboard computer.

Thanks to this computer, the FRIEND can act in integration with other devices throughout the home. For instance, the FRIEND can take a meal out of a refrigerator with automatic doors, place it in a remote-controlled microwave oven, and then feed the user.

The looming population shift to a society with a considerably larger elderly demographic creates a global challenge, and the question is not whether we will need to adapt to accommodate their specific needs, but rather, if we can adapt fast enough to successfully meet that upcoming challenge. The need to age and live with dignity and independence is a universal need shared by everyone, including our loved ones, and ultimately, ourselves.

Functional disability across the globe IN 1951 the average life expectancy in Nepal was 27 years. By 2008, that number had jumped to 65.

IN INDIA it is estimated that there are over 90 million people past the age of 60.

THE UNITED STATES Department of Health and Human Services estimates that by the year 2030, there will be more than 72 million Americans aged 65 years or older. This is more than double the amount counted in the year 2000.

IN THE PAST FIVE DECADES the average life expectancy in China grew from 41 to 73. Now, one out of eight Chinese are older than 60, and half of them live alone.

IN 2005 one out of every 12 Singapore residents was 65 or older, but by 2030, that number could increase to one in five.

First-Generation Emergency Assistance

Technology that does not have to be integrated into a home network, such as personal alarm systems, is referred to as First-Generation Emergency Assistance. The individual would wear a small wireless transceiver that would be constantly connected to a 24-hour call centre.

If the individual needs assistance, perhaps from a fall or medical distress, at the push of a button, the call center would attempt to communicate with the wearer, and then dispatch the appropriate emergency services.

Second-Generation Emergency Assistance

● Second-Generation Emergency Assistance technology would be integrated into a central home-based network and constantly transmit cardiac information to a physician and family members. An example of a typical application is a person wearing a pacemaker. Healthcare professionals could remotely monitor a patient’s condition and take the necessary actions. ● A ‘Smart Shirt’, a wearable garment with multiple sensors, would be another Second-Generation example.

Multiple manufacturers make device models that can send in real-time a torrent of vital sign information to healthcare providers, including heart rate, electrocardiogram data, rate of respiration, skin and core temperature and blood oxygen levels. The readings are so precise, the Smart Shirt can detect falls, impacts, and even overall body orientation, i.e., standing or reclining positions. ● One of the newest innovations in emergency assistance and monitoring technology is computer-assisted flooring and carpeting that can sense various degrees of pressure.

This type of flooring can recognise specific gait patterns, and call automatically alert emergency services in the event of a fall. If placed strategically around a home’s entrances, smart flooring can transmit a signal if a patient suffering from Alzheimer’s attempts to wander away from home. For security purposes, it can even sound the alarm in the event of an intruder. ● At the upper end of Second-Generation monitoring technology are biometric sensors that can be installed in an individual’s bedroom. These sensors can detect movement and can be programmed to alert caregivers if it senses a lack of routine movements at a certain time of day—if the individual was unable to get out of bed, for example.

Third-Generation Emergency Assistance

Third-Generation applications are primarily communication based. By using the Internet, web cameras and microphones, homebound individuals can connect regularly to a network of other elderly or disabled people, reducing any sense of isolation and staving off depression.

Numerous studies have shown that there is a direct correlation between an individual’s state of mind and their overall health and well-being.

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Colour complexity –

choosing the right colour for your decorating goals Understanding perceptions and characteristics behind colour is the very first step to simplifying your colour-selection options. BY KRITI JINDAL

C

olours are an important part of cultural beliefs across the world. In the East, for example, the colour white signifies mourning and death. Yet in the West, white is the colour for purity.

In Chinese culture, yellow is associated with royalty, a concept that took birth during the reign of the legendary Yellow Emperor, Huang Di. The colour was associated with the earth and worshipped by the people of that time. Even today, yellow signifies a higher social status and is reserved for the elite.

In the West, however, bright shades of yellow are associated with the sun and energy.

Red is another significant colour in the East. Cultures across India, China and Japan consider red an auspicious colour, and most brides in India and China get married in red. The colour is very strongly associated with prosperity, happiness and luck, which is a stark contrast in Russia where red is associated with Communism and revolution.

Choosing colour for painting walls

The 3 + 1 rule

Have you ever thought why you like the yellow over green? It could be because you are someone blessed with a sunny personality and it reflects in your choice of colour.

