Thailand Investment MarketView Q4 2011 The impact of the floods that affected Bangkok in Q4 2011 was that developers were more cautious about buying development sites. There were few income producing buildings on the market but we feel that investors became more cautious wanting to wait until the full extent of the floods and their [...]
Published on Bangkok Post dated 18 October 2011 Despite renewed concerns about the state of the global economy and the euro-zone debt crisis, Bangkok residential yields remain firm with gross yield average at 5.9%, says property consulting firm CBRE. Over the last six quarters,downtown Bangkok condominiums have consistently provided an average yield within a narrow [...]
OVERVIEW • The global economy presented no shortage of economic headwinds and obstacles for commercial real estate in Q2 2011; nevertheless, property sector fundamentals continued to improve. With the relative drought of new construction, tenants continued to face a shortage of preferred space, which either stabilized or placed upward pressure on rents. • Elevated by [...]
OVERVIEW • Industrial production slows in aftermath of Japan earthquake Industrial production in Asia Pacific slowed in the second quarter as the March 11 earthquake in Japan disrupted regional supply chains. The negative impact is expected to be short-term, however, with the automotive and electronics sectors in Japan already beginnning to restore production capacity. Strong [...]
OVERVIEW • Big drop in transaction volume as investors in Asia tread more carefully Transaction volume in Asia Pacific totaled US$9.0 billion in the second quarter of 2011, a decline of 39% q-o-q, as investors in Asia turned more cautious following the March 11 earthquake and tsunami in Japan and the worsening economic picture in [...]
OVERVIEW • Buyer sentiment weakens amid further tightening measures Tightened mortgage lending and rising interest rates continued to impact on buyer demand in most Asian markets in the second quarter of 2011, Concern over the regional economic outlook rose as the economic situation in the United States and Eurozone worsened in July, and further deterioration [...]
Overview • Expansionary demand focuses on China whilst flight-to-quality increases Demand for prime office space in Asia Pacific continued to grow in the second quarter with corporate remaining focused on expanding in the key Greater China markets. However, further deterioration of the economic situation in the United States and Eurozone would have a knock on effect [...]
This was a new record for quarterly arrivals. According to the Airports of Thailand Public Company Limited (AOT), international disembarkations at PhuketInternational Airport were 649,335, an increased of 26% Y-o-Y. The Average Daily Rate (ADR) of upscale hotels decreased by 1.9% Y-o-Y. Luxury hotels saw a small decline in ADR of 4.7% Y-o-Y. First-class and [...]
Condominium developers started 2011 in a cautious mood and we saw few of the large listed companies launching new developments. The size of the developments in terms of unit numbers were smaller and there were more nonlisted developers than listed developers. One of the largest launches for the lower end of the market was Lumpini [...]
We are seeing a recovery in both the resort villa and condominium market in Phuket. The market today is very different from the one that existed before the global financial crisis. The “west is best” in terms of location. The villa market is improving at the top end but most activity is in the low [...]
The number of disembarking international passengers at all AOT-managed airports in Bangkok increased by 9% Y-o-Y while tourism in Phuket grew strongly with the number of disembarking international passengers increasing by 26%Y-o-Y in Q1 2011. As the result of the growth in the tourism market in Bangkok, the average occupancy of upscale hotels in Bangkok [...]
Total Serviced Industrial Land Plots (SILPs) sales increased from 882 rai (352.8 acres) in Q1 2010 to 1,187 rai (474.8 acres) in Q1 2011 which is a 34.6% increase Y-o-Y but a 39.8% decrease Q-o-Q. In Q1 2011, the total supply of SILPs remained unchanged at 103,769 rai (41,507.6 acres). This was a 1.3% increase [...]
There was still demand for development sties but condominium developers were possibly becoming more cautious because the market slowdown in Q1 2011. Although the Bank of Thailand increased the policy interest rate by 25 bps twice this quarter to 2.50% per annum, yields for property investments did not change significantly and money is still being [...]
Bangkok Retail MarketView Q1 2011 The economic recovery in the fourth quarter of last year improved consumer confidence which had a knock on impact on shopping patterns, with increased retail spending this quarter. Supply is set to increase going forward, based on projects already announced, an additional 0.77 million m2 will be completed within the [...]
Phuket Residential MarketView Q3 2010 In the third quarter we saw a continued recovery in tourism arrivals and expect that this trend will continue into the high season in the fourth quarter. The best performing sectors of the property market were in the very best properties that have sea frontage with an established reputation and [...]
