Asia Pacific hotel investment outlook and trends 2019

The Asia Pacific region is expected to be the standout region from a growth standpoint, with hotel investment volumes forecasted to grow by 15% year-on-year in 2019.

Japan is expected to be one of the most active markets in 2019, with investor sentiment driven by the 2019 Rugby World Cup and the 2020 Tokyo Olympic Games. Investment momentum will continue to rise as investors explore selling hotel assets to capitalise on the tourism boom.

Singapore is currently riding the wave of a boom in hotel land sales which has reignited the interest of would-be sellers who are considering to sell their hotel properties.

In a tightly held market such as Singapore, we expect to see heightened sales activity as owners exit at record prices and newcomers seek long-term strategic opportunities.

With sustained demand in international visitor arrivals, robust trading performance, continued infrastructure development and political stability, Thailan…

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APAC Real Estate Outlook in 2019

As global real estate markets prepare for another year in an extended cycle, the appeal of Asia Pacific’s markets remains an enduring and driving force for the industry in 2019.

North America has long been the most popular destination for institutional investor capital, especially among American and Asian investors.

However, the progressive rise in U.S. interest rates – and the prospect of more to come – are deterring some investors from expanding rapidly in the country, prompting a potential reallocation of capital towards markets in Asia Pacific.

“Transaction volumes in the APAC region were up 20 percent year-on-year to Q3 2018, with full year volumes expected to set another record,” says Nick Wilson, Director of Asia Pacific Capital Markets Research. “The growth momentum will likely slow in 2019, but we still forecast an approximately 5 percent rise in overall transaction volumes.”

Hot countries

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Ballooning unsold inventory casts shadow on Thai Property Market

A total of 454,814 residential units across the country were left unsold last year, with a total value of US$ 41 billion, according to Sopon Pornchokchai, president of the Agency for Real Estate Affairs.

The supplies in the Bangkok Metropolitan Region constituted 40% of the total units available and 55% of the total value.

These supplies included detached houses, semi-detached hoses, townhouses, shophouses, condominiums (owner-occupied apartments) and residential land subdivision catered by formal private housing developers in Thailand.

In 2018, 448 housing projects were launched with a total number of units of 126,167 units with a total value of USD 17,267 billion in the Bangkok Metropolitan Region. This is consider a boom indeed.

Dr.Sopon Pornchokchai, President, the Agency for Real Estate Affairs Bangkok has the largest unsold supply

The largest unsold inventory were in Bangkok with a total number of units of …

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Scaling up in Asia Pacific’s logistics sector

Platform and entity level deals, capital partnering and joint ventures, and portfolio transactions are becoming increasingly common in Asia Pacific’s logistics sector.

The reasons why are simple – logistics sector fundamentals are strong, future growth prospects are positive, and accessing and getting scale in many markets across Asia Pacific are relatively difficult.

Investment sentiment in Asia Pacific is positive

Industrial transaction volumes in the first three quarters of 2018 (~USD 19.2 billion) are 29% higher than in the same 2017 period (~USD14.9 billion)[1]. Portfolio deals comprised an increasing number of these transactions.

In the first three quarters of 2017, there were an estimated 26 industrial sector portfolio deals[2]. This rose to an estimated 33 portfolio deals over the same period in 2018. Finalisation of Mapletree Logistics Trust’s acquisition of CWT International’s five Singa…

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Key trends behind the growth in Asia-Pacific’s industrial and logistics market

Over the past five years, global investment into industrial and logistics property has doubled, reaching a total of US$126 billion in 2017.

A sector traditionally prized for its stable income has recently seen dynamic capital growth, and logistics facilities now attract lower yields than retail property in some markets.

This evolution has been driven by exceptionally broad investor appetite for the sector, ranging from private equity vehicles and institutional funds to private individuals and families. Platform and portfolio transactions have become increasingly common among larger investors as they seek large-scale assets.

In Western markets, the rise in online shopping is one of the key drivers stimulating this apparently insatiable appetite, as retailer demand for modern distribution facilities continues to grow.

In Europe, rental growth forecasts for the sector are healthy, as stock is scarce and demand high. Asia-Pacific m…

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Chinese investors spent $2.3 bln in Thai property in 2018

Chinese investors have continued pouring their money into Thailand’s property sector even as the kingdom barrels toward an uncertain national election.

Thailand was the fourth-most-popular country for Chinese property investment in 2018, according to Juwai. With $2.3 billion coming in from Chinese sources, the Southeast Asian nation ranked behind only the U.S. ($30 billion), Hong Kong ($16 billion) and Australia ($14 billion.)

According to recent data from online Chinese real estate portal Juwai.com, Thailand was its most popular country when it comes to inquiries from potential real estate buyers in 2018 — climbing up from the sixth spot in 2016.

The impact of Thailand’s elections on its market and economy from CNBC.

That underscores the Southeast Asian nation’s enduring popularity with the Chinese — tourists from Asia’s top economy have for years seen Thailand as a top spot for holiday…

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Thailand’s real estate outlook for 2019 brings new level of uncertainty

Higher interest rates, mortgage curbs and the unknown effects of the general election are among the risk factors for the local market, says CBRE

Danish physicist and Nobel laureate Niels Bohr famously quipped that “prediction is very difficult, especially if it’s about the future”. 

However this year will bring significant changes in the Bangkok property market, slower growth in many sectors and an incoming wave of new supply, according to CBRE, the international property consultancy.

The race for increasingly rare sites is still hot with the increase in land prices and scarcity of freehold land in prime locations.

However, with new regulations on the horizon and a new Bangkok City Plan scheduled to take effect in 2020, developers are taking a step back to assess the situation.

New regulations and uncertainties

 The real estate market will face a series of challenges, including a higher policy interest rate, tighter mortg…

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How mass transit reshapes Bangkok’s property market

Developers and buyers all want to know the impact on the property market of the 197-kilometre mass transit lines under construction in Bangkok.

These new infrastructure developments, in addition to the 110km of existing mass transit lines, will improve access to and from inner city areas and link midtown areas.

This will affect the property market, especially the residential market. The popularity of each line can be seen from its ridership, as well as the number and prices of residential units along the line. These factors show not all lines are equal.

Currently, the BTS Light Green Line, with 750,000 passengers per day, has seen the most developments of residential, office, retail, and hotel properties.

It is followed by the MRT Blue Line, with 350,000 passengers per day, where developments have been concentrated along Ratchadaphisek road.

For the MRT Purple Line, many condominiums were launched during its construction with high expectat…

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How Blockchain technology can impact Real Estate Investment

The infiltration of blockchain, the technology that supports cryptocurrencies like Bitcoin, into industries around the world is only a matter of time.

The historically traditional commercial real estate industry won’t easily escape. In its simplest form, blockchain is a distributed database.

By recording and combining transactions into a de-centralized, secure ledger system, it creates a “chain” of chronological data that no one party has control of.

The value lies in the system’s ability to authenticate and track transactions in real time without the use of a third party, such as a bank. The technology has the potential to transform the property business. The potential shake-up would significantly speed up transactions and increase transparency.

“People are brainstorming new ways of using it so that they fall on the right side of this business disruption,” according to the DBRS research report How Blockchain Technology Is Rebuilding the Commerci…

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