5. A Look at Japan. Geography Page 94 Dependent on imported raw materials, fossil fuels Positive...
58
5. A Look at Japan
-
Upload
lionel-morrison -
Category
Documents
-
view
213 -
download
0
Transcript of 5. A Look at Japan. Geography Page 94 Dependent on imported raw materials, fossil fuels Positive...
5. A Look at Japan
Geography
Page 94
Dependent on imported raw materials, fossil fuels
Positive trade balanceUnrestricted flow of capital and financial
transactions Unique to Japanese business—the
Keiretsu
Economy and Business
Pages 95-96
Japan’s National Debt230% of its GDPOffset by trade
surplus, foreign currency portfolio
Increasing consumption tax to 10% by 2015
Investor confidence
Difficult reckoning in 10–20 years? Aging population Shrinking workforce Cost of debt service Waning export
competitiveness
Page 96
Human tragedyLost families, homes, and livelihoods363,000 buildings completely or partially destroyed; damage to
infrastructureMost expensive natural disaster in historyA decade to rebuildOpposition to nuclear power plants
2011 Disaster
Pages 96-97
Scarcity of land Many small landholders , small land parcels Land lease system Landowner maintains title to the landLeaseholder receives the right to construct and
occupy a building on it
Land Lease
Pages 97-98
No restrictions or conditions No government permission or approval Free flow of capitalMay establish a operate a business
But….Mortgage financing obstacles
Can Foreigners Own Real Estate?
Pages 98-99
Home values depreciateSell at deep discounts25-year old home has no valueMost rebuilt after 25–30 yearsNo value in quality constructionJapanese favor newPrevious owner’s bad fortune?
Secondhand Housing
Page 99
Homeownership rate—61% Small living spaces, condos—45 m2,
single family homes—121 m2Land prices barometer for new home prices1 tsubo = two standard tatami mats
(3.3 square meters , 35.5 square feet)
Homeownership Trends
Page 100
Pro-landlord, expensive process5-7 months rentKey money—thank you for privilege of renting Direct transfer of rent payments from the tenant’s
bank accountForeign Resident Registration Card
Rental Property
Pages 100-101
Real estate business licensing
Sales agent licensingMinistry for Construction
regulates commission rates
Real Estate Professionals
Page 102
Office Vacancy Rates
Page 103
Despite weak growth, favored country for real estate investmentInvestment in senior housingIncrease of vacanciesShare houses and common living2020 OlympicsAbenomicsWeakening Yen
Top Trends
Pages 103-104
Beyond the BasicsNamesInitial Contact and
IntroductionsIntermediariesBusiness
RelationshipsBusiness Cards
MeetingsDemeanorNegotiations and
DecisionsSocial EtiquetteA Few Taboos
Pages 108-112
AmaeHada to hadaNemawashiTatemae and honne
Building Relationships
Page 109
6. A Look at India
Geography
Page 116
Economic Growth—surpassing China?Growing Middle ClassHomeownership—86%Subsidies and Rising Commodity Prices Infrastructure issuesSpreading urbanization, crowded cities
Modern India
Pages 117-121
Torrential downpours 80% of the annual rainfallJune to AugustBeneficial monsoon season
bolsters the economy
Monsoon Season
Page 120
FDITop FDI Investors in India1.Mauritius*2.Singapore3.United Kingdom4.Japan5.Netherlands6.United States7.Cyprus*8.Germany9.France10.Switzerland
Top Sectors for FDI18%–Services10%–Construction Development: Townships, Housing, Built-Up Infrastructure7%–Telecommunications6%–Computer hardware and software
Pages122-123
Your Next Client?United States: 2.2 millionCanada: 1 millionU.K.: 1.5 millionS. Africa: 1.2 millionMalaysia: 2 millionSingapore: 590 thousandSaudi Arabia: 1.7 millionUAE: 1.7 million
India Diaspora
Page 123
NRIs and PIOsNon-Resident Indian
(NRI)Person of Indian
Origin (PIO)Overseas Citizen of
India (OCI) Prime source of
investment in real estate
Government encourages ties and long term investment
NRI Colonies--full-amenity communities
Pages 124-125
Diaspora pulls Indians abroadCareer opportunitiesFamily tiesImmigrationReal estate business potential
Why is This Important?
