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Tag: construction

  • Pakistan Construction Growth Surges to 19.2% as Subsidised Loans Spur Housing

    Pakistan Construction Growth Surges to 19.2% as Subsidised Loans Spur Housing

    Pakistan’s construction sector reached 19.2 per cent growth in the first quarter of FY26, rebounding from a negative 3.3 per cent reading recorded in the first quarter of FY25, according to State Bank of Pakistan data. Builders credit the turnaround to a surge in domestic liquidity following the introduction of a federal housing scheme and declining capital outflows to Dubai.

    Hassan Bakhshi, chairman of the Association of Builders and Developers (Abad), noted that middle-class buyers who were previously priced out have returned to the market. This renewed purchasing activity has enabled builders across urban centres to recover capital that had remained locked in unbooked apartments.

    The growth comes despite strict lending constraints from commercial banks, which continue to withhold financing from applicants who lack full documentation or proper approvals from the Sindh Building Control Authority. Even with these documentation hurdles, the State Bank reported that construction expanded 14.6 per cent in the first half of FY26.

    Financing Terms Clear Stalled Inventories

    The state-backed Ghar Ho Tu Apna programme rolled out in September last year to offer loans capped at Rs10 million on extended instalment structures. Markup subsidies absorb borrowing costs above the baseline rate to pull middle-income buyers into the market.

    Property firms used the influx of bank liquidity to recover capital locked in unbooked apartments. Hassan Bakhshi, chairman of the Association of Builders and Developers, confirmed that the release of purchasing funds allowed builders to restart stalled balance sheets across major urban centres.

    Commercial banks continue to enforce strict paperwork requirements, rejecting applications lacking formal clearance from agencies such as the Sindh Building Control Authority. Most self-built residential developments fail those compliance hurdles, keeping retail lending volumes below developer expectations despite broader sector gains.

    Capital Shifts from Dubai Drive Karachi Land Values

    Regional instability, including military conflict involving the United States and Iran, halted retail investment outflows from Pakistan into Dubai real estate. Domestic investors redirected liquidity into home markets, triggering sharp price jumps in prime Karachi neighbourhoods.

    Defence Society property valuations climbed as much as 60 per cent during the initial capital flight before settling. The market underwent a 20 per cent price correction over the past month as initial transaction spikes normalised.

    For retailers, materials suppliers and real estate operators, the shift re-establishes Karachi as the primary repository for private wealth during Gulf market downturns. The domestic concentration of funds provides steady consumer liquidity for local retail developers, even as general inflation strains lower-income households.

    Infrastructure Budgets Accelerate Allied Trades

    Development momentum also stems from central government infrastructure spending. Public Sector Development Programme outlays grew 41.8 per cent during the first half of fiscal 2026, bouncing back from a 1.1 per cent contraction during the prior comparative period.

    Building materials pricing remains disputed between suppliers and contractors. While official figures point to falling wholesale material rates, developer groups maintain that actual project input costs remain historically elevated.

    The broader market faces a nationwide structural shortfall of 10 million housing units, with 48 per cent of the domestic population living below the poverty line. Bank mortgage compliance rates under the 5 per cent financing facility remain the immediate metric to watch as secondary city developers prepare second-half unit releases.

  • Development Bank of the Philippines Faces 4 Billion Pesos in Overdue Builder Loans

    Development Bank of the Philippines Faces 4 Billion Pesos in Overdue Builder Loans

    The Development Bank of the Philippines holds 4.09 billion pesos in overdue loans under its builder financing scheme. State auditors uncovered the bad debt during a review of the state lender’s credit books.

    Those bad loans account for 61.4 percent of the 6.67 billion pesos still owed under the bank’s Infrastructure Contractor Support facility, known as ICONS.

    Auditors at the Commission on Audit found the lender repeatedly released funds without checking on-site building progress. DBP launched ICONS in 2017 to provide liquidity for public-private partnerships and public works under the Duterte administration’s Build, Build, Build campaign. Under program rules, contractors pledged project receivables for bridge financing. Loan releases required verification of actual construction milestones. Instead, credit officers disbursed cash against projected contract values rather than finished work.

    Missing Verifications and Terminated Contracts

    A 300-million-peso facility given to a contractor on five state corporate projects shows how controls broke down. DBP approved the credit line in August 2019. The borrower drew down the entire sum by March 2020. It then claimed completion rates between 75 percent and 81 percent on its two largest contracts. DBP accepted those numbers and released the cash without sending inspectors to the sites.

