Southeast Asia Outlook 2024

Southeast Asia Outlook 2024: Opportunity Beckons

CUSHMAN & WAKEFIELD

MARKET STATISTICS

OFFICE (GRADE A&B)

RETAIL (SHOPPING CENTER)

LOGISTICS (WAREHOUSE)

RESIDENTIAL (CONDOMINIUM)

85

326

14

Selling Price 14,889 psf

Rents Q4 2023 (THB psf pm) 2024 Forecast

X

X

X

X

X

X

X

22.8%

3.1%

20.34%

57.5%***

Vacancy Q4 2023 2024 Forecast

X X X X

Current Inventory (million sf)

21.8

10.6

59.98

476,118 units

Pipeline Supply (million sf)

7.5

1.4

7.5

5,315 units

THAILAND: BANGKOK MARKET SNAPSHOT

Pipeline supply over Current Inventory Ratio (%)

34.5%

13.1%

12.9%

1.1%

X X

Capital Value Outlook 2024

X

X

X

X

ECONOMY

Source: Cushman & Wakefield Research

* Grade A Shopping Mall, Department Store, and Community Mall Project in CRD areas *** Sold rate of new launched condominium

• Thailand’s growth for 2024 looks poised to exceed historical trend growth, on the back of a strong tourism recovery. • China and Thailand have mutually waived visa requirements for their citizens starting from March 2024, expected to elevate Chinese visitor levels to 75% of pre-pandemic levels, more than doubling the 2023 Chinese tourist tally of about 3.5m. • The inflation rate for the full year 2023 is now forecast at 1.4%. The unemployment rate fell to 0.99% in Q3 2023, down from 1.06% recorded in Q2.

RECENT SIGNIFICANT DEALS

PROPERTY NAME

PROPERTY TYPE

Price (mil USD) / US $PSF

NET YIELD (%)

BUYER

SELLER

DATE

NUE District R9

Proud Real Estate

Noble Development Condominium 190.7/ 210 psf

-

Q3 2023

CAPITAL MARKETS ANALYSIS

TIP 9 Industrial Project (D1-4, E1-4 and E6)

1. OFFICE: Moderate demand and large supply volume in the pipeline will continue to push vacancy rate higher. The new space and high vacancy will continue to exert pressure on landlords to align with corporate occupier requirements. 2. RETAIL: We expect to see a boom in Bangkok retail market revenues, although overall market growth may be cautious and will be nuanced between retail segments and locations.

3. LOGISTICS: Warehouse leasing activities continue to be robust, supported by burgeoning demand from Third-Party Logistics (3PL) Providers. 4. RESIDENTIAL: Looking head, the Bangkok condominium market is expected to continue to grow. Demand is forecast to rise from both domestic and foreign buyers.

Frasers Property TH Ind REIT

TIP Holding Company Limited

Industrial

47.3/ 62 psf

-

Q2 2023

Land at Wireless Road

Swire Properties, Sunny Ray Limited

Development Site

HKR International Ltd

70.9/ 520 psf

-

Q1 2023

Source: RCA, Cushman & Wakefield Research

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