Over the years investment into industrial and logistics property has been massive, not only in Thailand but globally. Appreciated for its stable income, this sector has recently seen dynamic capital growth. Logistics facilities now attract lower yields than the retail in some markets. This is possible by broad investor appetite for the industry, from institutional funds, private individuals and families to private equity vehicles.
However, in the Western markets, a rise in e-commerce or online shopping is one of the main drivers that stimulate the investors’ appetite. In Europe, the rental growth forecasts for the sector are quite healthy. The Asia-Pacific markets have similar characteristics too.
Over 30 years, China’s growth has been hugely based on its status as the world’s workshop. Currently, “Made in China 2025” project represents a concerted effort to push the country up the value chain while the ultimate focus being to compete in the manufacturing innovative technologies.
Besides, modern logistics facilities, as well as high-tech business parks, are witnessing more number of investments to promote existing sites while regenerating older sites.
Coming to South-East Asia, here the e-commerce market still didn’t have much impact as it should. How? Well, strong shopping mall culture and lack of easy online payment are the proofs. But, then having Alibaba and Tencent investing in the region and bringing in cross-border payment solutions now there’s significant growth.