    By June 2020, three months after drawing the final tranche, the builder stopped servicing the debt. DBP waited until March 2021 to check progress with site engineers. They found wide gaps between reported and actual construction. State agencies had already canceled two contracts in September 2020 due to delays. By January 2026, the government project owner confirmed four contracts were formally terminated and the fifth was settled in late 2021. That left zero receivables for the bank to seize. DBP had to provision for the entire 300 million pesos as a total loss.

    Subcontractors and Broken Collection Lines

    Similar lending failures spread across regional branches and multiple accounts. Another borrower owed 490.46 million pesos at the end of 2025 despite finishing projects between 2017 and 2021. Audit checks showed the firm subcontracted out almost all the work. It held an average financial stake of just 3.5 percent in project costs. Instead of paying down debt, it rolled over the principal.

    Collection units also suffered long administrative freezes. At the Albay branch, an account defaulted in June 2021. Officers sent their first demand notice by email four years later in July 2025. That account rotated through six loan officers, leaving 97.24 million pesos unpaid on an original 100-million-peso loan. In Tacloban, foreclosure on an 82.21-million-peso balance stalled because the branch had no in-house lawyer. Staff had to route enforcement through legal teams in Zamboanga.

    Mounting Pressure on State Balance Sheets

    The collapse of ICONS exposes the operational risks of factoring receivables without strict escrow controls. Private lenders in Southeast Asia use automated lockbox accounts. Project owners pay directly into escrow before money reaches builders. DBP bypassed these firewalls and relied on paper schedules. That turned milestone-based loans into unsecured working capital.

    Lax oversight creates fallout for legitimate builders seeking state credit. When state lenders absorb bad debt, compliance teams tighten rules across the board. That drives up borrowing costs and slows disbursements for active civil projects. Central bank records show DBP’s gross non-performing loan ratio climbed from 7.05 percent in December 2025 to 9.52 percent in March 2026, before settling at 9.17 percent in June.

    Years of Internal Warnings

    Internal leadership knew about the breakdowns years before closing the program. The DBP board ordered an investigation into its 20 largest non-performing accounts, including the 300-million-peso loan, on January 19, 2022. Management still kept the facility running. The board finally approved the termination of ICONS on June 3, 2026.

    State audit authorities have instructed bank management to pursue negligence charges against credit staff and take legal action against contractors that pledged real estate collateral.

  • Tokyo Inner Ward Population Hits 9.8 Million as Density Reaches 15,600

    Tokyo Inner Ward Population Hits 9.8 Million as Density Reaches 15,600

    Tokyo’s 23 central wards added 1.2 million residents over the past two decades, pushing urban density to 15,600 people per square kilometre, as reported by Paul de Vries for The Japan Times in September 2026. The population in the inner wards now stands at 9.8 million.

    Construction firms and property developers have absorbed this influx primarily through two methods. Builders are erecting high-rise residential towers containing hundreds of units while buying standalone houses with private yards, razing the greenery, and replacing them with multiple narrow homes.

    Subdividing Plots for Housing

    Landed housing subdivisions now supply a steady stream of compact urban properties across residential wards. Replacing a single detached home with two or three townhouses increases plot yield for homebuilders. It also removes private gardens that previously provided urban tree cover and communal wildlife corridors.

    Tower developments concentrate hundreds of households onto single commercial footprints. These buildings offer high floor-area ratios but leave standard rooftops largely bare of functional green infrastructure.

    Pressure on Urban Greenery

    For residential property developers in Japan, plot subdivision remains the fastest way to bring infill housing to market without assembly delays. However, municipal planning offices face mounting heat-island effects in wards where open ground cover has vanished. Residential developers across Seoul and Singapore face similar constraints, but Japanese zoning codes give private landowners wider leeway to maximise structural footprints up to boundary lines.

    Institutional real estate investors holding multifamily residential assets in Tokyo face shifting tenant preferences. Renters and buyers in high-density districts increasingly seek access to private or communal outdoor spaces, creating a pricing gap between conventional concrete blocks and properties that integrate rooftop greenery.

    Rooftop Space Under Scrutiny

    Tokyo’s urban growth runs counter to Japan’s broader demographic decline, which has hollowed out regional prefectures while concentrating capital and labour in the Kanto region. Previous redevelopment cycles focused on expanding transport nodes and commercial office floors around central railway hubs.

    Attention is shifting to residential rooftop retrofits across the 23 wards as developers balance land costs against municipal open-space guidelines.

  • Chunghwa Telecom and Askey Deploy Mobile 5G for Construction Robots

    Chunghwa Telecom and Askey Deploy Mobile 5G for Construction Robots

    Chunghwa Telecom and Askey Computer rolled out a portable private 5G platform in Kaohsiung. The network runs autonomous construction robots across local social housing developments.

