Bangkok Overall MarketView

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1 24 25 Q1 212 Q2 212 Q3 212 Q Q1 212 Q2 212 Q3 212 Q F 214F Bangkok Overall MarketView Q4 212 CBRE Research Thailand STRONG Q4 212 PERFORMANCE FOR MOST SECTORS APARTMENT Figure 1: Supply, Demand and Occupancy Rate, 24-Q4 212 Figure 2: Supply of Expatriate Apartments, F Supply Demand Existing Supply New Supply 14, 12, 1, 8, 1% 9% 8% 13, 12, 11, 1, 6, 4, 2, 7% 6% 5% 9, 8, 7, 6, In Q4 212 the total number of downtown apartment units increased slightly by.7% Q-o-Q and decreased 1.9% Y-o-Y, from 11,671 units in the last quarter to 11,755 units this quarter. This is because three apartment were under renovation and one has stopped its operation. Occupancy in Q4 212 was 9.6%, up from 88.6% in Q A total of 1,65 units were occupied this quarter, up from 1,38 units in the last quarter. The Central Lumpini area posted the best results and the highest achieved rents with Grade A rents of THB 421 sq.m./month, up 2.2% Q-o-Q and up 2.2% Y- o-y. The number of expatriates holding work permits in Thailand increased 12.9% Y-o-Y, increasing from 19,45 in Q3 212 to 113,663 in Q Japanese nationals made up 24% of the total , CB Richard Ellis (Thailand) Co., Ltd.

2 F 214F 215F F 214F 215F 216F 217F F 214F 215F 216F 217F Q4 212 Bangkok Overall MarketView CONDOMINIUM AND HOTEL CONDOMINIUM Figure 3: Newly Completed of Bangkok Condominiums, F No. of 6, 5, 4, 3, 2, 1, Figure 4: Supply, Demand and Vacancy Rate in Downtown Bangkok, F Midtown Downtown Total Supply Total Occupied Vacancy Rate Vacancy Rate 14, 12, 1, 8, 6, 4, 2, 1% 8% 6% 4% 2% % In Q4 212, the total completed supply in downtown and midtown areas reached approximately 346,59 units. Of this, 98,899 units or 29% were located in the downtown area, while 247,691 units or 71% were located in the midtown area. Twelve projects were launched in Q4 212 in the downtown area. Condominium developers launched more new units with 2,697 newly launched units compared to 1,153 units in the same period last year. Fifty-nine percent of the units in newly launched projects were onebedroom(59%), followed by two-bedroom units accounting for 28%. HOTEL Figure 5: ADR and of Hotels (All Grades) in Bangkok, -212 The overall occupancy rate for the downtown area decreased slightly to 77.% in Q4 212 compared to 77.4% in the previous quarter. Prices continue to rise for a limited number of the best located, best quality completed projects. Prices for new projects are expected to increase due to increase in land prices. Figure 6: Future Hotel Supply in Downtown Bangkok, F THB 4, 3, 2, 3,178 ADR Occupancy 2,975 2,993 3,19 1% 8% 6% 4% No. of keys 5, 4, 3, 2, New Supply Existing 1, 2% 1, 212 % 2 Source: STR Global Tourist arrivals grew rapidly pushing up the average occupancy rate of hotels of all grades in Bangkok to 71% in 212 from 64% in. Supply grew in Q4 212 by 1,124 keys with the completion of seven new hotels this quarter. The Average Daily Rate (ADR) of all grades of hotels in Bangkok was THB 3,19, an increase of.9% Y-o-Y (STR). Revenue per Available Room (RevPAR) was THB 2,134 in 212, a Y-o-Y improvement of 12% (STR). There are currently 34,971 hotel keys in the downtown Bangkok area. There will be an estimated 7,238 additional keys by the end of 215, bringing the total to 42,29. This represents a 21% increase on current figures. 212, CB Richard Ellis (Thailand) Co., Ltd.