Pages 124-125
Bank Accounts
Page 125
Determines flow of funds for real estate transactionsNon-Resident Ordinary Rupee Account (NRO)
Non-Resident External Account (NRE)
Foreign Currency Non-Resident Account
(FCNR) Annual repatriation
limit of US$1million
RBI approval for repatriation
NRIs only
Funds must be from abroad
Government approval required to withdraw funds for real estate purchase
NRIs only
Foreign currency from abroad
Indian property law Maintain real property ownership by resident citizens Quell speculation
Limit ownership to Indian citizens, those with family tiesNo ownership of agricultural land, plantation property,
or a farm house
Buying Real Estate in India
Page 126
Crore and Lakh
Page 126
1 Crore = 10 Million
1 Lakh =100,000
Stamp Tax Registration FeeCapital gains tax Real estate agent feesRegistration Property tax
Transaction Costs
Page 127
Foreign Ownership?
Page 128
May purchase a residence
Prior-year’s stay of 182 days required plus proof of intent to reside in India indefinitely
Foreign Residents of Non-Indian Origin
Non-Residents of Non-Indian Origin
No purchase allowed
May rent a residential property
Maximum 5-year lease
Foreign corporations need Reserve Bank of India approval to buy or sell real property
Trend toward outlying business park developmentResidential development funded with foreign capital
requires 25 acres of land Commercial properties minimum 50,000m2
Commercial Real Estate
Page 128
Rent-control laws skew rental marketsApply to leases of 12 months or more11-month leases commonServiced apartments provide short term
housing for staff of foreign companies
Rental Property
Page 129
States regulate real estate practiceNo licensing Informal channels-homemakers, friends and relatives, kiosk
owners, and janitors National Association of
Realtors–India striving for professionalism nationwide MLS
Real Estate Professionals
Pages 129-130
Tremendous growth due to urbanization, increasing income, and FDI
Benami Transaction BillREITs and Commercial Real EstateAffordable HousingSenior Living
Top Trends
Pages 130-131
IntroductionsWomen in BusinessBusiness CardsConversation Starters MeetingsDemeanorContracts and NegotiationsA Few TaboosSocial Etiquette
Beyond the Basics
Pages 135-141
7. A Look at Philippines
Geography
Page 144
12 million Overseas Filipinos (OF), Overseas Filipino Workers (OFW)
Workers’ remittances $20.1 billion, 13% of GDP2nd largest Asian-American group in U.S.California, Hawaii, Illinois, New Jersey, New York, Washington,
D.C., Texas, and FloridaMedian household income of $78,000
Philippine Diaspora
Pages 145-146
Exports to: China, United States, Singapore, and Japan Agricultural Industrial Mining
Infrastructure impedes development outside metro areasTourism potential
Philippine Economy
Pages 146-147
Overtaking IndiaEnglish-speaking workersService attitudesLow wages & office rentsMakati City, Manila, Quezon City, Cebu CityDriving office space, residential, retail
development
Business Process Outsourcing
Pages 148-149
Cloud & Virtual WorkforceBusiness Process Management
(BPM) and Knowledge Process Outsourcing (KPO)
Disaster Planning and Business Continuity
Trends
Pages 148-149
Building for Ecologically Responsive Design Excellence
Philippine Green Building CouncilLocal green building rating systemPatterned after LEED
BERDE
Page 149
Cannot own landCondos okay if no more than 40% foreign occupancySingle-family home okay but not the landForeign natural heirs of a Filipino citizen may inherit, cannot
sell to foreignerCorporations less than 40% foreign ownership may acquire
land
Foreign Ownership of Real Estate
Pages 149-150
Influx of expatriates and retirees keeps market active
government encourages return of expatriates, those with family ties
Citizenship Retention and Reacquisition Act Special Resident Retiree’s Visa
Homeownership
Page 150
Luxury condos 2–3 month’s rent deposit Rent paid in advance, post-dated checks
