Bangkok's office rents and capital values will continue to rise this year due to the lack of supply in the central business district, says property consultant Colliers International.
Only Jakarta and Beijing will record greater increases.
Colliers says Bangkok office rents will edge up another 10% this year, as no office developments are scheduled for completion
Office investment yields will be largely steady in the range of 5-7% in anticipation of the continued support of local end-users and investors.
In Jakarta, similar to last year, the office sector will continue to steal the limelight with anticipated 35% rent growth thanks to buoyant leasing demand from international companies engaged in banking and finance.
Beijing expects rental growth of 10.9%, with many domestic firms and some multinational companies seeking office space for relocation and expansion.
In Bangkok's residential sector, prospective rental and capital growth will be slowed by the plentiful supply of completed schemes, although some schemes under construction will be deferred due to the continued lack of construction workers.
Buyers comprising mainly locals will continue to support the market, particularly projects along mass transit lines.
With a general increase in domestic household incomes and the ongoing growth of retail sales, retail property in Bangkok continues to look positive.
Another growing trend is the gradual completion of residential projects in the suburbs, underpinning demand for shopping and retail facilities.
Industrial property rents and capital values will edge up steadily in Bangkok, but the sector will be relatively quiet in terms of transactions, particularly in the central area where premises have been completed for more than 15 years.
Japanese and European firms would rather go to the fringe areas of Bangkok to search for industrial sites with areas of 10,000 square metres or more.
In 2013, property prices in Asia are predicted to keep climbing, driven by rising prices of commodities including construction materials, growth expectations and underlying demand from end-users, occupiers and investors.
Looking at prospective gross domestic product growth, China will be the key driver, predicted to generate a significant spillover to other Asian countries.