More than mirroring your own personality traits, however, colours have the power to actually alter your mood.

Knowing this, what colour would you paint the walls in your home and what effect can it have on you and your loved ones?

Impact of light on colour It is also important to understand the effect of light falling on the walls. In Scandinavian countries, white is extensively used in the interiors to help maximise light. But this stark colour, if used in warmer climates, can reflect the sunlight and irritate the eyes.

I am often asked whether it’s worth experimenting with bold or bright colours on walls.

While they can often uplift the room, an entire room painted in a bright colour will slowly loose its charm, and you will very soon feel bored of it.

Follow the rule of 3+1. Paint one wall of the room in a different colour and use the wall for displaying your collection of paintings or photographs from trips abroad. The remaining three walls should be painted in a neutral shade to balance out the bold colour.

Warm colours tend to pull the walls inwards and work well in large rooms. Cooler colours, like shades of blue, tend to make the room look and feel larger than it is.

Finally, keep in mind that colour can appear different at different times of the day.

Try painting patches of your colour choice and look at them at different times of the day. Finalise the one that pleases you the most overall.

YELLOW

GREEN

BLUE

RED

PURPLE

People who choose yellow have a fun-loving, happy-go-lucky personality. But on the downside, yellow is associated with the sun, and so therefore, it can also cause anger and aggression in the room. Too much yellow can be overbearing on the eyes after a while.

Green is the most abundant colour found in nature and often a favourite choice in spas as it reflects a relaxing and calming atmosphere. Greens are also refreshing and easy on the eyes.

Shades of blues are associated with calm, peaceful and usually quiet personalities. Blue can create a relaxing atmosphere in the room and is a popular colour in bedrooms.

Red is the most intense colour on the colour wheel.

The colour is associated with passion and energy but should be sparingly used as paint on the wall because too much red can quickly bend towards anger and violence. Reds blended with warm or cool colours to tone down the fierce intensity are preferred by most interior decorators.

Purple is a combination of blue and red and is associated with imagination and creativity. Some Feng Shui masters advise against using purple on the walls, instead picking much lighter tones like lavender.

BLACK Black highlights are becoming a rage—black is often used to frame walls and add depth.

BROWN Brown is warm and masculine and therefore a great choice for bachelor pads (especially as they reflect dependability).

So if you are someone who is generally calm and composed, then yellow is for you. Yellow also helps students concentrate and so it makes for a good choice for a study room.

ORANGE Unlike purple, orange, which is a mix of red and yellow, is considered a social colour and can have a warming effect in cold, winter months.

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In some cultures, dark green symbolises wealth and fertility.

Green can help you de-stress and wind down if you have a hectic work schedule or a restless mind. Green in the kitchen will help it keep cool.

When used in a room with little or no sunshine, blue can make the room feel cold and depressing, so it’s best to balance out blue walls with warm furnishings. And dark blues are associated with a melancholic mood, so stick with the lighter shades.

PINK Pink is romantic and whimsical.

Straight from the land of fantasies, people with a loving and compassionate nature are drawn towards this hue. Pinks can help you unwind and reveal your hidden inner poet.

NEUTRAL Interior designers and decorators commonly use a neutral colour scheme because they allow a lot of variation in the décor and can easily be used to highlight or downplay a certain element.

FEATURE A UGUST — SEPTEM BER 2013

R OOM

T O

S T U D Y:

Decorating student housing Some tips for preparing a student accommodation investment that will inspire a better ROI right along with good study habits! BY KRITI JINDAL

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Š ALDRIN MUYA/MUYA

S

tudents make for interesting tenants and certainly have their own sense of style. Properly furnishing and decorating your student accommodation investment will not only help you to attract the right kind of tenant, as well as increase your return on investment, but may also just help that student achieve academic success at the same time. Here are our top suggestions:

FEATURE A U G U S T — S E P T E M B ER 2013

LIGHT IT UP The lighting plays a crucial role in a student’s study room. Remember that besides everything else, students will also be studying here! A dull and dingy room will make the student feel sleepy and tired all day long.

Make sure that there is plenty of natural light in the room. A window in the east, for example, will help bring in the morning sun.

In order for students to study late into the night, a desk can be placed close to a window in the west. Place a study lamp on the table for extra light. If the room lacks natural light, explore options like changing the light bulbs with higher wattage ones and adding extra floor lamps.