3 25 Q1 212 Q2 212 Q3 212 Q Q1 212 Q2 212 Q3 212 Q Q1 212 Q2 212 Q3 212 Q Q1 212 Q2 212 Q3 212 Q4 212 HOUSING Figure 7: New Supply of Residential in BMR, 21-Q4 212 Total 12, 1, 8, 6, 4, 2, Condominium Self-Built Semi Developer-Built TH Self-Built TH Developer-Built SDH Self-Built SDH Developer-Built Semi HOUSING AND INDUSTRIAL Figure 8: New Supply of Developer-Built Single-Detached Houses in the BMR, 21-Q , 25, 2, 15, 1, 5, Q4 212 Bangkok Overall MarketView The number of newly completed residential units in the Bangkok Metropolitan Region (BMR) in Q4 212 was 33,974 up 41% Q-o-Q and 135% Y-o-Y. In Q4 212 the new supply of housing dropped by 19.% while condominiums increased by 125.6% Q-o-Q. At the end of 212, there were 111,573 newly completed residential units, rising by 37.5% Y-o-Y from 81,119 units in. 46,857 housing units were completed in 212, increasing slightly by.7% from 46,511 units in ; while, 64,716 condominium units were completed in 212, rising significantly by 87% from 34,68 units in the previous year. INDUSTRIAL 28 new housing projects were launched by major developers in Q4 212 with 3,586 single detached houses, 3,417 townhouses and 24 semi-detached houses, decreasing from 31 projects in Q Pruksa and Land & House were the first and second in terms of new housing units in this quarter, they launched 2,384 units (9 projects) and 1,636 units (4 projects), respectively. Townhouse projects were largely concentrated in the eastern part of Bangkok, especially Ramkhamhaeng, Pattanakarn and Ram Indra. Singledetached houses were concentrated in the western areas, particularly Tiwanon, Chaengwattana, Ratchapruk, Rattathibet and Pinklao, followed by the eastern areas such as Patanakarn, Ramkhamhaeng and Srinakarin. Figure 9: Supply, Demand and Occupancy Rate of SILPs, 25-Q4 212 Total Supply Total Take-up (%) Of Completed SILPS Sold by Developer Rai 12, 1, 8, 6, 4, 2, 1% 95% 9% 85% 8% 75% 7% Figure 1: Total Supply of RBFs, 25-Q4 212 Sq.m. 2,, 1,8, 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, Total Supply Total Take-up Vacancy Rate Vacancy Rate 3% 25% 2% 15% 1% 5% % 3 Total industrial land sales for Q4 212 were 4,444 rai (1,757 acres) while total sales for the full year 212 were a record 1,781 rai (4,297 acres). Total sales for full year were 5,757 rai (2,276 acres). Total Serviced Industrial Land Plot (SILP) sales increased from 2,753 rai (1,88 acres) in Q3 212 to 4,444 rai (1,757 acres) in Q4 212 representing a 61.4% increase Q-o-Q and an 122.2% increase Y-o-Y. The occupancy rate of ready-built factories was 82.5% in Q3 212, down from 86% last quarter. The strong demand for industrial land in 212 was largely driven by Japanese companies who account for 87.4% of BOI approved projects with foreign registered capital. Thailand has been attracting investment from Japanese companies for several reasons; electricity costs in Japan have risen after the earthquake and tsunami, the country is facing an aging labour force resulting in a less competitive manufacturing market and anti-japanese sentiment over claims to the East China Sea Islands has caused disruption for some Japanese manufacturers in parts of China , CB Richard Ellis (Thailand) Co., Ltd.

