Mixed sentiment, outlook for Asean property investment: CBRE, ASEAN Business


NOVEMBER 14, 2019

The tight lending environment has prompted local developers to become more open to joint ventures with foreign investors. There are also ample debt investment opportunities for foreign investors willing to provide development financing.

Weaker economic growth weighed on investment sentiment, with retail investment currently unattractive due to weak domestic consumption demand and changing consumer behaviour.

The Bangkok office market is set to become more challenging with a large volume of upcoming supply.

Market sentiment was subdued amid weakening economic growth and a slowing residential market. Strong e-commerce growth has hurt consumer demand for malls and department stores.

Foreign investors have focused on industrial property. Logistics is a popular sector, with high-spec warehouses of particular interest.

Investment activity stayed robust, supported by major office sales. Interest in the hotel sector is rising alongside growth in visitor arrivals, with mid-range hotels especially benefiting.

There has also been "growing interest from new-to-market investors based in Hong Kong drawn to Singapore's stability"