EMBRACE BRIGHT COLOURS Keep a student's spirits high in a bright and cheery room. The easiest way to uplift a drab room is to paint an accent wall in a bright colour. But when painting the wall is not an option, invest in bright furnishings like curtains, throws and cushions. Removable decals can also be applied to the walls in the study room to add some colour.

Make it functional: at times, students can feel caged in a study room and require small breaks to unwind and de-stress. There is no better way than by creating an area in the room that allows the student to escape for a little while without leaving the room.

The idea is to create a small cosy corner in the study room. A small bookshelf can help in dividing the space in the room and carving out a small retreat. Place easy-to-move and comfortable pieces like poufs, floor cushions or beanbags. Students can further ersonalise the corner with a little table and a few books that they like.

START AN INSPIRATION WALL Students are often repeatedly told to follow their dreams and chase their goals. An inspiration wall in the study room will go a long way in reminding them to stay focused towards their aspirations. Install a soft board above the study table so the student can pin pictures of inspirational things and people.

DON’T IGNORE THE ERGONOMICS The ultimate goal of a study room is to allow the student to study in peace and quiet.

Besides the décor, it is important to ensure that the furniture ergonomically supports the body frame and posture. If furnishing the room, buy adjustable chairs so that the student can set the height of the study desk and chair to a level that is comfortable. A small folding table can be placed on the desk as and when required to reduce the stress on the neck and collar bones.

ADD WARMTH Nobody likes a cold, lifeless room, especially if it is designed for study. A rug can add warmth to the room to make it more inviting. Choose warm colours like yellows, oranges and reds in geometric designs. You can also buy a few smaller rugs and piece them together to create a larger size. But also make sure that the room does not get too cosy to study!

Plants are another great way of bringing in a bright and fresh feeling. Place a leafy indoor variety in a colourful pot. Students may not remember to water it regularly, though, so consider bamboo sticks and cacti, which are zero maintenance and great for students.

PERSONALISE As a student will be spending a lot of time in the study room, simple pieces of art can add colour to the room and will help create a sense of belonging. Family photographs are another way to make the student feel comfortable, especially if they are away from home for the first time. Yet as an investor, you may not want lots of little nail holes in the walls or permanent sticky tape peeling off the paint. To avoid hammering nails or any damage to the wall, encourage students to use picture-hanging strips that are easily removable and don’t damage the wall. In fact, why not buy a supply and offer it to the student as part of the 'furnishings'? It is, afterall, a small amount to spend to help protect your investment.

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NEWS A UGUST — SEPTEM BER 2013

Celebrity estates

M

ovie stars used to follow their dreams of fame and fortune in lieu of a university education.

These days, however, the trendy celebrity does both, sometimes insisting upon standard university accommodation while at other times, opting for more luxy digs. Either way, unlike most coeds, the celebrity student must also deal with paparazzi and whispering classmates.

Yet some celebs become famous because of their illustrious university education.

Take for example Facebook founders Mark Zuckerberg and Eduardo Saverin, who are known to have started the worldwide social media phenomenon from their dorm rooms at Harvard (and are now billionaires).

Zuckerberg lived in Straus Hall overlooking Harvard Square, where the accommodation - even for non-celebs (as Zuckerberg was at the time) - includes woodburning fireplaces and common rooms with leather chairs, mahogany paneling, kitchen, and a large meeting room. Saverin, on the other hand, is more well known for his current lifestyle, rather than his one-time university digs, as a playboy in Singapore and for renouncing his US citizenship.

Harvard University ▪ I.M. Pei ▪ John F. Kennedy ▪ John Lithgow ▪ George W. Bush ▪ Tommy Lee Jones ▪ Bill Gates ▪ Barack Obama ▪ Matt Damon ▪ Natalie Portman ▪ Mark Zuckerberg ▪ Eduardo Saverin Cambridge University ▪ Syd Barrett ▪ Rachel Weisz ▪ John Cleese ▪ Sacha Baron-Cohen (Ali G) ▪ Isaac Newton ▪ Charles Darwin ▪ Stephen Hawking ▪ Prince Charles

Sacha Baron-Cohen

SOURCE BIOGRAPHY.COM AND CAMBRIDGE-STUDIES.COM

Famous students

of famous parents

G

Facebook's birthplace?