    Field trials are underway at two municipal residential sites, Shanming Anju and Shuixiu Anju in the city’s Siaogang District. Developed alongside robotics specialist ROSO, the setup pairs Chunghwa’s dedicated 5G spectrum with Askey’s relocatable network hardware. It controls multiple machines simultaneously.

    Mobile infrastructure for hazardous site work

    Standard job sites depend on fixed network wiring that crews build and tear down as phases advance. By contrast, the portable unit moves directly between active zones. It maintains continuous, low-latency links for field machinery without fixed cabling.

    Robots handle high-risk, repetitive tasks including surface grinding and chemical spraying. Moving heavy finishing work to automated systems cuts worker exposure to fine dust, toxic fumes, and physical strain during structural fit-outs.

    Pushing private networks past factory floors

    Taiwan’s Ministry of Economic Affairs funded the initiative through its Industrial Development Administration to expand private 5G beyond manufacturing plants and smart warehouses. Across East Asia, telecom operators face steady pressure to monetize enterprise 5G. They are embedding dedicated networks into heavy industry, infrastructure development, and commercial real estate workflows.

    Project partners will redeploy the portable network gear across additional public housing sites in Kaohsiung as structural phases wrap up in Siaogang.

  • Shingda Group Streamlines Operations: A Bold Move for Singapore’s Construction Industry

    Shingda Group Streamlines Operations: A Bold Move for Singapore’s Construction Industry

    In a strategic move to elevate its IT capabilities, Shingda Group, a civil engineering and construction powerhouse based in Singapore, has embraced a cutting-edge cloud management platform. This innovation aims to enhance operations across remote construction sites, where digital resources are often sparse.

    By implementing a hub-and-spoke VPN architecture, Shingda has streamlined connectivity and fortified security across various locations, bridging its remote sites to headquarters with newfound efficiency. The company selected Zyxel Networks’ Nebula cloud management platform for this pivotal transition.

    Since its deployment, Shingda reports an impressive 60 percent increase in network management efficiency. The IT team is experiencing a remarkable transformation, completing troubleshooting and configuration tasks up to 70 percent faster, saving valuable time and resources.

    “We needed a solution that would keep our sites connected, secure, and manageable,” shared Joshua Pek, IT Manager at Shingda Group. The integration with Zyxel Networks’ equipment allows the IT team to swiftly diagnose and resolve issues from a single, unified dashboard — no more juggling multiple tabs like a circus performer just to configure devices!

    Building a Centralized Network for Enhanced Control

    Shingda Group’s revamped network infrastructure features GS1920 Series smart managed switches with Power over Ethernet (PoE) capabilities and WAX510D WiFi 6 access points, ensuring robust connectivity even in high-density environments. Security is prioritized via ATP Series firewalls and branch devices such as the ATP200, SCR50AXE, and USG20-VPN.

    All these components are seamlessly managed through Nebula’s centralized cloud platform, offering full network visibility and automatic topology mapping. This centralized approach eliminates the need for spreadsheets to track IP addresses or credentials, liberating staff from cumbersome manual processes.

    As a result, team members now enjoy streamlined logins, reliable WiFi coverage, and uninterrupted site-to-site connectivity, allowing them to focus on what truly matters — the projects at hand.

    Questions & Answers

    What prompted Shingda Group to adopt a cloud management platform?
    The company aimed to modernize its IT infrastructure and improve operations at remote construction sites where resources are typically limited.

    How has the implementation of the Nebula platform impacted Shingda’s network management?
    Shingda reports a 60 percent boost in network management efficiency and a significant reduction in the time needed for troubleshooting and configuration tasks.

    What key features does Shingda’s new network setup include?
    The network setup includes GS1920 Series smart managed switches, PoE-enabled WiFi 6 access points, and robust ATP Series firewalls, all managed through Nebula’s centralized cloud platform.

  • Asia’s Construction Insurance Market Set for Robust Growth in 2024!

    Asia’s Construction Insurance Market Set for Robust Growth in 2024!

    Insurers in the construction sector across Asia are gearing up for a robust year in 2024, as highlighted in Aon’s 2025 Global Construction Insurance and Surety Market Report. The report underscores a growth-oriented atmosphere buoyed by enhanced reinsurance treaty performance, a strong underwriting appetite, and ample capacity.

    Long-Term Stability and Profitability

    While the momentum is palpable, insurers are also focused on achieving long-term profitability and stability, which is fostering greater underwriting discipline, even as some markets soften. A delicate balance of risk and reward is becoming the sweet spot for companies navigating these waters.

