Brunei: Commercial Property
Commercial Property Market
Much commercial development is focused on the capital, Bandar Seri Begawan, including shopping malls and office complexes. Other developing regions include Gadong and Kiulap. Gadong's shopping mall is the largest in the country, with more than 150 retail units.
Like other Asian locations, Brunei has seen a boom in commercial development over the last ten years, briefly interrupted by the global debt crisis in 2008 and 2009, which has led to over-supply, particularly in the retail sector.
The state has been quite active in supporting commercial and industrial development, mostly through BEDB (the Brunei Economic Development Board) which was set up by the Sultan in 2001. An Infrastructure Development Strategy was formulated to ensure continued investment by government and through public-private sector partnerships in developing and maintaining world-class infrastructure. The strategy calls for:
- The provision of adequate social infrastructure particularly public housing, healthcare and education;
- Adoption of appropriate legal and regulatory frameworks to promote investment in social and industrial infrastructure, including privatisation and public-private partnerships (PPP);
- Ensuring that funding is available for all priority government infrastructure projects;
- Reviewing the way government infrastructure contracts are awarded and managed in order to ensure that these contracts are implemented on time and cost effectively.
The BEDB says that its plans for the mixed-development of Pulau Muara Besar will create new opportunities for large scale investment in the areas of urban development, township, residential or commercial property development.