Southeast Asia Outlook 2024

Southeast Asia Outlook 2024: Opportunity Beckons

CUSHMAN & WAKEFIELD

STEADY INVESTMENTS

Despite a heightened interest rate environment, SEA property investment sales held steady in 2023, similar to levels in 2022. Total investment sales in 2023 reached US$16.0 billion. Singapore investment sales drove most volumes (77% of 2023 sales), though emerging SEA took a larger share of volumes in 2023 with an increase in investment volumes seen for Malaysia, Indonesia and Philippines. In Singapore, transaction volumes was driven by a slew of suburban retail mall sales while in Malaysia, industrial investment sales dominated. Across Indonesia, Vietnam, Philippines and Thailand, a slew of retail and hospitality deals were observed, as investors bet on recovering tourism and resilient domestic consumption.

Investors have taken a renewed focus on the retail market, particularly in Singapore, with retail investment volumes overtaking office for the first time in a decade. SEA retail investment sales contributed slightly more than one-third of investment sales volumes, with an equal split between offices and industrial properties. This trend was skewed towards Singapore which saw the completion of several suburban prime retail mall transactions (value-add opportunities) in 2023.

Excluding Singapore, investment volumes skew sharply towards the industrial market, as investors bet on new economy assets and sectors. For example, in Malaysia, industrial volumes was driven by a US$0.4 billion-dollar investment by Malaysia’s sovereign wealth fund and state-owned institutional investors into Osram Opto Semiconductors manufacturing facility.

SALES RETAIL TOPS INVESTMENT SALES

RISING INVESTMENT SALES

INVESTMENT SALES IN 2023 BY PROPERTY TYPES

Note: Excluding devt sites Source: RCA, Cushman & Wakefield Research

Note: Excluding devt sites Source: RCA, Cushman & Wakefield Research

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