SINGAPORE – Singapore (US$191,500 per person) has lost its top position to Qatar (US$198,000 per person) in 2015 built asset wealth per person ranking. Singapore held the top position previously in 2013. China has become the world’s richest country measured by the value of its built environment according to the latest Global Built Asset Wealth Index published by Arcadis, the leading Design & Consultancy firm for natural and built assets.

The index, which was compiled for Arcadis by the Centre for Economics and Business Research (Cebr), calculates the value of all the buildings and infrastructure that contribute to economic productivity in 32 countries, which collectively make up 87% of global GDP.

Asian countries occupied three out of top five positions in the built asset wealth per person ranking.  Singapore has the highest built asset wealth per person in Asia followed by Hong Kong (US$160,000) and Japan (US$143,500).

Chris Graham, Head of Business Advisory, Singapore at Arcadis comments: “Despite losing its top position in the built asset wealth per person ranking, Singapore’s sustained performance of this small, densely populated island state reflects a continued and focused investment in infrastructure.  It has retained a high end manufacturing industry and continues to be a desirable environment to live, work and do business.”

Total built asset wealth now stands at an estimated US$218 trillion, which is the equivalent to US$30,700 per person alive today. China now has a built asset wealth of US$47.6trillion, overtaking the USA which comes in second place with a wealth of US$36.8trillion. Since 2000 China has invested US$33 trillion in its built assets, a total that exceeds all other economies combined. The growth is evidence of China’s unprecedented level of investment in its infrastructure – 9% of GDP – which dwarfs global competitors like the USA, which currently invests just 2%.

Adam Sutton, Asia Leader of Business Advisory at Arcadis explains: “The health and wealth of a nation can be measured in many different ways and while factors such as GDP or employment have great value, a prosperous society is underpinned by a well-developed built environment that meets the needs of its people and economy.”

Sutton continues: “China’s ranking this year marks a profound change in the global league table of the world’s wealthiest built asset nations. We believe that the China led Asian Infrastructure Investment Bank, which aims to beef up infrastructure development in Asia, will help China to continue to increase the lead over the US in the years to come.”

Unlike most mature markets, such as those of North America, Europe and Australia, a significant amount of infrastructure projects in China are driven by central government planning. Lands are released for development at ‘public’ auctions with strict stipulations and parameters around the amount of each asset class to be built.  It is critically important for the government to ensure the development of world class infrastructure to support its fast growing economy and the unprecedented levels of urbanization in China.”

The Asia Pacific nations on the Arcadis Global Built Asset Wealth Index are:

The shifting wealth to emerging economies

The Global Built Asset Wealth Index shows a dramatic shift of wealth to emerging economies, with the traditional economic superpowers – the G7 – showing a net decline in the value of their built assets since 2012. Structural assets depreciate at a rate of around 5% per year, meaning that this level of investment is the minimum required to maintain the status quo, a figure that equates to US$1.4 trillion in the US.

South East Asian economies including Indonesia, Thailand and the Philippines were amongst the biggest gainers.

Overall Arcadis Built Asset Wealth Ranking and Forecast

The full report can be downloaded here: 2015 Global Built Asset Wealth Index.

Article by Arcadis.

PERTH, AUSTRALIA – The site of what is projected to become Perth’s most valuable central city high rise apartment development is being brought to the market with the release of an International Expression of Interest campaign for the Kings Square 6 site in the heart of the Perth City Link project.

Owned by Seven Group Holdings Limited (“SGH”), the 3,334sqm site at 18 Telethon Avenue has already received development approval for a signature 563 apartment complex comprising twin 42 and 48 level towers.

The six week EOI campaign is being managed exclusively by JLL under the direction of its Director Sales & Investments WA, Sean Flynn and Head of Sales Investments WA Nigel Freshwater. Mr Flynn said JLL had been instructed by SGH to offer the site as either a freehold sale or joint venture opportunity.

The twin-tower unique staggered floorplate Kings Square 6 has been designed by award winning Woods Bagot architectural firm and is expected to become a centrepiece of the State Government’s $5.2 billion Perth City Link project which has reunited Perth’s CBD with the Northbridge cultural and entertainment precinct.

“The combination of location and amenity as well as the proposed development, which at more than 160 metres is expected to become Perth city’s tallest apartment project, creates a new city landmark as well as a benchmark apartment development,” said Mr Flynn.

“Based on a net saleable area of more than 38,000sqm, Kings Square 6 has a revenue potential in excess of (AUD) $400 million, additional to which would be continuing income from 504sqm of proposed ground floor retail and food and beverage tenancies,” he said.

Mr Freshwater said the 13ha City Link project which commenced in 2011 was increasingly regarded as one of Perth’s and Australia’s most successful CBD urban renewal projects that would, after more than 100 years, reunite the CBD with Northbridge.

When completed the Perth City Link project running between the Perth central railway station and Mitchell Freeway is expected to comprise more than 60,000sqm of prime grade office space, a high quality hotel and serviced apartments. Several major corporations have already taken space in the Kings Square office precinct including Shell Australia, John Holland and HBF.

“Amidst the overall development about one third of the  Kings Square precinct is being set aside for the Kings, Queens and Yagen Squares which will feature public parks and gardens for what is estimated to be used by about  several thousand people each working day,” said Mr Freshwater.

Mr Freshwater noted that Kings Square 6 had been designed to comprise studio, one, two and three bedroom apartments for more than 1,000 residents.
“Owners would enjoy sweeping 360 degree views to Rottnest Island in the west and the Perth foothills in the east, while also having access to a pool deck, gym, terraced gardens and alfresco dining areas on several levels of the building.”

Mr Flynn further stated that site is positioned within walking distance of a plethora of retail, entertainment and cultural amenities. For example the adjacent 15,000 seat Perth Arena, a vast array of the city’s premier department stores and boutique retail offerings in Perth’s marquee Hay and Murray Street Malls.

“Added to these is the State’s cultural hub comprising the Art Gallery of Western Australia, State Theatre, WA Museum, State Library, Cinema Paradiso, and Northbridge Piazza and outdoor public cinema. And if all of that isn’t enough there is the new Northbridge nightclub district which is undergoing a rapid process of gentrification,” said Mr Flynn.

Expressions of Interest close 2.00pm (WST) Wednesday, November 25 2015.