Bangkok records USD38.6m worth of property transactions in Q3

This was from four real estate deals.

Four real estate transactions with a total value of USD38.6 million were completed in Bangkok in the third quarter of 2022. 

Of the four transactions, Colliers says one was a joint venture between Tokyo Tatemono and Asset Wise Corporation, while the remaining three were asset sales completed by domestic buyers. 

Here’s more from Colliers:

The Bangkok office market is on the verge of oversupply, as approximately 1.2 million sq m of office spaces are under construction and set to launch over the next three years. 

As interest rates rise and the US dollar continues to gain against the Thai baht, value-add opportunities in Bangkok are becoming more attractive to foreign investors. Colliers expects that investment sentiment will pick up during Q4 and that overseas investors will become more active and increase their equity positions. 

From a macro perspective, inflation, driven by high energy prices, remains a key risk to Thailand’s economic recovery due to its direct impact on domestic consumption. 

Expert view 

Colliers expects investment sentiment will pick up in Q4 as investors expect higher cap rates to offset increasing development and operating costs.