Industrial investment sales in Southeast Asia have surpassed office and retail sales for the first time in a decade, according to Cushman & Wakefield’s latest report.
The surge, driven by data centre investments, saw volumes increase more than four-fold to $3.2b, accounting for 40% of total industrial sales through 2024. This shift reflects the impacts of supply chain diversification, the growing digital economy, and hybrid work trends.
The report highlights that Singapore, Malaysia, and Indonesia are at the forefront of this growth, benefiting from robust infrastructure, rising cloud adoption, and supportive regulations for digital expansion. Wong Xian Yang, Head of Research for Singapore and Southeast Asia, noted, “Industrial and data centres will remain top priorities for institutional investors, with increasing capital allocated to logistics, life sciences, and AI-driven digital infrastructure.”
Southeast Asia’s economic resilience is further underscored by a projected GDP growth of 4.8% in 2024, up from 3.9% in 2023. The region’s competitive costs and expanding intra-regional trade are expected to bolster its 8% share of global exports, with Thailand being the only market where industrial sales did not dominate.
Cross-border investments are also set to rise, fuelled by initiatives like the Johor-Singapore Special Economic Zone and expanding intra-ASEAN trade agreements. Wong emphasised the importance of agility amidst macroeconomic shifts, stating, “Southeast Asia’s resilience and strategic positioning make it a prime destination for global capital.” As the region navigates global uncertainties, strategic investment in high-growth sectors is anticipated to drive long-term real estate growth.
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