Standard rental 2 month’s rent deposit
“Customs of the place“
Rental Property
Page 151
National licensing Challenge to develop the
real estate management skills
Chamber of Real Estate and Builders Association
Real Estate Professionals
Page 152
Real estate market growing and prices are rising
Manila Top Real Estate MarketASEAN Integration
Top Trends
Page 152
NamesInitial Contact and IntroductionsBusiness CardsNegotiations and DecisionsDemeanorSocial Etiquette
Beyond the Basics
Pages 156-159
8. Country Profiles
A Look at Australia Geography
22.5 million, 6 statesEconomy
Continuous growth; strong stable system
Foreign Ownership Some restrictions for
second-hand housing Agents licensed by
state/territory
Beyond the Basics Diverse and
multicultural society Informal in business
and social life
Pages 163-167
A Look at Hong Kong
Pages 169-173
Geography 7.1 million, Basic Law
Economy Expensive real estate,
stamp duty Foreign Ownership
Can buy, rent, invest Foreign exchange
restrictions for mainland Chinese
Licensed agents
Beyond the Basics Behavior and
protocol similar to China, but more relaxed
A Look at Indonesia
Pages 175-181
Geography 253.6 million, Diverse
Economy Many obstacles
Foreign Ownership Cannot own land,
businesses, or houses but can purchase strata title
No license required for agents
Beyond the Basics Respect and
relationships important
Strive for harmony and saving face
A Look at South Korea
Pages 183-188
Geography Seoul is 10.4 million
Economy 12th largest Chaebols
Foreign Ownership Few restrictions Agents must be
licensed Expensive to rent
Beyond the Basics Strict hierarchy,
respect for seniority and elders, and group harmony
A Look at Malaysia
Pages 189-198
Geography 30.1 million
Economy Exporter of oil and gas Government subsidies
Foreign Ownership Few restrictions, but
minimum value req. MM2H Agents must be
licensed
Beyond the Basics Bumiputra Modest, self-
deprecating, and face-saving behavior admired
A Look at New Zealand
Pages 199-203
Geography 4 million, kiwis
Economy Agricultural exports Globally competitive Homes sold in auction
format, no MLS Foreign Ownership
Few restrictions Licensed agents
(national)
Beyond the Basics Egalitarian Concise,
straightforward approach to business
A Look at Singapore
Pages 205-209
Geography 5.6 million, mix of
Chinese, Malay, IndianEconomy
#1 ease of doing business
Foreign Ownership Approval required in
some cases Stamp duties License required
Beyond the Basics Indirect
communication and saving face valued, yet keen negotiators
A Look at Taiwan
Pages 211-214
Geography Taipei is 2.7 million
Economy Healthy trade surplus
and foreign reserves Foreign Ownership
May purchase or lease if Taiwanese are allowed to in foreigner’s country
License required
Beyond the Basics Traditional Chinese
culture Family important Group harmony
A Look at Thailand
Pages 215-219
Geography Bangkok is 8.2 million
Economy Tested by recession,
flooding, and political unrest, but resilient
Foreign Ownership Cannot own land, only
condos and apts Practitioners, business
not regulated
Beyond the Basics 95% Buddhist, sets
tone for hierarchical relationships
Wai (greeting) Body language key
A Look at Vietnam
Pages 211-225
Geography 93.4 million
Economy State-owned
enterprises dominate Foreign Ownership
2015 law allows foreigners to buy houses with valid visa
Licensed property trading floors/agents
Beyond the Basics Value duty, loyalty,
honor, respect for age and authority, and family devotion
Summary: What Did We Learn? Identify the social, political, and geographical
characteristics of Asia/Pacific countries. Develop market intelligence by researching factors
that shape Asia/Pacific real estate markets and assessing business opportunities.
Adapt business and social behavior to conform to customs and cultural norms.
Develop strategies for making productive network contacts and marketing your real estate services to clients and customers from Asia/Pacific countries.
Page 225
