U.S.-China tensions to boost demand for office and industrial real estate in Southeast Asia – Thailand Business News

The ongoing tensions between the United States and China have prompted a strategic reconsideration of supply chains and investment locations. As tariffs and trade barriers are imposed, multinational corporations are seeking to establish their operations in locations beyond the traditional powerhouses.

Key Points

• Frasers Property, led by Thailand’s wealthiest person, aims to tackle oversupply of office space in the capital, leveraging U.S.-China tensions.
• The developer anticipates increased demand for offices and industrial real estate in Southeast Asia, particularly with its significant ‘One Bangkok’ project.
• The potential influx of foreign direct investment into Southeast Asia could transform the urban landscape. Industrial parks, logistics hubs, and modern office spaces may see increased demand, driving up property values and spurring development.

Frasers Property, a prominent real estate developer controlled by Thailand’s wealthiest individual, is strategically positioning itself to leverage increasing U.S.-China geopolitical tensions to address the surplus of office space in the capital of Thailand. This oversupply, a legacy of previous economic shifts and changes in corporate real estate needs, presents a significant challenge. The company is optimistic that these international tensions will catalyze a renewed demand for commercial and industrial real estate, particularly in Southeast Asia, as companies reassess their operational strategies in response to the evolving trade landscape.

Chief Executive Officer Panote Sirivadhanabhakdi has highlighted Frasers Property’s ambitious plans, focusing on the flagship ‘One Bangkok’ project, which is valued at an impressive 120 billion baht (approximately $3.6 billion) and is centrally located in Bangkok. This project’s significance is underscored by its potential to act as a catalyst for revitalizing the office market by attracting both local and foreign businesses looking for modern, well-located office environments. Sirivadhanabhakdi is confident that this surge in demand will not only address the current oversupply but will also enhance the overall viability of office spaces in the region.