4 Q1 212 Q2 212 Q3 212 Q Q1 212 Q2 212 Q3 212 Q4 212 TU-PF LUXF CTARAF QHOP UOBAPF PFFUND MNRF SSTPF FUTUREPF MNIT2 TTLPF M-AAA MONTRI GOLDPF MSPF M-STOR TLOGIS DTCPF TNPF BKKCP MJLF POPF SPF QHPF WHAPF CPNRF TFUND TRIF MIPF TIF1 MNIT UOB8TF JCP** TCIF URBNPF LHPF CPNCG M-II QHHR SSPF TLGF* Q4 212 Bangkok Overall MarketView INVESTMENT AND SERVICED APARTMENT INVESTMENT Figure 11: Estimated Gross Freehold Initial Yield, Q4 212 Percentage (%) % 1-Yr Government Bond % Luxury Residential 5.5-7% 5.5-7% Prime Office Prime Retail 8-9% Industrial Figure 12: Dividend Yield 12-Month Trailing (%), Q % 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Land prices in the CBD are rising significantly. BTS Group Holding PCL. sold its investment in Kampoo Company which owns a 3-rai 1 ngan 69 sq.wah (5,476 sq.m.) land site near Nana BTS sky train station to a Thai company. The total price paid for this land plot was THB 1,811 million (US$ 6.4 million) or THB 1,322,91 baht per sq.wah, a record for that area. CBRE were appointed by TMB Bank Public Company Limited to market and sell a 5 rai 2 ngan 34 sq.wah (8.936 sq.m.) site with buildings on Silom road. The property was sold be tender to Carabao Tawan Dang Co., Ltd. The MFC Industrial Investment Property and Leasehold Fund (M-II) held its Initial Public Offering (IPO) on 26 November-4 December 212. The fund offered 97 million investment units with a par value of THB 1. per unit, raising a total capital of THB 97 million to invest in 14 freehold factory buildings and 18 leasehold factory buildings sold by Thai Factory Development PCL. (a net rental area 39,36 sq.m., which equates to a price of THB 24,644 per sq.m. of net lettable area). The property fund was listed on the SET on 27 December 212. SERVICED APARTMENT Figure 13: Average Achieved Rents of Grade A by Area, Figure 14: Supply, Demand and Occupancy Rate, THB/sq.m./ month 1,4 1,25 1, Sukhumvit Silom/Sathorn Lumpini Supply Demand Occupancy 15, 1,184 12, 1,174 9, 97 6, 3, 1.% 8.% 6.% 4.% 2.%.% 4 The supply of serviced apartments increased by 1.2% Q-o- Q and 2.3% Y-o-Y from 15,42 in to 15,386 in 212. Four new serviced apartments were completed this quarter with a total of 181 keys. An additional 279 units are expected to be completed by 213, bringing the total supply of serviced apartments to 15,665. This is a growth of 2% on 212 figures. The average occupancy rate increased from 76.7% in to 82.5% in 212. The average achieved rental for serviced apartments in downtown Bangkok increased to THB 1,95/sq.m./month in 212, an increase of 4.1% 212, CB Richard Ellis (Thailand) Co., Ltd.

5 F 214F 215F OFFICE Figure 15: Bangkok Office Market, 2-215F sq.m. 9,, 8,, 7,, 6,, 5,, 4,, 3,, 2,, 1,, Total Supply Total Take-up Vacancy Rate Vacancy Rate 45.% 4.% 35.% 3.% 25.% 2.% 15.% 1.% 5.% % OFFICE AND RETAIL Q4 212 Bangkok Overall MarketView The office market continues to improve steadily with a decrease in the vacancy rate and an increase in achieved rental rates in both grades and areas. The total office supply increased to 8,93,818 sq.m., a.2% increase Q-o-Q due to the completion of Ratch Building, the new head office of Ratchaburi Electricity Generating Holding Plc. The total take-up increased by.9% Q-o-Q to 7,11,598 sq.m. RETAIL Figure 16: Bangkok Retail Supply, Take-up and, Net Area (sq.m.) 7,, 6,, 5,, 4,, 3,, 2,, 1,, Total Supply Total Take-up 1.% 98.% 96.% 94.% 92.% 9.% 88.% 86.% 84.% 82.% The occupancy rate improved slightly to 87.9% this quarter from 87.3%. In Q4 212, the total net take-up for the whole market was 47,18 sq.m., up by16.3% Q-o-Q. The total take-up in 212 was 159,876 sq.m., a 93.1% increase Y-o-Y. The highest rents are in new grade A buildings in the CBD. In Q4 212, average rents for grade A office space in the CBD rose by 2.1% Q-o-Q and by 9.1% Y-o-Y to THB 766/sq.m./month with the highest rent being THB 925/sq.m./month in Park Ventures. The total retail supply in Bangkok as of Q4 212 rose to 6.21 million sq.m., an increase of 1.38% Q-o-Q and 8.88% Y-o-Y. The biggest new development completed in this quarter Watergate Pavillion in downtown Bangkok. The two largest developments under construction in the downtown area are Central Embassy and Emquartier. The overall Bangkok occupancy rate was healthy at 96.48%, up 1.36% Q-o-Q and 4.81% Y-o-Y. In December 212, Thailand s Consumer Confidence Index (CCI) was quite stable at 8.2, compared to the average of 77.7 in Q The Retail Sales Index was very strong, at as of November 212, increasing by 3.13% Q-o-Q or 54.76% Y-o-Y due to flooding last year , CB Richard Ellis (Thailand) Co., Ltd.

