2025-02-10-莱坊-Thailand_Logistics_Property_Market_1H_2024_7页_1mb

Logistics Market Summary - H1 2024

Core Content Overview

This report provides an overview of the logistics market in Thailand for the first half of 2024, highlighting key economic indicators, supply and demand dynamics, occupancy rates, and rental trends. It also outlines the future supply pipeline and the outlook for the sector.

Economic Context

• GDP Growth: Thailand's GDP grew by 1.9% in H1 2024, recovering from a 1.6% contraction in Q1 2024.
• Private Consumption: Increased by 4.0% in Q2 2024, driven by higher spending on semi-durable goods.
• Government Spending: Rose by 0.3%, mainly due to increased employee compensation and social transfers.
• Investment Trends: Total investment contracted by 6.2%, with private investment falling by 6.8% and public investment decreasing by 4.3%.
• Exports and Imports: Exports increased by 4.5% Q-o-Q, with a 2.7% rise in export value and 1.7% increase in export prices. Imports grew by 1.2% despite a decline in volume.

Logistics Property Market Indicators

Supply Growth

• Total Supply Increase: Rose by 8.9% H-o-H and 16.2% Y-o-Y.
• New Supply Contribution: Accounted for 9% of the total supply added in H1 2024.
• Key Locations: New supply was concentrated in Chonburi, Samutprakarn, and Pathumthani, with Samutprakarn holding 41% of the total area.
• Supply Distribution:
  • Bangkok Metropolitan Region (BMR): 2.8 million sq m, 45% of total supply, up 9.9% H-o-H.
  • Eastern Economic Corridor (EEC): 2.4 million sq m, 38% of total supply.
  • Central Region: 1.04 million sq m, 16% of total supply.

Future Supply

• Future Letable Area: Approximately 239,000 sq m, with 115,000 sq m expected in H2 2024 and 124,000 sq m from 2025 onwards.
• Regional Distribution:
  • Eastern Seaboard: 59% of future supply.
  • Bangkok Metropolitan Region: 41% of future supply.

Demand and Net Absorption

• Net Absorption in H1 2024: Reached 458,224 sq m, the highest in recent years.
• Key Drivers: E-commerce, automotive, and electronics sectors.
• Regional Performance:
  • BMR: Net absorption of 222,452 sq m, with 89.6% occupancy.
  • EEC: Net absorption of 191,909 sq m, with 78.8% occupancy.
  • Central: Net absorption of 47,141 sq m, with 86.9% occupancy.

Occupancy Rate Trends

• Overall Occupancy: 85.0%, up 0.4% H-o-H but down 3.1% Y-o-Y.
• Regional Changes:
  • BMR: Occupancy dropped 0.2% H-o-H and 2.5% Y-o-Y.
  • EEC: Occupancy increased 1.4% H-o-H but fell 4.6% Y-o-Y.
  • Central: Occupancy decreased 0.2% H-o-H but increased 0.6% Y-o-Y.

Rental Rates

• Average Asking Rent: Remained stable at 158 Baht/sqm/month.
• Regional Variations:
  • BMR: Average 161 Baht/sqm, with premium properties reaching 230 Baht/sqm.
  • EEC: Average 159 Baht/sqm.
  • Central: Average 150 Baht/sqm.
  • Other Regions: Average 124 Baht/sqm, with the minimum rent increasing from 100 Baht to 110 Baht and the maximum rent in BMR rising from 200 Baht to 230 Baht.

Transportation Trends

• Sea Transportation: Dominates 64.6% of total trade, despite a 3.3% Y-o-Y decline.
• Air Transportation: Grew by 15.9% Y-o-Y, supporting high-value sectors like electronics and medical devices.
• Road Transportation: Increased by 13.0% Y-o-Y, driven by cross-border trade with China and Malaysia.
• Rail Transportation: Rose sharply by 51.3% Y-o-Y, indicating potential for efficiency in goods movement, especially in the EEC.

Outlook

• The logistics property market in Thailand is expected to remain competitive in H2 2024.
• Sectors to Watch: E-commerce, automotive, and electronics will continue to drive demand.
• Warehouse Automation: Increasing adoption is expected, along with flexible space solutions.
• Developer Strategy: Focus on market absorption rates to avoid extended vacancies.

Key Stakeholders

• China, Netherlands, South Korea, Japan, and Hong Kong: Showed strong investment confidence, bringing in technology and innovation to the logistics sector.

Conclusion

Thailand's logistics market has shown resilience and growth in H1 2024, with robust supply growth and strong demand from key sectors. While occupancy rates declined slightly, this reflects the market's ability to absorb new supply effectively. The Eastern Seaboard and Bangkok Metropolitan Region remain central to future developments, and the sector is poised for continued expansion in the coming months.