Strauss Hall at Harvard University

Mark Zuckerberg

Eduardo Saverin

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Two of the most prestigious universities in the world, Harvard in the US and Cambridge in the UK, have a long line of famous alumni, from politicians to Hollywood heartthrobs to entrepreneurs — and even some royalty.

eorgia May Jagger, daughter of Mick Jagger and Jerry Hall, is already a famous model. She will be returning to the School of Visual Arts in New York City this autumn as a senior.

Xi Mingze, daughter of the president of China, Xi Jinping, has been an undercover student at Harvard for the past two years, returning as a senior for the next school term.

Patrick Schwarzenegger, son of, well, you already know. Apparently his famous parents helped him move into his university dorm room last year when he began as a freshman at the University of Southern California.

SOURCE BUSINESS INSIDER

Georgia May Jagger

Patrick Schwarzenegger

grape Buyan A bit of the at

The contemporary restaurant serving traditional Russian cuisine may have one of the best selections of wine and champagne in Singapore.

BY JENNIFER LS HARRISON

Naturally vodka is the drink most associated with Russia. But wine has been produced in the region since the 6th century B.C. and Russia’s modern wine industry is growing – in quantity, quality and reputation. Traditional grapes for winemaking, especially in southern Russia (because it’s just too cold in the north), include Muscat, Pinot Noir, Zinfandel, Cabernet Sauvignon and Saperavi.

At Buyan, they take their wine very seriously. In addition to a collection of wines and champagnes from small wineries to very select vineyards in France, Australia and Spain, the wine menu includes Russian sparkling wines from Abrau Durso, which, up until 1917, were served exclusively to the courts of the Russian monarchs.

The notable history of Russian sparking wines reaches back to 1889 when Prince Leo Galitzine established the first Russian factory of ‘champagne wines’ and was awarded the Gold Medal at the Paris exhibition. Galitzine went on to become the surveyor of Abrau-Dyurso (Abrau Durso), produced throughout the 1900’s as the ‘champagne of the people’.

CONTACT

9/10 Duxton Hill Singapore 089593

Russian sparkling wines at Buyan Abrau Durso Imperial Collection, Krasnodar, Russia 2008 – 750ml

Grapes: Pinot Blanc, Pinot Noir, Chardonnay Sommelier note: Dry and crisp with citrus fruit flavours of lemon and lime, with a rich mouthfeel. Excellent to have it with our signature Oladiye caviar.

Glass: SGD $14 Bottle: SGD $55

Abrau Durso Alexandre II Rosé, Krasnodar, Russia 2008 – 750ml

Grapes: Pinot Noir, Chardonnay Sommelier note: Refreshing with light red fruit flavours that entices your palate, and has a long, lingering finish. Excellent to enjoy on its own, but pairs great with food.

Glass: SGD $14 Bottle: SGD $55

Abrau Durso Victor Dravigny Rouge, Krasnodar, Russia 2008 – 750ml

Grapes: Cabernet Sauvignon Sommelier note: This is an excellent example of sparkling wines made from red grapes. It is full-bodied, smooth tannins, with a touch of sweetness.

Glass: SGD $10 Bottle: SGD $43

RESERVATIONS

+65 6223 7008 info@byuan.sg http://buyan.sg

HOURS OF OPERATION Lunch: Tuesday - Friday 12 - 3pm Dinner: 6 - 10.30pm

Shipwreck Champagne As a testament to their dedication to the grape, Buyan is starting a wine museum this September, and has started the collection with perhaps the most famous champagne in the world, the ‘shipwreck champagne’.

After about 200 years under water, the world’s oldest surviving champagne was discovered in 2010 in the Finish waters of the Baltic Sea. Two Finish divers revealed the perfectly preserved wreck and salvaged the 140 bottles of champagne found inside, reportedly headed for Russian Tsars and aristocrats.

In June 2011, two of these bottles were put up for auction – one Julgar for €24,000 (USD $31,864) and one Veuve Clicquot for €30,000 (USD $39,831) – and they were purchased by the owners at Buyan.

In July 2011, they arrived in Singapore, to be displayed in Buyan’s wine museum.

JAMES E. HARRISON

Harrison is a real estate expert who has worked in Singapore, across Europe, Africa and the United States.

What does an Estate Agent do?

Estate Agents have traditionally been viewed as only slightly trustworthier than used car salesmen. Is that fair?

And just which side are they on, the buyer’s or seller’s?

