2022-05-31-莱坊-Thailand_Logistics_Property_Market_H2_2021_9页_2mb

Thailand Logistics Property Market Summary H2 2021

Core Content

The Thailand logistics property market in the second half of 2021 showed signs of recovery and growth, driven primarily by the e-commerce sector and the modernization of supply chains. The market also exhibited early interest in cold storage and climate-controlled warehousing, which are becoming increasingly important due to healthcare and food industry needs, as well as consumer habits shaped by the pandemic.

Key Statistics

• Total Supply of Ready-Built Warehouses: 4.73 million sq.m., up by 3.5% YoY.
• Total Occupied Space: 4.01 million sq.m., up by 4.8% YoY, with an occupancy rate of 85%, the highest in the past decade.
• Take-Up Rate: Surged to over 186,000 sq.m., the highest since the pre-pandemic period.
• Average Asking Rent: Increased by 0.9% YoY to 159 baht per sq.m. per month.
• Net Absorption Rate: Positive at 144,000 sq.m., a 2.8x growth from the previous half of the year.

Market Trends

• E-Commerce and 3PL Growth: The market is increasingly driven by e-commerce operators and third-party logistics (3PL) companies, reflecting a shift in consumer behavior towards online shopping.
• Cold Chain Demand: Rising demand in cold storage and climate-controlled warehousing is expected to continue, especially in the healthcare and food sectors.
• Supply Distribution: The Bangkok Metropolitan Region holds the largest share (47.1%) of the total supply, with new developments concentrated in Samut Prakan near Suvarnabhumi International Airport. The Eastern Seaboard and Central Region remained relatively stable in terms of supply, with the Central Region showing a slight drop in occupancy YoY.
• Built-to-Suit Warehouses: There's a noticeable shift from speculative ready-built warehouses to built-to-suit premises, which help mitigate vacancy risks and align better with modern logistics needs.

Regional Analysis

Rental Rates

• Average Asking Rent: 159 baht per sq.m. per month, up 0.9% YoY.
• Regional Rents:
  • Bangkok Metropolitan: 161.2 baht per sq.m. per month.
  • Eastern Seaboard: 163.2 baht per sq.m. per month.
  • Central Region: 145.4 baht per sq.m. per month, down 0.5% YoY.
• Rent Spread: Ranges from 100 to 200 baht per sq.m. per month, reflecting the difference between older, less suitable warehouses and modern, automated facilities.

Economic Outlook

• Thai Economy Growth: The economy expanded by 1.9% YoY in Q4 2021, recovering from a 0.2% contraction in Q3. Projected growth for 2022 is 3.5%–4.5%, supported by domestic demand, tourism recovery, and export expansion.
• Export Performance: Q4 2021 exports increased by 21.3%, higher than the 15.7% growth in Q3. The export price index rose by 3.8%, indicating strong demand and recovery.
• Challenges: The Russia-Ukraine conflict has introduced volatility, affecting global energy and food prices, as well as transport and container availability. These factors may disrupt supply chains and increase costs.
• Future Drivers: Expected growth in e-commerce and manufacturing sectors, especially in automotive, agribusiness, chemicals, and electronics, will drive demand for logistics services and warehouse space.

Technological Innovation

• Automation and Smart Warehouses: Developers like WHA and Frasers are investing in automation, robotics, AI, and IoT to create modern smart warehouses that meet international standards.
• Omnichannel Warehousing: These innovations are enabling warehouses to handle orders from multiple channels, including retail shops and e-commerce platforms, similar to more developed markets.
• Rent Spread Widening: As automation becomes more prevalent, the rent spread between modern automated warehouses and traditional ones is expected to widen.

Conclusion

The Thailand logistics property market is showing resilience and growth in H2 2021, with a strong focus on e-commerce, cold storage, and technological advancements. While the market is recovering from pandemic-related disruptions, global geopolitical and economic uncertainties remain potential challenges. The shift towards built-to-suit warehouses and automation is expected to continue shaping the market landscape in 2022 and beyond.