When it comes to future-proofing, the city of Bangkok is lagging against in global rivals.
Few cities from the Asia-Pacific region make real estate firm JLL’s top 30 rankings, with only Tokyo, Sydney, Seoul. Melbourne and Singapore making the list from this side of the world.
For property investors this has to be one factor that will influence their buying decision.
The JLL report also identifies Singapore as being the only Asia Pacific city that is in the ‘sweet spot’, scoring in the global top 30 on both measures.
The city-state ranked 26th for short-term economic and real estate dynamism and 29th for its effort in future-proofing for longer-term success.
Bangkok is ranked 26th globally for short-term economic and real estate dynamism in the report.
Jeremy Kelly, Director, Global Research, JLL, said, “Asia-Pacific’s cities continue to experience phenomenal rates of change as they serve expanding domestic economies and act as gateways to the world’s fastest-growing region for global investment and trade.”
“Robust growth is contributing to real estate market momentum across the region, with significant levels of construction as modern stock is built to meet demand and record levels of commercial real estate investment in 2017.”
“However, rapid growth can also lead to issues such as strains on infrastructure, affordability constraints and environmental degradation. In order to maintain their growth over the longer term, Asia-Pacific’s cities will need to focus on future-proofing their markets through improved live ability and affordability, regulatory transparency and physical and technological infrastructure.”
“For investors, there is an imperative to know which cities will be able to gain from technological transformation for long-term value preservation and growth.
“Developers can contribute to city success by understanding city strategies and their capacity for supporting the move towards new types of economic activity, enabling them to produce transformational projects that facilitate creativity, innovation and the sustainable communities that businesses and workers are now demanding.”
JLL’s Global Research combined a total of 46 variables to assess short-term momentum and longer-term future-proofing attributes. New indicators in the CMI 2018 include the number of technology ‘unicorns’ created in each city and the quality of public transport infrastructure.
Both indices cover 131 major established and emerging business hubs across the globe. The short-term component of the CMI incorporates forecasts over a 3-year (2018-2020) horizon. The future-proofing index focuses on elements which are expected to impact a city’s competitiveness over a long-term (10 year) time-frame.