PROPERTY investment sentiment varied across Asean in the third quarter, from healthy appetites in the Philippines, Vietnam, and Singapore, to subdued demand in Thailand and Indonesia, according to CBRE's Asia Pacific Investment Trends Q3 report, released Nov 14.
The 13 markets covered in the report include five Asean countries: the Philippines, Vietnam, Thailand, Indonesia, and Singapore.
"Domestic investors retained a healthy appetite for land acquisition and are still commencing work on new development projects," said the report. Led by large congolomerates, local investors continued to account for the bulk of activity in Q3.
Investors and developers are ready to capitalise on new transport infrastructure now being built in Metro Manila, including Subway Line 9, a monorail, and the New Manila National Airport.
Market sentiment stayed positive despite tighter lending conditions, with local investors still keen on acquisitions.
The tight lending environment has prompted local developers to become more open to joint ventures with foreign investors. There are also ample debt investment opportunities for foreign investors willing to provide development financing.
Weaker economic growth weighed on investment sentiment, with retail investment currently unattractive due to weak domestic consumption demand and changing consumer behaviour.
The Bangkok office market is set to become more challenging with a large volume of upcoming supply.
Market sentiment was subdued amid weakening economic growth and a slowing residential market. Strong e-commerce growth has hurt consumer demand for malls and department stores.
Foreign investors have focused on industrial property. Logistics is a popular sector, with high-spec warehouses of particular interest.
Investment activity stayed robust, supported by major office sales. Interest in the hotel sector is rising alongside growth in visitor arrivals, with mid-range hotels especially benefiting.
There has also been "growing interest from new-to-market investors based in Hong Kong drawn to Singapore's stability"