6 Q4 212 Bangkok Overall MarketView Bangkok Property Report The Bangkok Property Report, now in its 14th year, is CBRE Thailand s flagship quarterly subscription publication, with data from a tried and tested database reinforcing its reputation as Bangkok s definitive property sector source. The Bangkok Property Report provides in-depth analysis of the Bangkok real estate market, including property supply and demand, occupancy, take-up, prices, rental trends and other indicators. Phuket Property Report The Phuket Property Report, the latest quarterly subscription report by CBRE Research in Thailand, is an initiative designed to bring professional analysis and transparency to the growing Phuket property market. The report provides detailed information and analysis from CBRE s comprehensive and unrivalled Phuket and overall Thailand database, combined with our own exhaustive market and property surveys. Thailand Hotel Report The CBRE s Thailand Hotel Report provides the most up-to-date and in-depth analysis built on CBRE s comprehensive databases and unrivaled experiences in the hotel market in Thailand available now in a quarterly format. It provides a one-stop access to CBRE s market-leading data and analysis, enabling timely, informed decision-making on management, development, and investment strategies in the hotel market, and offering subscribers a tactical edge. Bangkok Retail Report The CBRE s Bangkok Retail Report is produced quarterly by professional retail research team who closely monitor the complex retail database so that our in-depth analysis will be definitely the most meaningful. The report covers all necessary topics which are able to be a part of your strategic future business plan. Retail supply, demand, take-up, occupancy, and other indicators that have an effect on the retail market such as retail sale index are all provided , CB Richard Ellis (Thailand) Co., Ltd.

7 CONTACTS For more information about this Bangkok MarketView, please contact: CBRE Research, Thailand James Pitchon Executive Director CBRE Research CB Richard Ellis (Thailand) Co., Ltd. 46 th Floor, CRC Tower, All Seasons Place 87/2 Wireless Road, Lumpini, Pathumwan Bangkok 133 Thailand t: ext 25 e: james.pitchon@cbre.co.th Natapat Watanakulchai Senior Analyst CBRE Consulting CB Richard Ellis (Thailand) Co., Ltd. 46 th Floor, CRC Tower, All Seasons Place 87/2 Wireless Road, Lumpini, Pathumwan Bangkok 133 Thailand t: ext 629 e: natapat.watanakulchai@cbre.co.th Q4 212 Bangkok Overall MarketView + FOLLOW US FACEBOOK BLOG Global Research and Consulting This report was prepared by the CBRE Thailand Research Team which forms part of CBRE Global Research and Consulting a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe. Disclaimer 212, CB Richard Ellis (Thailand) Co., Ltd. CB Richard Ellis (Thailand) Co., Ltd. confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE , CB Richard Ellis (Thailand) Co., Ltd.