Thu Sep 19 06:24:00 UTC 2024: ## US-China Trade War Fuels Hope for Thailand’s Oversupplied Office Market
**Bangkok, Thailand** – Frasers Property, controlled by Thailand’s richest man, is betting on escalating US-China tensions to alleviate the country’s office oversupply. The Singapore-based developer anticipates a surge in demand for office and industrial real estate in Southeast Asia, especially for its massive 120 billion baht (US$3.6 billion) “One Bangkok” project in the city center.
CEO Panote Sirivadhanabhakdi believes foreign direct investment will also boost demand for warehouses and industrial properties in Vietnam and Thailand, two key growth markets for Frasers. He cites the influx of global trade and investment spurred by the deteriorating US-China trade relations.
“Southeast Asia will be our main growth driver,” he said, noting the region’s government efforts to attract foreign investors.
Despite Mr. Sirivadhanabhakdi’s optimism, Thailand has yet to significantly benefit from companies relocating from China. The country faces a significant glut of office and industrial space. Vacancy rates for premium office spaces in Bangkok’s central business district reached 26.3% in the second quarter, while ready-built warehouse vacancies exceeded 21%.
Frasers Property, however, remains confident in its “One Bangkok” project, with one of the office buildings already partially occupied. The full opening is scheduled for October 6th, featuring three office buildings and two retail zones.
The company, like other real estate firms in the region, has faced pressure from high interest rates and a global property downturn. However, the potential boost from the US-China trade tensions could offer a much-needed lifeline for the Thai real estate market.
First Piper 