New research shows how Asia’s transportation infrastructure push will enhance connectivity, create real estate opportunities

HONG KONG, 12 December 2019 - A surge of investment in airports, high-speed rail and other transportation infrastructure in China, India and Southeast Asia over the next decade is poised to enhance the connectivity of the region’s cities and create a host of new real estate development and investment opportunities, according to a new report by Colliers International (NASDAQ: CIGI; TSX: CIGI), a global leader in commercial real estate services. 

Efforts to update or replace aging airports, railway networks and urban mass transit systems are increasingly being supported by real estate development to fund the costs of infrastructure and ongoing operations. This trend is opening new communities and creating high-potential zones that are highlighted in the report, Asia Infrastructure Snapshot 2019.  

“While these transportation projects vary in size and scope, real estate is the common thread running through them,” noted David Faulkner, Managing Director of Valuation & Advisory Services, Asia at Colliers. “New airports and transport developments are becoming the pillars for dynamic new residential and commercial hubs that will foster a range of future real estate possibilities.” 

China
The report identifies 37 new or expansion airport projects across China that are set to support the development of new economic zones and logistics centres, and regenerate previously underserved regional cities. Meanwhile land values are expected to rise around the stations across 2,100km of new high speed rail lines, and transport-oriented development opportunities will emerge around nearly 2,000 new metro stations throughout cities like Beijing, Tianjin and Chengdu. 

India 
In addition to new airports serving Mumbai and the tourist destination of Goa, India is set to get its first high speed rail line in 2023, linking Mumbai and Ahmedabad and creating new commercial, retail and residential destinations in the process. Retail and commercial developments, as well as new affordable residential opportunities, are also expected to emerge around new mass transit stations in the Delhi urban conglomeration and technology hubs like Hyderabad and Bengaluru.  

Indonesia 
Major transportation developments include a fourth terminal for Jakarta’s Soekarno Hatta International Airport with the potential to create a airport city and iconic mixed-use lifestyle destination, as well as a high speed rail line linking Jakarta and Bandung that will foster new transit-oriented developments. New MRT lines are also expected to raise the connectivity and profile of Jakarta’s secondary business districts. 

Philippines 
Four rail line projects with a total of 59 stations will improve access to alternative business and commercial locations such as Pampanga, as well as the Bicol and Mindanao regions. The capital Manila is also set to benefit from a new subway line and an international gateway airport that will open the northern part of the city to industrial and residential investment. 

Singapore & Malaysia 
In Malaysia the expansion of Penang International Airport will remove a key barrier to the expansion of the island’s tourism sector, while in Singapore a fifth terminal at Changi Airport will eventually expand its capacity by up to 70 million passengers. Linkages between Kuala Lumpur and Singapore are set to improve with the opening of a high speed rail line connecting the two cities, which will significantly raise the profile of Singapore’s Jurong Lake District and the Bandar Malaysia project in Kuala Lumpur. 

 

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For further information, please contact:

Cassius Taylor-Smith
Asia Marketing Communications 
Colliers International 
Phone: +65 6531 8667
Email: cassius.ts@colliers.com

About Colliers International

Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning approximately 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at corporate.colliers.com, Colliers.com or follow us on LinkedIn.