    Favorable Conditions in Key Markets

    China, Hong Kong, and India stand out as the beacons of favorable insurance market conditions. These regions have witnessed impressive growth, particularly India, where local and foreign insurers have rallied behind infrastructure expansion efforts. In China, insurers are offering modest premium reductions for low-risk profiles, with reinsurers showing an increased appetite for catastrophe exposures—a vital trend given the region’s vulnerability to natural disasters.

    Challenges in Japan

    Conversely, Japan is undergoing a modest hardening cycle, where regulatory scrutiny has prompted insurers to adopt more conservative strategies, impacting the management of large and complex risks.

    Mixed Signals in Southeast Asia

    In Southeast Asia, markets in Singapore, Thailand, and Malaysia are witnessing moderate conditions, while Australia boasts a surge in construction activity across real estate and infrastructure sectors. The post-pandemic boom in residential development has shifted insurer priorities, sparking a rising demand for latent defects insurance and internal water damage protections. Detailed water management plans and strong contractor risk mitigation strategies are proving essential to securing favorable terms.

    Competition in Real Estate

    The real estate sector remains fiercely competitive with robust local insurer capacity. However, ambitious civil engineering projects, especially those involving underground works or exposure to natural catastrophes, are still testing insurer capacity and pricing structures. These complex and high-risk projects often necessitate international market support or unique risk transfer solutions.

    Emerging Trends in Technology-Driven Construction

    The rise of technology-driven construction—think data centers, battery plants, and semiconductor factories—is emerging as a vibrant growth area. Australia, in particular, is seeing insurers respond enthusiastically to defense-related infrastructure projects, propelled by increasing government investment projected through 2029. While the market remains rich in capacity and competitive for preferred risk types, insurers are proceeding with caution concerning catastrophe risks. Therefore, larger, more intricate projects might require tailored insurance structures like excess-of-loss (XOL) or alternative risk transfer (ART) solutions to adequately address coverage needs. If all else fails, you may need to put on a superhero cape to navigate these complexities!

    Questions & Answers

    What is driving growth in the construction insurance market across Asia in 2024? The growth is fueled by improved reinsurance treaty performance, strong underwriting appetite, and ample capacity within the market.

    Which countries are experiencing the most favorable insurance market conditions? China, Hong Kong, and India have reported sustainable growth, with India showing significant support for infrastructure expansion from both local and foreign insurers.

    How are insurers responding to large-scale civil engineering projects? Insurers are increasingly cautious about these projects, which often necessitate bespoke insurance structures to meet coverage requirements, especially due to the heightened risks associated with natural disasters.

  • Construction steel prices lowest in two months

    Construction steel prices lowest in two months

    Prices of construction steel have dropped by VND200,000 (US$8.50) per ton, the 10th decline in a row, to VND14.5 million, the lowest rate in the last two months.

    Companies like Hoa Phat, Viet Y, Viet Duc, and Viet Nhat have cur prices by a cumulative VND1.5 million per ton since early April.

    The Vietnam Steel Association attributed the lower prices to weak demand.

    However, the price reduction has helped boost production and demand in the last two months. Over 812,000 tons of construction steel were produced in May, up 14% from April, while 927,000 tons of the product were sold, up 26%, the highest growth rate since the beginning of this year, according to the association.

    Hoa Phat Group, which holds one-third of Vietnam’s construction steel market share, said it sold 530,000 tons of steel of all kinds in May, up 16% against April. Specifically, it sold 284,000 tons of construction steel, up 33%.

    Steelmakers said they experienced hardship in the second half of last year, saw improved performance in the first quarter of this year, and would make profits in the second quarter.

    However, VNDirect Securities Corporation said steel demand would remain weak throughout 2023.

    Total sales of construction steel and galvanized steel are likely to decrease by 9.2% and 7% this year to 9.5 million tons and 3.9 million tons, respectively, it predicted.

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  • Construction steel prices fall further

    Construction steel prices fall further

    The price of Vietnamese construction steel dropped to below VND17 million ($732) per ton, but contractors said this was still high.

    The Viet Duc Steel Company said it has lowered prices of steel bars and coils by VND300,000 per ton from July 1, while the Thai Nguyen Iron & Steel Joint Stock Corporation reduced the prices of steel coils by VND300,000 to around VND16.7 million per ton.

    The prices of a ton of steel coils produced by the Hoa Phat Group and the Vietnam-Italy Steel Joint Stock Company are VND300,000-600,000 lower than in June.

