News roundup: Philippines office market demand increased due to government offices, plus other news

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For PropertyGuru’s real estate news roundup, the Philippines office market demand increased this Q1 2024, thanks to the demand for government offices. In more updates, presenting the crème de la crème of Thailand’s condominium developments. And Singapore’s home prices grew at a slower pace last quarter as rents fell.

Philippine gov’t offices lead transactions in Q1 2024 — Leechiu Property

The office market vacancy rate is expected to remain high but is projected to decrease to single digits starting in 2028, Leechiu Property Consultants said in BusinessWorld.

The firm expects vacancies to decrease to 17 percent in 2025 from 19 percent in 2024, then to 14 percent in 2026, 11 percent in 2027, and finally to 6 percent in 2028.

The closest year with a single-digit vacancy rate was 2019, at 6 percent.

“This year, we will start to see pipeline supply drop, but unfortunately, there are still 800,000 sq.m. (square meters) of buildings that will be injected today,” Leechiu Property Director for Commercial Leasing Mikko Barranda said during a media briefing on 15th April.

The firm reported an 18 percent vacancy rate in the first quarter, a slight improvement from 19 percent in the same period last year. It is similar to the 18 percent yearly vacancy rate in 2023.

Meanwhile, total demand surged by 25 percent to 331,000 sq.m. from 264,000 sq.m. in the same period last year, marking the highest uptake since the pandemic. This increase was driven by traditional offices, particularly government agencies, which accounted for 151,000 sq.m. and held a market share of 46 percent.

The demand for government offices, with transactions 1,000 sq.m. and up, logged 36,000 sq.m. with nine recorded transactions.

6 of Thailand’s most coveted condo developments

This burgeoning interest is attributed to a confluence of factors including robust economic growth, attractive low interest rates, and government policies favourable to foreign investment.

Venturing into 2024, the market continues its upward trajectory, with a discernible shift towards high-quality properties featuring added amenities in the middle and elite segments. This evolution mirrors the rising living standards among affluent locals and the active attraction of foreign investors.

In line with global trends, modern buildings in Thailand are increasingly adopting sustainable features like solar panels and energy-efficient lighting systems, making these properties attractive investments for both local and international buyers with a penchant for eco-conscious living.

DDproperty showcases the crème de la crème of Thailand’s condominium developments. From the urban sophistication of The Issara Sathorn in Bangkok (winner, Best Luxury Condo Development [Bangkok] at the PropertyGuru Thailand Property Awards 2023) to the beachfront elegance of SASARA Hua Hin (winner, Best High-End Beachfront Condo Development [Hua Hin] at the PropertyGuru Thailand Property Awards 2023), these developments are not just homes but lifestyle choices, offering a glimpse into the future of luxury living in Thailand.

Singapore home price rises slow, rents fall

Home prices in Singapore grew at a slower pace last quarter and rents fell, as the city-state’s property boom began to lose steam.

Prices for private residences rose 1.4 percent from the previous three months, according to final figures released by the Urban Redevelopment Authority (URA) on 26th April, as reported by Bangkok Post. That compares with a preliminary estimate of 1.5 percent and a 2.8 percent increase in the last quarter of 2023.

Private rents slid 1.9 percent. That comes after a 2.1 percent drop in the previous quarter, the first decline in more than three years.

Home prices have climbed for three straight quarters even as high interest rates and government cooling measures hurt demand, particularly from foreigners looking to buy luxury properties. A slowing economy may weigh on the market in the coming months.

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