SOUTHEAST ASIA OUTLOOK 2025

Southeast Asia Outlook 2025: Long-Term Growth Prospects Remain Intact

INDUSTRIAL DEMAND FUELS SURGE IN REAL ESTATE INVESTMENT SALES

SEA Investment Sales 1,2 by Property Type

20

18

16

14

12

10

8

6

US (Billions)

4

2

-

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

O ffi ce Industrial

Retail

Hotel

Apartment Others

Despite a heightened interest rate environment, real estate investment sales 1 in SEA reached US$17.2 billion in 2024, a 16% yoy increase. Seen as a stable proxy for Southeast Asian growth, Singapore continues to draw investor interest, with a yoy increase of 11% in 2024. Investment sales volumes were led by the industrial sector, followed by office and retail assets. Notably, industrial investment sale volumes in Singapore and Southeast Asia surpassed office and retail investment sales for the first time in the last decade, highlighting the sector’s growing appeal. After Singapore, Malaysia saw a significant increase in investment sales volumes (around 51% yoy increase), with investment volumes bolstered by the sale of retail malls, data centres and logistics assets. Thailand too, saw almost three-fold yoy rise in investment sales, driven by hotel investment sales amidst a robust tourism recovery in the region.

Source: RCA, Cushman & Wakefield Research Note: 1 Data updated on 31 January 2025 2 Defined as real estate sales excluding development land from RCA

Top 3 Property Sectors by Country (2024)

Singapore 5.6B 2.8B

Malaysia

2.2B

1.4B

1.1B

0.4B

SEA Real Estate Investment Sales 1,2 by Country

Industrial

Office

Retail

Industrial

Retail

Hotel

20

Thailand

Indonesia 1 0.5B 0.01B

18

16

0.4B

0.2B

0.05B

0.01B

14

12

10

Hotel

Industrial

Office

Industrial

Hotel

Office

8

US (Billions)

6

Philippines 1 0.3B 0.05B

Vietnam 1 0.08B

4

2

-

2015

2016 2017

2018

2019 2020 2021

2022 2023 2024

Singapore Malaysia Thailand Indonesia Philippines Vietnam Others

Industrial

Retail

Industrial

Source: RCA, Cushman & Wakefield Research Note: 1 Data updated on 31 January 2025 2 Defined as real estate sales excluding development land from RCA

Source: RCA, Cushman & Wakefield Research Note: 1 Investment sales transactions figures may not be comprehensive, as some deals may not be publicly disclosed. Additionally, development land sales, which typically account for a substantial portion of transactions, have been excluded from these numbers.

10

11

CUSHMAN & WAKEFIELD