    The decline in prices of construction steel in the Vietnamese market over the past few weeks has been attributed to lower prices of steel billets in the world market.

    The most-traded steel rebar on the Shanghai Futures Exchange, for October delivery, closed down 2.9 percent at 5,014 yuan ($774.60) a ton.

    Another contributing factor is weaker demand for construction materials in some localities that have already entered the rainy season.

    However, many construction contractors said the prices of domestic steel products were still high, cutting deep into their profit, leaving them with smaller profits. Steel costs account for 10-30 percent of a construction project.

    Vietnam produced nearly 12 million tons of steel products of different kinds in the first five months of this year, a year-on-year rise of more than 38 percent while exporting nearly 2.8 million tons, up 80 percent.

    The country exported 1.1 million tons of steel to China in the five-month period, twice that of last year, according to the General Department of Vietnam Customs.

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  • CapitaLand tops out Raffles City Chongqing

    CapitaLand tops out Raffles City Chongqing

    CapitaLand has topped out the eighth and final skyscraper of Raffles City Chongqing, expecting to launch it in phases from the second half of this year. This follows the completion of the 200m-high bridge The Crystal which connects six of the towers. “The successful topping out of Raffles City Chongqing represents a new milestone in CapitaLand’s track record of building well-designed integrated spaces,” said Lucas Loh, president (China & investment management) of CapitaLand Group.

    “After six years of construction using state-of-the-art engineering technologies, we are proud to present in Raffles City Chongqing an iconic architectural form resembling a powerful sail surging forward on the historic Chaotianmen site.”

    Following Raffles City Chongqing’s structural completion, the group is now focusing on the interior fit-out works, including transplanting trees to enliven The Crystal sky bridge, which will feature the tallest observation deck across Western China.

    Retail offering

    The development’s five-storey shopping mall will house some 450 retailers of fashion, dining, lifestyle and entertainment.

    Anchor retail tenants committed to date include Chinese electric vehicle company Nio, which will open its largest showroom there, a 1500sqm space also serving as an “exclusive clubhouse” Nio owners.

    South Korean cinema chain CGV will open its 5600sqm flagship and popular bookstore Yanjiyou will open a regional flagship, featuring a lifestyle cafe and other creative and experiential offerings.

    Ole’ will operate a gourmet supermarket with a food hall serving a wide range of fresh produce and international specialties.

    In a tribute to the 3000-year-history of Chongqing, the mall will feature a dedicated zone to promote authentic Made-in-Chongqing products, such as local delicacies, handicrafts and souvenirs.

    Occupying 9.2ha, Raffles City Chongqing brings together a 235,000sqm shopping mall, 150,000sqm of Grade A office space, about 1400 residential apartments, Ascott Raffles City Chongqing serviced residence and InterContinental Raffles City Chongqing hotel.

  • Malaysia’s BLand earmarks RM1.05b property launches this year

    Malaysia’s BLand earmarks RM1.05b property launches this year

    Berjaya Land Bhd (BLand) plans to launch some RM1.05 billion worth of properties in 2019, mainly The Tropika in Bukit Jalil and Timur Bayu in Shah Alam, after a two-year hiatus. The group, via its subsidiary Berjaya Golf Resort Bhd, launched The Tropika over the weekend, a mixed development project with a gross development value (GDV) of RM720 million, comprising 868 residential units across four towers.

    BLand senior general manager of property marketing Tan Tee Ming expects The Tropika in Bukit Jalil to be the main revenue contributor for the group’s property segment this year.

    The Tropika is located on 6.5 acres of freehold land in Bukit Jalil. There are four different types of units, namely Type A, Type B, Type C and Type D measuring 732 sq ft, 974 sq ft, 1,318 sq ft and 1,251 sq ft respectively.

    Tan said units of the first tower is priced at RM725 psf and every subsequent tower will increase RM50 psf.

    “There are two market segments that we want to cater for in The Tropika. We thought of the buyers in mind and the first segment is young families. We also want to focus on investors. We know that there will be a rental market for the apartments that we build here,” Tan told the media.

    The Tropika is within close proximity to SJKC Lai Meng, International Medical University and Asia Pacific University, as well as the Bukit Jalil Complex, the Bukit Jalil Recreational Park and the Bukit Jalil Gold & Country Resort.

    Surrounding the four residential towers of The Tropika is a 2.9-acre deck equipped with 68 types of facilities.

    The commercial space of the project features a 23,695 sq ft grocer along with a two-storey dual frontage office lots ranging from 3,316 sq ft to 3,814 sq ft and retail space ranging from 752 sq ft to 1,677 sq ft.

