After falling for two consecutive quarters, real estate investment in Malaysia, Singapore and Thailand grew 9.3% quarter-on-quarter (q-o-q) to USD4.8bn in Q2. This brought investment volume for H1 2014 to USD9.2bn, which was approximately 15% lower than the USD10.8bn invested in H1 2013. Investment activity in Q2 was boosted by a surge in activity in Thailand, driven largely by the disposal of income-generating assets into property funds, despite the prolonged political tensions.
Investment in office, residential and hotel properties led activity, accounting for close to 80% of total volume in Q2. While there were office deals in all three South East Asian countries, residential investments comprised the sale of government land sites in Singapore. There were only two reported hotel deals, both of which were in Thailand.
Source : DTZ (Groupe UGL)