Global industrial and logistics transactions are on a rebound, plus more reports

For PropertyGuru’s real estate news roundup, industrial and logistics deals are up globally, even higher than pre-pandemic averages. In other bulletins, Pres. Marcos’ State of the Nation Address highlights the government’s plans for real estate. Lastly, the land prices in Bangkok’s inner-city locations increased in the first and second quarters of 2024.

Global industrial and logistics transactions rebounding higher post-Covid – Savills

Savills notes that USD78 billion of industrial and logistics deals were completed globally in H1, representing over 9 percent growth from the 2015-19 average. While down by 16 percent compared to H1 2023, the transactional market is tracking higher than pre-COVID-19, with USD41.5 billion raised globally in H1 2024 by funds specifically targeting industrial and logistics assets. This represents a 30 percent increase on the pre-COVID-19 average, despite the wider challenges around raising capital.

According to a RETalk Asia report, the Q2 average individual industrial deal rose by around 11 percent in size compared to Q1, suggesting that scale investors are returning. This is supported by a recovery in buy-side activity from cross-border investors, the only major investor group to be net buyers of industrial and logistics space in 2024.

Across the Asia Pacific, Q2’s total investment of USD8 billion was down 34 percent on the year. Like in the other regions, a large decline in portfolio deals underpinned weaker turnover. The half-year comparison is stronger: total investment was down just 11 percent on H1 2023, underpinned by a solid start to 2024. Australia and South Korea are the best-performing major regional markets, while Singapore is broadly stable.

President Marcos’ 3rd SONA: What’s in it for Philippine property

President Ferdinand R. Marcos, Jr.’s third State of the Nation Address (SONA) highlighted crucial issues that will have a direct or peripheral impact on Philippine property. From the improvement of the country’s infrastructure network to the upskilling of potential workforce, Colliers believes that these pro-business reforms will play a pivotal role in resuscitating Philippine property post-pandemic.

BusinessWorld reports that while challenges remain, including business registration bottlenecks, President Marcos’ last SONA infuses much-needed optimism, particularly in stoking the property segment, which is being positioned as one of the key job and livelihood-generating sectors of the Philippine economy.

Tourism was also highlighted, which has great potential to employ Filipinos living in the countryside.

What’s encouraging is that the president also addressed the country’s costly electricity and measures that can be implemented to plug power shortages. This should play a key role in rekindling the Philippines’ manufacturing competitiveness, enabling the country to attract much-needed foreign direct investments.

Bangkok’s inner-city land prices increase in the first half

The rise in land prices in Bangkok’s inner-city locations was among the top five largest increases in the first and second quarters of 2024, reflecting the trend of higher volumes of new condo supply launched in these areas.

Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said land transactions in Bangkok’s inner-city areas typically involved smaller plots, yet commanded high prices. “Land prices in Bangkok’s inner-city locations have been continuously increasing, which might be attributed to large-scale development projects by both the government and the private sector,” he said in Bangkok Post.

These developments often include mixed-use projects featuring office buildings, retail spaces and high-rise residential towers.

Many of these projects were developed as condos, aligning with REIC’s residential market data for the first quarter of 2024, which showed a surge of 269 percent year-on-year in new condo launches in Bangkok’s inner-city areas.

The Property Report editors wrote this article. For more information, email: [email protected].