    Completion of the commercial component will take two years while the residential towers will take four years.

    Tan said BLand is also planning to develop the 12-acre land next to The Tropika, where the Berjaya Property Gallery sits on, into a 1,500-unit residential project with managed healthcare.

    Meanwhile, he said the Timur Bayu development in Shah Alam has a GDV of RM330 million, consisting of high-rise and low-rise residential units. It is expected to launch the project in the third quarter this year.

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  • Vietnam’s Deputy PM wants Long Thanh airport construction to begin next year

    Vietnam’s Deputy PM wants Long Thanh airport construction to begin next year

    Construction of Long Thanh International Airport should begin next year with private funding prioritized, Deputy PM Trinh Dinh Dung has said. It has reached the highest level of priority since Saigon’s Tan Son Nhat has become overloaded, he said at a recent meeting. The deputy prime minister wanted the giant new airport in Dong Nai Province near HCMC to become an aviation hub for Southeast Asia.

    “If we get companies with deep pockets into the project, costs would surely be lower than using public funds or loans.”

    The Airports Corporation of Vietnam (ACV) recently proposed it should be the main investor.

    The ACV, which operates 21 airports in the country, said it could bring in the $1-1.5 billion needed for the first phase of the airport.

    It is currently working with the Ministry of Transport and Dong Nai authorities to acquire 1,800 hectares of land for the first phase.

    The ministry reported at the meeting that the consultancy consortium of the airport is now completing the preliminary design, which would be submitted next April.

    The ministry has instructed the consortium, JFV, to complete an environmental impact report by next month.

    JFV, comprising three Japanese, one French and two Vietnamese companies, will also need to submit a feasibility report for the airport by June.

    The Long Thanh International Airport, to be built in three phases over three decades, will become Vietnam’s largest airport.

    The first part is scheduled for completion in 2025 with a capacity of 25 million passengers a year. The next two phases will run from 2030 to 2035 and from 2040 to 2050.

    The total cost is estimated at $16 billion. Experts have warned that the cost could double every five years in case of delays.

    Once completed, the airport will have an annual capacity of 100 million passengers and five million tons of cargo.

    The tourism surge in Vietnam in recent years has resulted in a demand for upgrades to existing airports and construction of new ones.

    The country received 12.5 million air passengers last year, up 14.4 percent from 2017, according to the General Statistics Office.

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  • World’s first digital mall launched in India by Digital Mall of Asia

    World’s first digital mall launched in India by Digital Mall of Asia

    In a revolutionary development that could potentially redefine the global retail and e-commerce industries, Digital Mall of Asia (DMA), a first-of-its-kind digital e-commerce platform merging the real estate and the digital spaces, has announced the launch of its Noida mall. The launch took place at the company’s registered office in the Film City, Noida, setting an unprecedented example of how online portals and brick-and-mortar retailers can transcend the digital-physical divide to optimize their consumer outreach and revenue generation.

    An initiative by Yokeasia Malls Pvt. Ltd., DMA is a disruptive innovation by an Indian organization recreating the experience of a physical mall in the digital space. In an industry where most of the key names are being run or backed by foreign players, this unique and disruptively innovative initiative by Yokeasia Malls has the potential to put the novelties of Digital India on the world map.

    The Need

    The launch of DMA Noida addresses the challenges that retailers often face and empowers them to maximize their business footprint with innovative digital offerings and an unmatched value proposition. DMA operates on a zero commission model; retailers at DMA don’t have to pay anything apart from the rent, a major revolution in a space where all the major E-commerce players charge somewhere between 5-35 percent of the revenue. Moreover, the organization will provide an immediate settlement of all payments received, ensuring complete transparency and reliability. It is also working towards completely eradicating the issue of the sale of counterfeit or fake merchandise. These unique features, apart from its focus on digital innovation, makes DMA a powerful and pioneering presence in the e-commerce space, both in India and on a global level.

    The Solution

    Going beyond the concept of a typical e-commerce portal, DMA’s Noida mall will have 11 towers with 10 floors each, adding up to a total of more than 5,000 shops and an available inventory currently worth approximately Rs 500 crore. The mall will incorporate visual and sensory elements to offer an immersive, stimulating environment and will have dedicated towers for different categories such as men, women, kids, electronics, home and kitchen, education, financial services, food court, hypermarket, digiplex, and online nightclub. Fundamentally, DMA Noida has all the elements that make up a physical mall, albeit virtually.

    The Value Addition

    By creating a new ‘digital asset’ class providing attractive returns, DMA also envisions to transform the general perception towards the term ‘investment’ while ensuring security, profit, and convenience for investors. The shops in the Noida mall are available for both sale (to investors) and rental (to retailers), whereas the shops in the rest of the 20 cities are available only to rent at present.

