ASEAN Office Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 9.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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ASEAN Office Real Estate Market Analysis
The size of the ASEAN Office Real Estate Market is USD 33.17 billion in the current year and is anticipated to register a CAGR of over 9% during the forecast period. The region's rise in start-ups and the increasing demand for co-working spaces drive the market.
- The COVID-19 outbreak caused business closures, reducing the conventional office space market. In addition to its immediate effects, the pandemic affected the prospects for office real estate since traditional offices were less in demand as work-from-home policies gained popularity. The effects of the epidemic also show a rise in pricing misalignments. As the economy picks up speed, the misalignment is probably going to get smaller. However, due to shifting cultural tastes, the industry may face structural challenges in the office real estate market.
- In order to create a hybrid workplace model, occupiers are likely to concentrate more on merging traditional leased spaces, remote working possibilities, and flexible spaces within real estate portfolios. The plan to decentralize the workplace and provide more locations to satisfy the demands of a more mobile workforce is anticipated to have cost and portfolio optimization as its objectives. According to industry experts, more office space will be needed in the Asia Pacific over the next 10 years than in the preceding ten, notwithstanding the challenge posed by work-from-home arrangements.
- In the Asia Pacific region, it is anticipated that 1.35 billion square feet of office space will be needed over the course of the next ten years, a 66% increase over the 800 million square feet absorbed by corporate occupiers during the previous ten years. In APAC, 55% of office construction work is already in progress. It is estimated that between now and the end of 2024, 120 million square feet of office space will be constructed annually on average.
ASEAN Office Real Estate Market Trends
This section covers the major market trends shaping the ASEAN Office Real Estate Market according to our research experts:
Demand for Co-Working Spaces Driving the Market
- Co-working and flexible spaces are valuable resources for businesses operating in Asia. The demand for flexible office spaces is increasing more quickly in ASEAN countries than anywhere else in the world, according to data from industry experts. In just three years, the number of major flexible space operators has doubled, and flexible floor space has expanded by 150%.
- Many jobs no longer require employees to work in conventional offices as a result of the growth in digital connectivity. A global market reach is also something that companies need more and more, but they don't want to pay for many offices. This led to the development of the co-working phenomenon, which involves independent professionals-such as freelancers and project-based workers-working together in a shared workspace. Companies that support flexible work schedules have started putting their remote workers in these settings.
- With the decentralization of the office, businesses now have access to an endless talent pool. Employing borderless hiring allows businesses to find the best personnel and place them in the coworking spaces that are closest to them. Companies in Malaysia, Indonesia, and Singapore that currently deal with a growing talent scarcity and a skills mismatch stand to benefit greatly from talent becoming the new oil. Increased variety results from utilizing a larger talent pool since stay-at-home parents, people with disabilities, the elderly, and students may all offer their expert skill sets to the economy.
Rise in Start-ups Driving the Market
- Local venture capitalists are actively looking for new growth areas while the U.S. market is growing more costly and its prices are becoming less and less correlated to fundamentals. Many people are keeping an eye on the nations of Southeast Asia. With a concentration on Vietnam, Thailand, Indonesia, Malaysia, Singapore, and the Philippines, this is a broad but very powerful prospective market.
- Over the past few years, the region's digital and tech businesses have experienced a tremendous boom. Jungle Ventures estimates that the aggregate valuation of Southeast Asia's technology startups was USD 340 billion in 2020 and that it will triple by 2025. Although each of the nations is at a distinct stage of development, they all provide a wide range of prospects for the establishment of cutting-edge technologies and tried-and-true business models.
- A strong foundation for innovation is giving new startup innovations a big boost. The growth of new digital businesses is encouraged by governmental policies, which is another component that plays a role in this. Under the Thailand 4.0 program, Thailand provides tech companies with one such program that includes visa and tax advantages. Grab, the "Uber-killer" of Southeast Asia launched in 2012, has provided financial services, food delivery, rides, and hotel reservations. It forced Uber to leave South East Asia in 2018. Currently it is the most valued Southeast Asian unicorn in the IT sector, went public in New York in 2021 after a record-breaking USD 39.6 billion merger.
