OUTLOOK FOR THE BANGKOK PROPERTY MARKET IN 2015 27 January 2015

RESIDENTIAL TRENDS IN THE BANGKOK METROPOLITAN REGION New Supply of Self-Built Single-Detached Houses in the Bangkok Metropolitan Region, 2003 – Q3 2014

New Supply of Developer-Built Townhouses & Shophouses in the Bangkok Metropolitan Region, 2003 – Q3 2014

Units

Units

30,000

20,000

25,000

15,000

20,000

10,000

15,000 10,000

5,000

5,000

0

0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1- Q1Q3 Q3 2013 2014

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1- Q1Q3 Q3 2013 2014

New Supply of Developer-Built Single-Detached Houses in the Bangkok Metropolitan Region, 2003 – Q3 2014

New Supply of Developer-Built Condominiums in the Bangkok Metropolitan Region, 2003 – Q3 2014

Units

Units

30,000

90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

25,000 20,000 15,000 10,000 5,000 0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1- Q1Q3 Q3 2013 2014

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1- Q1Q3 Q3 2013 2014

2

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

CONDOMINIUM Total Downtown and Midtown Condominium Stock Total Downtown and Midtown Condominium Stock and Newly Completed Condominiums, 1995-2018F No. of Units 700,000 600,000 500,000 400,000 300,000 200,000 100,000

Existing Supply

2018F

2017F

2016F

2015F

2014F

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

0

New Supply

Q3 2014 Total Supply in Downtown and Midtown/Suburban areas = 438,087 units Downtown area = 104,677 units Midtown/Suburban areas = 333,410 units 3

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

CONDOMINIUM Bangkok Downtown and Midtown/Suburban Residential Map

4

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

CONDOMINIUM Newly Completed Condominiums Downtown and Midtown/Suburban Areas Newly Completed Condominiums in Downtown and Midtown/Suburban Areas, 1995-2018F No. of Units 70,000 60,000

50,000 40,000 30,000 20,000 10,000

Downtown

2018F

2017F

2016F

2015F

2014F

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

0

Midtown

New Completions in Q3 2014: Downtown = 356 units, Midtown/Suburban = 14,813 units

5

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

CONDOMINIUM Average Condominium Prices - Downtown Average Re-sale Prices of Completed Freehold High-End Units and Above, 2000-Q3 2014 THB/sq.m 200,000 180,000

186,250 175,623

160,000

172,000 168,619

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SILOM/SATHORN

CENTRAL LUMPINI

SUKHUMVIT

6

Q1 Q2 Q3 2014 2014 2014

AVERAGE PRICE (THB/SQ.M.)

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

CONDOMINIUM 5 Projects Selling at over THB 300,000 per sq.m. EXISTING CONDOMINIUMS

UNDER CONSTRUCTION CONDOMINIUMS

185 RAJADAMRI

SUKHOTHAI RESIDENCES

THE RITZ-CARLTON RESIDENCES

MARQUE SUKHUMVIT

MAGNOLIAS WATERFRONT AT ICONSIAM

Rajdamri

Sathorn

Sathorn-Narathiwat

Sukhumvit 39

Charoennakorn

236 Units (80% sold)

196 Units (85% sold)

200 Units (60% sold)

147 Units (50% sold)

379 Units (75% sold)

Completion Q1 2014

Completion 2012

Completion 2015

Completion Q4 2016

Completion Q3 2017

7

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

Large price differences between properties in similar locations

Bright Sukhumvit 24 Av. 175,000/sq.m. Completion: Q1 2012

The Emporio Place Av. 155,000/sq.m. Completion: Q1 2010

The Lumpini 24 Av. 185,000/sq.m. Completion: Q4 2015

President Park, Mahogany Tower Av. 50,000-60,000/sq.m. Completion: 1993

8

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

APARTMENT Supply, Demand and Occupancy Rate, 2004-Q3 2014

Occupancy Rate

Units

95.0%

14,000

100%

12,000 90% 10,000 80%

8,000 6,000

70%

4,000 60% 2,000

Supply

Demand

9

Q3 2014

Q2 2014

Q1 2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

50% 2004

0

Occupancy Rate

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

APARTMENT Total Expatriates with Work- Permits sorted by Nationality, Q3 2014

Number of Expatriates in Bangkok, 2004-Q3 2014 Persons 76,052

80,000 Japanese 24%

Other 33%

70,000 65,651 61,032 64,552 61,058 60,554 55,923 57,307 49,794

60,000 50,000

74,614 72,162 71,988

74,641

40,000 Chinese 11%

20,000

Q3 2014

Q2 2014

Q1 2014

2013

2012

2011

2010

2009

2008

2007

0 2006

Indian 7%

10,000 2005

British 7%

Filipinos 8%

2004

South Korean 4% American 6%

30,000

BANGKOK

Thailand: Total 127,576 / Bangkok: Total 72,162

10

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

SERVICED APARTMENT Occupancy & Rents Supply, Demand and Occupancy Rate, 2005-Q3 2014