    Commenting on the launch and the idea behind, Rishabh Mehra, Managing Director and CEO – Digital Mall of Asia, remarked, “We, at Digital Mall of Asia, are beyond ecstatic to launch our Noida mall and we are certain of its potential to bring about a revolution in the digital and retail space worldwide. This project is aimed at serving many purposes, from an industry-wide transformation to retailer empowerment through our zero-commission model. But most importantly, DMA is our effort against data colonization. I wholeheartedly agree with Mr Mukesh Ambani’s stance on how India’s data must be owned by Indians, and not controlled by global corporations. In this era of data-driven revolution, we hope that DMA’s disruptive innovation sets an example for our contemporaries to follow through and bring the ownership of Indian data back to where it belongs – in our own hands.”

    The launch in Noida also marks DMA’s first step towards a pan-India launch in 20 cities including New Delhi, Mumbai, Bengaluru, Pune, Chandigarh, Jaipur, Lucknow, Coimbatore etc. After a pan-India expansion, DMA plans to expand its operations across the Asian market and has already begun the process of seller registration in China, Japan, South Korea, Malaysia, Thailand, Indonesia, and Singapore.

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  • Vietnamese firm seeks main investor status in Long Thanh airport

    Vietnamese firm seeks main investor status in Long Thanh airport

    The Airports Corporation of Vietnam (ACV) desires to be the main investor in the Long Thanh International Airport. ACV, which operates 21 airports in the country, has proposed that it contributes more than a quarter of the $5.4 billion needed to build the new Long Thanh International Airport. Lai Xuan Thanh, chairman of ACV, said that the corporation is ready to contribute $1-1.5 billion needed for the first phase of the mega airport to be built in Dong Nai Province, neighboring HCMC.

    In a proposal to the Ministry of Transport, ACV has said that its initial contribution will be used for major components of the airport including the terminal, runways, parking lots and cargo areas, worth a total of $3.77 billion, according to the Vietnamese government’s website.

    The airport operator is currently working with the Ministry of Transport and Dong Nai authorities on acquiring about 1,800 hectares for the first phase of the airport.

    Most of the targeted area is now covered by plantations belonging to the Dong Nai Rubber Corporation where 200 families reside.

    The Ministry of Transport has asked the consultancy consortium of the airport, JFV, to finish an environmental impact report next month.

    The consortium, comprising of three Japanese, one French and two Vietnamese companies, will also need to submit the feasibility report for the airport by June.

    In turn, the ministry “will submit the feasibility report to the National Assembly in October. If it is approved, bidding will start in 2020 and construction in 2021,” Transport Minister Nguyen Van The told local media recently.

    The Long Thanh International Airport, to be built in three phases over three decades, is set to become Vietnam’s largest airport.

    The first part is scheduled for completion in 2025, when the new airport will be able to handle 25 million passengers a year. The next two phases will run from 2030 to 2035 and from 2040 to 2050.

    Experts have previously warned that the construction cost of the airport could double every five years.

    Lying 40 kilometers east of HCMC, the airport is expected to take up the overflow from the largest existing airport in the country, Tan Son Nhat International Airport.

    Once completed, Long Thanh International Airport will have an annual capacity of 100 million passengers and five million tons of cargo.

    The tourism surge of recent years in Vietnam has resulted in demands for an upgrade of existing airports and construction of new ones.

    The country welcomed 12.5 million air passengers last year, up 14.4 percent from 2017, according to the General Statistics Office.

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  • Vietnam’s largest airport set for $496 million expansion

    Vietnam’s largest airport set for $496 million expansion

    The Tan Son Nhat Airport could get a third terminal and other facilities at the cost of over $496 million. The Airports Corporation of Vietnam (ACV), which manages and operates civil airports in the country, has submitted to the Ministry of Transport a pre-feasibility report on the construction of a third terminal (T3) at HCMC-based Tan Son Nhat International Airport to reduce overload.

    T3 will be designed to have a capacity of 20 million passengers per year, with total floor area of about 100,000 square meters. ACV proposes to construct in tandem an additional airport apron, a two-lane overhead path, a 5-lane viaduct in front of the terminal and a multi-storey car park. The total cost is estimated at over VND11.43 trillion ($496.18 million).

    The completion of feasibility reports and selection of construction blueprints is set to be finished in February 2020.

    Once T3’s design has been approved, contractors will be chosen via a tendering process so that construction starts in the third quarter of 2020 and can be completed in the second quarter of 2022.

