Income-producing properties are still in demand in Thailand as seen from major hotel and land purchases in the second quarter, says the property consultancy firm CB Richard Ellis (CBRE).
The Sofitel Silomwas sold to an associate of The Pioneer Global Group. The same associate, with a 49.5% stake in the Pullman Pattaya Aisawan Resort, purchased the 469-room hotel for 2.01 billion baht, or 4.3 million baht per key.
Eilidh Callum, senior economist of CBRE Thailand, said in addition to income-producing assets, strategically located sites are also in demand. So far this year, City Virtue Limited purchased a three-rai site on Sathorn Road from the French Government while developers L.P.N. and Supalai have both purchasedfor residential developments.
A new entrant, Boon Rawd Brewery Co – the company behind Singha – purchased the nine-rai former Japanese Embassy site on New Phetchaburi Road for 2 billion baht, which it intends to develop into a mixed use development.
Commercial real estate sales in Asia-Pacific totalled US$9 billion in the second quarter, a decline of 39% from the first quarter as investors in Asia turned more cautious following the March 11 earthquake and tsunami in Japan and the worsening economic picture in the United States and euro zone.
The state of uncertainty in the global economy encouraged investors to drift towards conservative plays with the period witnessing a renewed focus on core quality buildings in established markets. Australia registered the greatest transaction volume across the region in the second quarter, accounting for 24% of total investment in Asia-Pacific.
To download a full report of CBRE’s Global Capital MarketView, please click here.
Read more from the original source:
Desire for Key Land Remains
Is There a Silver lining amid COVID-19?
Thinking of the future impact of this pandemic on office buildings, it may have already dawned on many of us that a majority of potential long-term trends and health measures will become permanent work-life features in the times to come.
The time is ripe to embrace Industry 4.0
Traditional brick-and-mortar retail has suffered tremendously, as countries have been implementing effective stay-at-home and social distancing policies to mitigate virus spread, while those worst hit have enacted strict draconian lockdowns
We have entered a time where, seemingly, interconnectedness is the new enemy, staying in is the new going out, and antisocial is the new social. COVID-19 has brought us on the cusp of growing accustomed to new norms and sounded a wake-up call in terms of how we live.
Covid-19 puts flexible space markets under strain
In the wake of operator defaults, landlords will be forced to re-evaluate the role of flexible space in their portfolios.
The global Covid-19 outbreak has had serious negative effects on commercial real estate, including flexible space. Of late, many operators have experienced the flexible nature of the business working against them, as many occupiers have opted to surrender desks and implement work-from-home plans.
Subscribe via Email
Thai fruit exports to FTA markets up 107 percent
China, Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, Australia and Chile are top importers of Thai fruits, especially fresh durian,...
Digital Revolution and Repression in Myanmar and Thailand
Activists have also proactively published social media content in multiple languages using the hashtags #WhatsHappeningInMyanmar and #WhatsHappeningInThailand to boost coverage...
3 Reasons to Be Optimistic About the Baht Right Now
Probably one of the most important factors for the rise of the Baht is the continued weakness of the US...
Will Thailand’s plan for quarantine-free tourism set a global trend?
According to the Tourism Authority of Thailand, the quarantine-exemption measures implemented in Phuket will be extended to five other key...
Thailand Approves Latest Economic Relief Package for Businesses
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will...
Southeast Asia remains a hot spot for plastic pollution
The use of plastics is deeply embedded in our daily lives, in everything from grocery bags and cutlery to water...