- Shopee, a global technology corporation with its headquarters in Singapore. The site first functioned as a marketplace connecting consumers. The platform had 200 million downloads as of 2019. With 343 million monthly visits as of 2021, it is regarded as Southeast Asia's largest e-commerce platform. In addition to these, there are other firms that are developing in the area, receiving funding and succeeding. According to Cento Ventures, venture capitalists invested in 393 businesses in Southeast Asia in the first six months of 2021.
ASEAN Office Real Estate Industry Overview
The ASEAN office real estate market is relatively fragmented with developers and property consultancy firms. The market is anticipated to regain normalcy by 2023. Companies are gearing up to meet future needs, and many companies are entering the market for further opportunities. Some office real estate companies are UOL Group Limited, City Developments Limited, Frasers Property, etc.
ASEAN Office Real Estate Market Leaders
UOL Group Limited
City Developments Limited
Frasers Property
PRIME Philippines
Savills Vietnam
*Disclaimer: Major Players sorted in no particular order
ASEAN Office Real Estate Market News
- September 2022 - Ciputra International (a real estate company), inaugurated the Propan Tower. This project has 17 floors and is spread across 7.4 hectares, consisting of 10 buildings, 6 offices, 3 apartments, and 1 hotel. The project was developed to meet the increasing demand for office space in Jakarta.
- February 2022 - Hulic (a real estate company) signed a Purchase Agreement with Japan Excellent (a real estate investment trust that mainly invests in office buildings in Tokyo) to buy Trust Beneficiary Rights in Shintomicho Building for JPY 3.1 billion (USD 25.4 million). The Trust Beneficiary Rights in the Shintomicho Building will be transferred in two parts, with the first phase being the transfer of 40% ownership for JPY 1,24 billion (USD 10.1 million) and the second phase involving the transfer of the remaining 60% ownership for JPY 1.86 billion (USD 15.3 million).
ASEAN Office Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Background
1.2 Study Assumption and Market Definition
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS & DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.2 Market Restraints
4.2.3 Opportunities
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.4 Industry Value Chain Analysis
4.5 Technological Innovations in the Office Real Estate Market
4.6 Government Regulations and Initiatives in the Industry
4.7 Insights into Rental Yields in the Office Real Estate Segment
4.8 Insights into the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))
4.9 Insights into Office Real Estate Construction Costs
4.10 Insights into Office Real Estate Investment
4.11 Impact of the COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Geography
5.1.1 Singapore
5.1.2 Thailand
5.1.3 Vietnam
5.1.4 Indonesia
5.1.5 Malaysia
5.1.6 Philippines
5.1.7 Rest of ASEAN
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles - Real estate Players
6.2.1 Savills Vietnam
6.2.2 CBRE Vietnam
6.2.3 Hines
6.2.4 IM Global Property Consultants Sdn Bhd.
6.2.5 PRIME Philippines
6.2.6 Leechiu Property Consultants*
6.3 Company Profiles - Developers
6.3.1 UOL Group Limited
6.3.2 City Developments Limited
6.3.3 Frasers Property
6.3.4 PT Ciputra Development Tbk
6.3.5 Malton Berhad*
7. FUTURE OF THE MARKET
8. APPENDIX
ASEAN Office Real Estate Industry Segmentation
Office real estate is the construction of buildings for leasing and selling purposes to companies from different sectors. A complete background analysis of the ASEAN Office Real Estate Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The ASEAN Office Real Estate Market is Segmented by geography (Singapore, Thailand, Vietnam, Indonesia, Malaysia, Philippines, and the Rest of ASEAN). The report offers market size and forecasts in value (USD billion) for all the above segments.
| By Geography | |
| Singapore | |
| Thailand | |
| Vietnam | |
| Indonesia | |
| Malaysia | |
| Philippines | |
| Rest of ASEAN |
ASEAN Office Real Estate Market Research FAQs
What is the current ASEAN Office Real Estate Market size?
The ASEAN Office Real Estate Market is projected to register a CAGR of greater than 9% during the forecast period (2024-2029)
Who are the key players in ASEAN Office Real Estate Market?
UOL Group Limited, City Developments Limited, Frasers Property, PRIME Philippines and Savills Vietnam are the major companies operating in the ASEAN Office Real Estate Market.
What years does this ASEAN Office Real Estate Market cover?
The report covers the ASEAN Office Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the ASEAN Office Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
ASEAN Office Real Estate Industry Report
Statistics for the 2024 asean office real estate market market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. asean office real estate market analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