I

complained a bit in my previous article about the purpose of an Estate Agent these days, especially with online property portals seeming to do most of the legwork. But I shall be the first to admit that it’s a most unfair assessment to call an Estate Agent untrustworthy by matter of job title alone. As in any profession, there are some bad apples, naturally. But unlike those who sell autos that have been previously owned (or ‘loved’), Estate Agents are usually educated, qualified and licensed professionals.

What does an estate agent do?

Put simplistically, an Estate Agent evaluates, markets, shows and negotiates.

1 EVALUATE

Most traded commodities are constantly changing price (look at the graphical representation of gold or oil prices). But at any given point, everyone will be able to agree a narrow range of value. Real estate, on the other hand, has many personal subjective factors, and each and every one of them has the potential to affect value.

To most (but not all), a swimming pool enhances the value of a property. Yet the size of the pool will differ in value between potential purchasers. In another example, the property’s proximity to shops (and what sort of shops) will make the biggest difference to the overall property value. For some, it is simply the colour of the bathroom tiles or brand names of the appliances in the kitchen that can add or remove the most value.

Any agent worth his or her salt should be able to estimate a value with the address, size, photo of exterior, list of facilities and age of building. In fact, with the advent of portals, any layman should be able to enter an unknown market and form a pretty good idea of current market (advertised) value.

But an Estate Agent understands is that the final valuation of real estate is based on comparables.

an Agent who took the wrong approach, it will be easy to understand the value of this skill.

2 MARKET Listing a property online with the dominant portals isn’t very difficult. And just about anyone is capable of putting an ad in the paper. Yet there is so much more to it.

You can go ahead and list your property on your own, but you are one person, marketing one property. Believe it or not, though, an Estate Agent’s marketing skills come down to first marketing themselves as Estate Agents, before marketing your property. And this is good for you and your one property. It’s called lead generation.

An Estate Agent is a master of lead generation and understands that by gathering in as many potential clients as possible, they increase the odds that one of them will want to buy your property. So when you hear an Estate Agent speak of marketing, remember that it’s beyond just taking the right photos of your property, or when to host an ‘open house’ or a ‘viewing’. The best Agents will have been marketing themselves long before ever setting eyes on you or your property.

4 NEGOTIATE

3 SHOW Driving buyers around, open-

ing doors and, with a straight face, saying, ‘This is a bathroom’, or, ‘Yes, I expect your yellow sofa would definitely enhance this room,’ is without a doubt a skill learned through practice. There is a subtle nuance about knowing when to pretend to take a telephone call while the buyers argue about whether parking or a large kitchen is more important.

It is through practice that an experienced Agent will know when to take a buyer by the hand and when to back off and let them wander through a property. If you have ever sold or bought a property and had

Now we’re on a sticky wicket! On the one hand, most of us – not that we would want to admit it — are not trained negotiators (we think we are clever if we can get a 10% discount on holiday trinkets). So the Agent is vital for negotiations!

Who’s side are they on?

As the Agent normally has a contract with the seller, we would presume they have the seller’s best interest at heart. But let’s have a quick look at some numbers. These are not necessarily representative of the current market, just some easy, round numbers: LIST PRICE: SGD $1,000,000 AGENT COMMISSION: 1% - SGD $10,000

Say that the buyer offers SGD $600,000, but the agent tells the seller that the buyer will go as high as SGD $800,000.

The seller will lose SGD $200,000 on this deal (a lot of money in anyone’s eyes).

However, the agent will only lose SGD $2,000. Ah, I hear you say that surely they lose the same percentage, which makes it fair? Not really. The Agent can make a quick sale and, with the time saved, make another sale. And, really, you just can’t really compare losing SGD $200,000 to losing SGD $2,000.

So where does that leave you as the buyer or the seller? Looking for an Agent you trust, maybe a friend, maybe a recommendation ... maybe luck. So while an Estate Agent may be an experienced negotiator, the point is – make sure they are negotiating on your behalf. Or, considering the Latin for ‘buyer beware’, caveat emptor, perhaps this Latin is more suitable – caveat venditor – seller beware.

