2018 ASIA PACIFIC REAL ESTATE MARKET OUTLOOK | BANGKOK 2 CBRE RESEARCH 2018CBRE, Inc. 06 ECONOMIC OUTLOOK TABLE OF CONTENT 16 RETAIL SECTOR 25 OFFICE SECTOR 04 EXECUTIVE SUMMARY 22 CAPITAL MARKETS 19 INDUSTRIAL &LOGISTICS SECTOR 25 RISKS & OPPORTUNITIES 12 OFFICE SECTOR08 RESIDENTIAL SECTOR2018 ASIA PACIFIC REAL ESTATE MARKET OUTLOOK | BANGKOK 4 CBRE RESEARCH 2018CBRE, Inc. The new year has started with a mood ofoptimism for the Thai economy lifted by anupbeat global outlook. Developers are competing fiercely for primedevelopment sites, driving up prices to recordlevels and both condominium prices and officerents are at record highs. EXPORTS AND TOURISM: MAINCONTRIBUTION TO THAI ECONOMY The Thai economy is picking up with growth inexports and tourism. Thailand finished lastyear with 3.9% Y-o-Y gross domestic product(GDP) growth, resulting from a significantincrease of 9.9% in exports to all majormarkets.The tourism sector, accounting for 20% of thecountry’s GDP, saw a record 35.4millionarrivals in 2017 with further growth predictedfor 2018.LOCAL DEVELOPERS FORM JOINTVENTURES WITH FOREIGNPARTNERS Thai banks are being conservative about newproject lending to developers and so Thaidevelopers are seeking funding from foreignpartners. Most joint ventures to date have beenwith Japanese investors on a project-by-projectbasis for condominiums.CBRE is now also seeing investors from othercountries such as Hong Kong, Singapore andChina. Although earlier joint ventures startedwith condominium development, we expectnew investment in both condominium andincome producing properties.EXECUTIVE SUMMARY DEMAND CONTINUES FOR PRIMESITES Demand for prime sites has remained strongwith developers continuing to acquire sitesboth for condominium and rental incomeproducing office, hotel and retaildevelopments.Central business district (CBD) land prices willcontinue to increase in the most primelocations near mass transit stations. We have already seen the biggest land sale inThai history with the acquisition of the BritishEmbassy site by the CPN/Hongkong Land jointventure and a record price paid for adevelopment site on SoiLangsuanby SC Asset. Developers are starting to diversify withresidential condominium developers looking atmoving into income producing office, retailand hotel properties. The scarcity of prime, CBD freehold sites willdrive prices up. STEADY DEMAND FOR OFFICES BUTTENANTS START TO LOOK ATALTERNATIVE WORKPLACESOLUTIONSCBRE expects steady office demand of 200,000sq.m. per year for the next few years, but doesnot expect a sudden jump in demand, so newsupply of less than 200,000 sq.m. in 2018 willmean that vacancy will remain low and rentswill continue to rise, but at a slower rate.。。。。。。