    Because the construction area is located on the Defense Ministry’s land, ACV has suggested allowing a temporary handover of the site in Q1 next year for construction along with completion of necessary legal procedures.

    There are also plans to expand existing terminals T1 and T2 of the Tan Son Nhat airport, raising their combined capacity to 30 million passengers per year.

    The airport currently handles 36 million passengers per year, which is way above its designed capacity of 25 million.

    The Transport Ministry has hired French consulting firm ADPi to work on the plan alongside local firms. The plan proposed by ADPi was approved by the Prime Minister last March and it formed the basis for the new, detailed version.

    ACV has also proposed to the Ministry of Transport that it be assigned as investor for the construction of essential components for the proposed Long Thanh International Airport, including passenger terminal, flying zone (runway, taxiway, apron), and refueling systems.

    ACV chairman Lai Xuan Thanh said that the company is willing to spend between $1-1.5 billion for constructing the first phase of the proposed airport, which is estimated to cost $5.4 billion.

    The Long Thanh Airport, to be built in three phases over three decades, was recently listed by CNN Travel as one of the world’s 16 most exciting airport projects.

    The first phase is scheduled for completion in 2025 when it will be able to handle 25 million passengers annually. The next two phases will be built in 2030-2035 and from 2040-2050.

    The new airport would have an annual capacity of 100 million passengers and five million tons of cargo when completed.

    ACV has announced that in its 2019 plan, the company will spend more than VND10 trillion ($432.71 million) on upgrading and expanding several airports, including Cat Bi in northern Hai Phong City, Vinh in central Nghe An Province, Phu Cat in central Binh Dinh Province, and Noi Bai in Hanoi.

    Most of these upgrades are expected to be completed by the third quarter of 2019.

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  • Malaysian office space to remain vibrant despite influx of new supply

    Malaysian office space to remain vibrant despite influx of new supply

    The Klang Valley office market is expected to remain vibrant this year, despite the influx of new buildings which is expected to affect occupancy rates, said Knight Frank Malaysia. “Due to the influx of new buildings, particularly in TRX, occupancy rate in Kuala Lumpur city is expected to decline marginally. However, rental rates will continue to hold steady as newer buildings tend to command higher rental rates,” it said in its Real Estate Highlights 2nd Half 2018 report.

    The report highlighted the trend of co-working and shared services as a sweet spot in the challenging office market environment.

    Labelled “space as a service”, the rising popularity of this market segment is demand driven by freelancers, start-ups and small and medium sized entrepreneurs. Knight Frank expects to see active take-up by co-working, shared services and IT related industries this year.

    “Moving into 2019, occupancies in selected sub-office office markets are expected to be under pressure due to heightened competition from impending and existing office stock while rentals will continue to hold steady as newer buildings tend to command higher rates.

    “We continue to observe active enquiries and leasing activities in the co-working and IT related segments. Also, an increasing number of older buildings are looking into repositioning and refurbishment to meet current occupier needs,” said Knight Frank Malaysia executive director of corporate services Teh Young Khean.

    Dated but well located office buildings such as Menara Weld, Menara Standard Chartered, Menara Maxis and Menara Milenium will reportedly be undergoing repositioning/upgrading works to improve their market competitiveness in terms of rental and occupancy levels.

    Knight Frank noted that the new government’s concerted efforts to implement numerous regulatory reforms will augur well for the business operating environment and this is expected to be positive for the country’s economic and property market performance over the longer term.

    Looking back at 2H2018, the cumulative supply of purpose-built office space in Kuala Lumpur and Selangor stood at 103.17 million sq ft following the completion of six buildings with a combined space of 1.84 million sq ft.

    In 1H2019, office buildings slated for completion include The Exchange 106, Menara Prudential, Menara Star 2, 1Powerhouse and Symphony Square.

    Overall occupancy rate for Kuala Lumpur city was about 78.7% in 2H2018 compared with 79% in 1H2018. The overall occupancy rate for decentralised office locations in Kuala Lumpur fringe fell to 82.2% from 83.8% during the same period.

    In Selangor, overall occupancy was slightly lower at 78.3% in 2H2018 compared with 79.2% in 1H2018.

    The average rentals in Kuala Lumpur fringe and Selangor rose marginally in 2H2018 to RM5.75 psf and RM4.22 psf respectively compared with RM5.72 psf and RM4.20 psf respectively in 1H2018.

    However, average rental in Kuala Lumpur city remained flat at RM7.15 psf as owners and landlords of newer office buildings offered competitive rental and attractive tenancy terms to improve take-up.

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