Average Achieved Rents of Grade A units by Area, Q3 2014

Units 20,000

78.7%

THB/sq.m./ month

100%

1,049

1,400

16,000

80%

12,000

60%

1,100

8,000

40%

950

4,000

20%

1,250

800

Supply

Occupancy Rate

Demand

Q3 2013

Q3 2014

81.8%

78.7%

Silom/Sathorn

Rents

11

Lumpini

Q3 2014

Q2 2014

Q1 2014

2013

2012

2011

2010

2009

2008

2007

2005

Occupancy

2006

500

Q3 2014

Q2 2014

Q1 2014

2013

2012

2011

2010

2009

2008

2007

2006

0% 2005

0

650

Sukhumvit

Q3 2013

Q3 2014

THB 1,082

THB 1,049

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

HOTEL International Tourist Arrivals to Thailand No of International tourist arrivals to Thailand, 2004-2014

Total Arrivals 2014

No. of int'l tourist arrivals (Million)

Growth of no. of int'l tourist arrivals (Y-o-Y)

30

6.7% Y-o-Y

60%

50%

25

40% 20 30%

Bangkok Airport Arrivals Jan - Nov 2014 7.3% Y-o-Y

15 20% 10 10% 5

0%

No. of Int'l Tourist Arrivals

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

-10% 2004

0

Growth in No. of the Int'l Tourist Arrivals

12

Chinese Arrivals in 2014 2.4% Y-o-Y Chinese Arrivals in December 2014 86.5% Y-o-Y CBRE | BANGKOK PROPERTY MARKET – Q3 2014

HOTEL Supply Existing Supply

Future Hotel Supply in Downtown Bangkok, 2005-2017F

38,994 keys

No. of keys

14% increase to 44,363 (2014 – 2017)

14%

50,000

Top 5 Feeder Markets (2014)

40,000

30,000

20,000

10,000

China:

4,538,027

-2.4% Y-o-Y

Malaysia:

2,718,123

-7.5% Y-o-Y

Russia:

1,636,693

-5.4% Y-o-Y

Japan:

1,274,119

-16.9% Y-o-Y

Korea:

1,124,082

-13.3% Y-o-Y

Existing

2017F

2016F

2015F

2014F

2013

2012

2011

2010

2009

2008

2007

2006

Future Supply by Grade 2005

0

Future Supply

New Supply

13

Luxury:

17%

First-Class:

38%

Mid-Range:

29%

Economy:

16% CBRE | BANGKOK PROPERTY MARKET – Q3 2014

BANGKOK OFFICE MARKET Market Summary  Office demand continue improving  Rent increase  Limited future office supply

Q3 2014

TOTAL MARKET

A-CBD

B-CBD

A-NON CBD

B-NON CBD

Total Stock

8,273,237

1,203,613

2,902,252

531,221

3,636,151

Total Take up

7,483,881

1,122,836

2,597,168

482,233

3,281,644

Total Vacancy

789,356

80,777

305,084

48,988

354,507

9.5%

6.7%

10.5%

9.2%

9.8%

9.7%

7.2%

10.9%

10.7%

9.6%

Q3 2014 % Vacant Q2 2014 % Vacancy

14

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

BANGKOK OFFICE MARKET Vacancy Rate

sq.m. 9,000,000

45.0%

8,000,000

40.0%

7,000,000

35.0%

6,000,000

30.0%

5,000,000

25.0%

4,000,000

20.0%

3,000,000

15.0%

2,000,000

10.0%

1,000,000

5.0%

Total Supply

Total Take-up

15

2016F

2015F

2014F

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

0% 2000

0

Vacancy Rate

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

BANGKOK OFFICE MARKET Net Take–Up of Overall Bangkok Office Space

Net take up of Q3 2014 = 48,052 sq.m.

sq.m. 600,000 500,000 400,000 300,000

222,136 159,876

200,000

141,149

82,798

100,000 0 (100,000) (200,000)

Q1

Q2

Q3

16

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

(300,000)

Net New Take-Up

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

NEW OFFICE SUPPLY Office New Supply 2014-2016: Total 521,635 sq.m., Available for rent: 437,135 sq.m. Completion: 2014 Available for rent: 147,428 sq.m.

Own Own useuse

Built-to-suit: 29,500 sq.m.

