Indonesia has been ranked as the most efficient and transparent emerging real estate market in the Asia-Pacific region, and the fifth most efficient and transparent emerging real estate market in the world.
Following Indonesia is Thailand which placed 11th overall and second in the region courtesy of impressive scoring within a number of operating conditions parameters.
The Philippines is third within Asia-Pacific and 14thoverall, and scores well in a number of the property related parameters with bureaucracy levels making business relatively easy to undertake.
The findings come in Cushman & Wakefield’s second edition of its comprehensive white paper titled Emerging and Frontier Markets: Assessing Risk and Opportunity that evaluates four key risks and ranks 42 countries using a weighted index to determine which markets provide the best opportunity for global expansion.
Bangkok’s office market remains landlord favourable with the highest rental rents centralised in the city, according to the report. Rental rates have continually increased due to strong demand and limited supply.
Thanks to the easy access and extension of the BTS and MRT lines-as most of Bangkok’s office buildings are connected to the stations-daily commute is not affected, hence occupancy rates and rental rates continue to increase. Moreover, with the ASEAN Economic Community coming into effect in 2015, developers have been refreshing their current and future projects to attract tenants.
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Expressing its outlook for Thailand, the report noted that Thailand’s political issues have resurfaced since the fourth quarter of 2013, even though they have not materially impacted the market. If the situation is not resolved quickly, it may cause new space-occupying decisions to delay during the year.
Conversely, the report said, if the political dispute is resolved, the office market in Bangkok will unquestionably grow in a swift pace due to the various advantages stated earlier. It is expected that approximately 300,000 sqm of office space in non-central business district areas and approximately 44,500 sqm of office space in the central business district will be added in 2014-2015, offering occupiers more choice.
“Emerging and frontier markets present some of the most significant opportunities for occupiers and investors,” said John Santora, President and Chief Executive Officer of Cushman & Wakefield Corporate Occupier & Investor Services.
”The coming months will bring challenges, but the growth opportunities in most markets should outweigh therisks.”
Read the full Cushman and Wakefield report here:
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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If you have a news story or comment for publication about Thailand property or real estate email: andrew@propertyguru.com.s