Bangkok's real estate market witnessed significant activity between July and September 2024, with the addition of eight new hotels, which collectively opened 1,534 new rooms, according to a report by JLL. The new establishments included notable names such as the luxury Dusit Central Park, located strategically within the Silom area, which features 259 rooms. With investor confidence rising, Thailand is increasingly regarded as a key hotel market within the Asia-Pacific region.
Year-to-Date (YTD) September transaction volumes for Thailand’s hotel investment reached approximately USD 404 million. The demand for prime locations, especially within Bangkok, continues to see intense interest. The momentum is likely to sustain throughout the year, potentially reaching around USD 450 million by the end of 2024, bolstered by recent visa regulation changes intended to attract international tourism.
Further enhancing tourism appeal, Thailand has expanded its visa-free entry scheme from 57 to 93 countries, facilitating easier access for tourists and increasing inbound demand. This move is timed perfectly with the upcoming peak holiday season, signaling strong potential for the fourth quarter.
Meanwhile, across the Australian continent, Adelaide has also reported positive trends within its industrial sector. Recent data from JLL indicates the addition of 25,400 square meters of new industrial space during Q3 2024. Currently, twelve major construction projects are underway, totaling 159,000 square meters. Notably, 66.7% of these projects have been pre-committed, highlighting the consistent occupier demand.
The largest active project is the 26,000 square meter development at 1-4 Enterprise Drive, Salisbury South. Despite facing challenges such as rising land costs and delays due to regulatory bodies, occupier demand continues to strengthen, with gross take-up reaching 49,600 square meters during the quarter. This figure surpasses the average quarterly gross take-up recorded over the last decade.
Rents for industrial properties across Adelaide are on the rise. Average prime net rents are increasing as demand persists, particularly for large facilities. The Australian market is experiencing nuanced trends, with the major misinformation clouding the developments from shrinking opportunities for new lease movements to rental growth, likely affected by the state of the broader economy.
Shifting focus to Brisbane, industrial transaction volumes totaled AUD 221.8 million—below the 10-year averages for the area, yet signifying tenant interest as demand for industrial space heightens. JLL’s reports note fluctuations across various precincts, with the Southern precinct seeing the highest net face rent growth at 1.6% quarter-over-quarter.
Another noteworthy trend came from the residential property sector, particularly within Bengaluru, India, where prime apartment sales plummeted by 31% during Q3 2024. But analysts predict this dip to be temporary, attributing the slowdown to higher land prices and bureaucratic delays rather than lack of buyer interest. Notable developments by key players like Prestige Group and Godrej Properties still managed to register significant sales during this quarter.
Despite the sales downturn, Bengaluru has experienced capital value increases by 3.3% and rents by 0.9% quarter-over-quarter, driven predominantly by demand for luxury residences. With the festive season approaching, many expect there to be revitalization within the market, with property developers gearing up for new launches.
Overall, the Asian real estate market shows promising resilience and adaptability amid changing economic circumstances. The collective data from various regions, from new hotel developments to fluctuated sales figures, provides insight not just about individual markets but reflects broader regional trends. Investors are closely monitoring these developments as opportunities for growth emerge across different segments.
Market sentiment remains cautiously optimistic, fueled by sustained investment activity and consumer demand. While challenges like rising costs and bureaucratic delays pose challenges, the industry's recovery measures and strategic developments signal potential for continued growth as the market prepares to embrace the festive season and beyond.
