Today, InvestMan has interesting news to present to our readers on the economic situation of the country. There is no further need to discuss the worsening Covid situation around the world, including in Thailand and how it has caused a negative impact on the economy of the country as well as the living condition of people who have to change their daily lives, such as working from home. Many businesses were forced to shut down after struggling to survive the crisis especially, in the tourism industry, etc.
With all that being said, the reader would be surprised to learn that the total amount of commercial/office space and property transactions across Asia-Pacific has increased, in relative to the declining economic trend ever since the beginning of the COVID-19 outbreak. Bangkokbiz has recently revealed the analysis of the real estate market by JLL Company. All transactions that occurred in the first half of 2021 have accumulated over 2.7 trillion baht, which is 39% increased compared to the amount incurred in the same period last year.
This trend displays how the real estate market adapts to the New Normal era. One of the main reasons for this rise is the expansion of e-commerce and logistics businesses, which InvestMan had discussed in the previous article. This has caused surging investment and development of property such as warehouses and distribution centers to meet the growing demand as e-commerce businesses are prospering from changing consumer behavior in regards to online shopping as a result of COVID. This trend is also evident in neighboring countries such as Singapore.
According to JLL, the value of building has also increased in Thailand where logistic purpose property remains highly sought after by developers and investors. The total turnover occurred in the first half of this year, totaling 6.7 billion baht, and it is estimated that the number will likely to grow further in the second half of the year.
This is a very encouraging sign which reassures the confidence of investors who are looking to invest in commercial space. However, investment or development in any real estate type requires deep analytical study of the project such as project feasibility study and site selection analysis to identify the suitability for the development objectives. Prospec Appraisal as an appraisal company, is more than welcome to provide our customers with these services.
Credit source : Bangkokbiznews