Own use Own use SJ Infinite 1

Owner occupy: 20,000 sq.m.

The 9th Tower AIA Capital Center Dhipaya Insurance Business Complex B Non-CBD A Non-CBD A & B Non-CBD B Non-CBD 15,000 sq.m. 54,000 sq.m. 21,000 sq.m. 57,428 sq.m.

Built-to-suit

CH 5 New Office B Non-CBD 20,000 sq.m.

Built-to-suit

WHA for Hitachi B Non-CBD 7,000 sq.m.

U-Place B Non-CBD 22,500 sq.m.

Completion: 2015 Available for rent: 156,226 sq.m. Owner occupy: 35,000 sq.m

Own use Bhiraj Tower at EmQuartier A CBD 47,500 sq.m.

AIA Sathorn Tower A CBD 38,500 sq.m.

G Land Tower A Non-CBD 59,821 sq.m.

SET A Non-CBD 35,000 sq.m.

Major Tower B Non-CBD 10,405 sq.m.

Completion: 2016 Available for rent: 133,481 sq.m.

FYI B CBD 48,071 sq.m.

Bhiraj Tower at BITEC A Non-CBD 31,880 sq.m. 17

The Metropolis B CBD 13,540 sq.m.

Pruksa Head Office A Non-CBD 30,000 sq.m.

M Tower B Non-CBD 9,990 sq.m.

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

BANGKOK OFFICE RENT Average Achieved Rents of Bangkok Office Space

THB /sq.m. 804

850

832

837

845

608

626

636

596

609

741 688

650 551 550

553

479

477

417

431

450

570

598 561

512 526

587 544

549

Q2 2014

681

Q1 2014

750

552

474

350 250

CBD Grade A

CBD Grade B

Non CBD Grade A

Q3 2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

150

Non CBD Grade B

The average rent is calculated based on 200 – 300 sq.m. transactions. Larger transactions attain an approximately 5-15% discount from smaller transactions

18

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

APAC PRIME OFFICE RENTS Asia Pacific's Prime Average Office Rents, Q3 2014

1,074 1,045 987 900 871 871 842 813 0

1,000

2,178 2,149 1,946 1,917 1,888 1,858 1,829 1,742 1,742 1,597 1,481 1,336 1,278

2,000

2,613 2,468 2,468 2,468

3,020 2,933

3,485 3,339 3,339 3,281

3,000

3,833

4,000

6,418

5,488 5,285

5,000

6,000

7,000

THB/sq.m./month

19

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

RETAIL overview

Total Supply (million sq.m.) Total Take-up (million sq.m.) Average Occupancy Rate Retail Sales Index, July 2014

Total Market Q3 2014

Total in Downtown

Total in Midtown

Total in Suburb

% Change Q-o-Q

% Change Y-o-Y

6.63

1.4

2.2

3.0

2.1%

5.7%

6.23

1.3

2.1

2.9

1.9%

4.1%

93.9%

91.3%

93.7%

95.3%

-0.2%

-1.4%

1.0%

-4.4%

204.75

20

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

INDUSTRIAL Serviced Industrial Land Plots –Take Up Total Net New Take Up, 2000-2014 No. of SILPs (Rai) 12,000 10,000 8,000 6,000 4,000

First Quarter

Second Quarter

Third Quarter

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

0

2000

2,000

Fourth Quarter

From Q1 2014 to Q3 2014: Sold 961 rai, drop 72% Y-o-Y 21

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

INDUSTRIAL Ready-Built Factories – Supply Total Supply of RBFs, 2005-2014

Sq.m.

Vacancy Rate

2,500,000

30%

2,000,000

25% 20%

1,500,000 15% 1,000,000 10%

Total Space (sq.m.)

Total Take-up (sq.m.)

Q3 2014

Q2 2014

Q1 2014

2013

2012

2011

2010

2009

2008

0%

2007

0

2006

5% 2005

500,000

Vacancy Rate

Q3 2014 Occupancy Rate 72.5% down from 74.8% in Q2 2014 22

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

INDUSTRIAL Modern Logistics Properties Sq.m. 83%

2,500,000

84%

81%

82% 80%

2,000,000

80%

79% 78%

1,500,000

78% 76%

75%

74% 72%

1,000,000

70%

70% 68%

500,000

66%

Total Space (sq. m.)

Total Leased Space (sq. m.)

23

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

0

Q1 2013

64% 62%

Occupancy Rate

CBRE | BANGKOK PROPERTY MARKET – Q3 2014

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For more information regarding this presentation please contact: JAMES PITCHON Executive Director - CBRE Research & Consulting, Global Corporate Services T +66 2 654 1111 ext 2901 F +66 2 685 3300 [email protected]