Those seeking a vacation home in
an exotic locale are finding themselves wooed for the first time by some
formerly standoffish Asian governments. Traditionally, these countries–including
Singapore, Thailand, Malaysia and Indonesia–have discouraged foreigners from
laying claim to attractive properties, but this is changing.
 | FOREIGNERS WHO bought luxury homes like this one in the Baan
Thai Surin Hill development in Thailand have seen them appreciate rapidly. |
"I think in all Asian environments there is a natural caution
and resistance in terms of [not wanting] to open the floodgates to having
foreigners owning the majority of the valuable property," notes David Simister,
chairman of CB Richard Ellis (Thailand) in Bangkok.
But as wealthy individuals continue to seek vacation homes in
interesting regions, especially those that also hold the prospect of performing
well as investments, a number of Asian governments are offering (or at least
considering) incentives.
Under the "Malaysia My Second Home" program, buyers can get a
10-year multiple-entry visa that is easily renewed; the government recently
increased it from five years. In Singapore, second-home buyers still cannot own
land–only units within buildings, generally–but the government is making
exceptions for a new luxury waterfront area, Sentosa Cove, to ensure its
success. Indonesia is considering legislation to allow foreigners to own
land.
For the investment-minded, there is plenty to like in Asia.
"If you compare it to buying a ski villa in Whistler, you’re in
more unfamiliar territory," Simister says. "But you are buying an exotic
property in a part of the world where the capital appreciation–well, there’s
still plenty of evidence that there’s a lot more to come."
Simister tells of Americans who bought properties in Phuket, Thailand, a few
years ago and have since seen 100 percent-plus gains on their investments.
Regarded as Asia’s top yachting spot, Phuket is dotted with luxury marina residential complexes. Many properties have
berths for boats, and the government recently slashed the VAT on yachts, partly
to encourage foreigners to invest here. "The good prime sea-view properties can only continue to
appreciate," Simister notes. "We’re seeing several properties that we’re now
denoting in millions of U.S. dollars. A couple of years ago people felt the
million-dollar mark couldn’t be breached."
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