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Singapore All prices in Singapore Dollar (SGD)

Urban Redevelopment Authority (URA) Q2 2013

Residential Property Property index: 214.9 (+1.7 points or + .8%) Non-landed properties

Core Central Region (CCR)

− 0.2% (up 49% since 2009)

Rest of Central Region (RCR) + 0.2% Outside Central Region

+ 3%

Developers’ sales volume for June 2013: 2,119 sold

SRX Property Index June 2013

Non-landed private residential sales RESALE PRICES

Overall

+ 1.8% from May 2013

Core Central Region (CCR)

+ 5.5%

Rest of Central Region (RCR)

+ 0.5%

Outside Central Region

− 0.2%

Singapore Monetary Authority

News

Low interest rates, over lending and growing property prices

According to the Managing Director of the Singapore Monetary Authority, Ravi Menon: ▪ Home loans increased by 18% for each of the past three years. As a percentage of GDP, home loans are at 46% (up from 35% three years ago).

JUNE 2013 The Singapore central bank announced yet another set of cooling measures specifically to ensure that a property buyer does not obtain property payments exceeding 60% of his or her total income. The measures apply to all types of properties as well as all types of loans and refinancing.

Not only is this believed to help cool the market, but also to protect buyers from a rise in interest rates.

▪ An estimated 10% of loan borrowers in Singapore have repayments that exceed 60% of their income. If mortgage rates rise, lower-income households may feel a significant strain.

JUNE 2013 Singapore’s central bank again shared concerns at growth in household debts alongside increasing property prices, citing over borrowing due to low interest rates and longer-term loan tenures.

In fact, Moody’s, the global credit rating agency, downgraded Singapore’s outlook for its main banks from stable to negative, also pointing to the dangerous combination of over lending and rising property prices.

May to end of July 2013

RESALE VOLUME

605 units, or –38% compared to June 2012

Highest prices per square foot, condos/apartments:

Non-landed private residential rentals

▪District 9

$5,560

(Orchard, Cairnhill, River Valley)

RENTAL PRICES

Rest of Central Region (RCR)

− 0.2% from May 2013

Core Central Region (CCR)

− 1.6%

Rest of Central Region (RCR)

+ 0.4%

Outside Central Region

− 0.5%

Highest prices per square foot, landed properties:

$2,922

▪District 10

OCBC Bank announced that a property market crash is unlikely but a correction in the market is due. Lower transaction volumes and lower prices should be expected, which is healthy for the market, but the economy will remain stable.

(Bukit Timah, Holland Road, Tanglin)

▪District 4

(Telok Blangah, Harbourfront)

HDB resale and rental Cash over valuation (COV): − $3,000 to end at $24,000* RESALE PRICES

Overall: − 0.1% from May, the second consecutive monthly drop

▪Sentosa Top three condo/apartment developments by sales volumes 1 Bartley Ridge – 170

RESALE VOLUME

2 The Topiary – 158

1,210 units sold, or – 9% from May 2013 or – 38% from June 2012

3 Saintratum – 120

RENTAL VOLUME

Top three condo/apartment developments by rental volumes

1,410 units rented, or – 9% less than May 2013 *This is the lowest COV recorded since February 2011, when the overall COV was at $22,000.

According to a new report by Mercer, Singapore is the 5th most expensive city in the world for expatriates by cost of living. The top four include (1) Luanda, Angola, (2) Moscow, Russia, (3) Tokyo, Japan and (4) N’Djamena, Chad. Hong Kong came in at number six.

1 City Square Residences – 95 2 The Sail @ Marina Bay – 88 3 Nv Residences – 81

Districts 1 Temasek Blvd, Raffles Link 2 Anson, Tanjong Rapag 3 Queenstown, Tiong Bahr 4 Telok Blangah, Harbourfront 5 Pasir Panajang, Clementi 6 High Street, Beach Road 7 Middle Road, Golden Mile 8 Little India 9 Orchard, Cairnhill, River Valley 10 Bukit Timah, Holland Rd, Tanglin 11 Watten Estate, Novena, Thomson 12 Balesteir, Toa Payoh, Serangoon

13 Macpherson, Braddell 14 Geylang, Eunos 15 Katong, Joo Chiat, Amber Road 16 Bedok, Upper East Coast 17 Loyang, Changi 18 Tampines, Pasir Ris 19 Serangoon, Hougang, Ponggol 20 Bishan, Ang Mo Kio 21 Upper Bukit Timah, Ulu Pandan 22 Jurong 23 Bukit Panjang, Choa Chu Kang 24 Lim Chu Kang, Tengah

25 Kranji, Woodgrove 26 Upper Thomson, Springleaf 27 Yishun, Sembawang 24 28 Seletar

27 25 28

26 23

18 17

22

13

21

14

11 5

10 3 4

9

8 6

2 28

96

19

20

12 7 1

15

16