Real Estate & Construction News in Thailand from Propertyshowrooms.com

Property growth expected in Thailand

Fri, 9 Nov 2012 08:05:32 GMT

Now may be the ideal time to invest in property in Thailand, with one of the country's leading housing developers expecting considerable growth over the next year.

Asian Property Development Pcl told Reuters that it is aiming for a 2013 revenue growth of 20 per cent from the expected 17 billion baht (£34 million approx) it will generate in 2012.

This money is largely the result of impressive sale numbers from condominium projects, with a further 17-18 expected to be launched next year.

Vittakarn Chandavimol, chief marketing officer of Asian Property Development, told the newspaper that the company will also increase its house prices by five per cent to reflect rising costs in the country.

Nevertheless, not all those in the Thai property market are as confident about the future, with the Bank of Thailand reporting a 1.15 per cent drop during the second quarter 2012 year end in single detached house prices, Global Property Guide reported in September.

However, the price index for houses increased by 3.3 per cent, while condominiums rose by 6.8 per cent.

Price rises predicted for Bangkok condominiums

Fri, 27 Jul 2012 08:10:52 GMT

The cost of buying a condominium (condo) in prime areas of Bangkok, such as Sukhumvit Road, is set to climb significantly by the end of this year.

Speaking to the Bangkok Post, Kitisak Jampathipphong, chief executive at Century 21 Realty Affiliates (Thailand) Co, explained new rules relating to environmental impact assessments (EIAs) will make property development more expensive.

This will therefore have a knock-on effect on the value of this kind of Thai property, he stated.

Mr Kitisak pointed out land values have risen, doubling in price in some locations, which will also help drive up the cost of buying condos in desirable areas.

In an interview with Property Report earlier this month, director of the residential department at Knight Frank Thailand Ulf Schaefer stated the market for "ultra-luxury residences" is becoming more established in Bangkok, with several developments in the city targeted at the super wealthy.

He highlighted the market's two distinct sections, which are super luxury condos and apartments serviced by a high-end hotel.

Bangkok retail property 'robust'

Fri, 22 Jun 2012 08:16:28 GMT

Retail property in Bangkok is showing signs of continued development as construction levels recover following floods in 2011.

This is according to new figures by CB Richard Ellis (CBRE), which showed 500,000 sq m of retail space will be completed by the end of 2012, if developers' predictions remain on track.

James Pitchon, executive director and head of CBRE research in Thailand, said: "All retail stores closed during the floods were reopened and retail sales improved. The two key trends are community malls in Bangkok and expansion of major retail developers."

He noted that CPN - the country's leading retail property developer - is looking to open a further five new malls upcountry by the end of this year.

Total retail supply in Bangkok increased to 5.75 million sq m in quarter one of 2012, a five per cent year-on-year rise.

Dan Tantisunthorn of Jones Lang LaSalle recently stated that this boom is due to higher incomes and continued economic growth.

Regulations 'may hold back Thai property growth'

Thu, 7 Jun 2012 08:32:41 GMT

Thailand's property market may be adversely affected by new regulations for developers, according to one industry expert.

Speaking at a conference, president of Noble Development Thongchai Busrapan cited the current floor-area ratio (FAR) as one example where more flexibility needs to be adopted, the Bangkok Post reported.

The FAR affects how many storeys a building can be. In some areas of the Thai capital, for example, an FAR of 1:10 is in place, which means for every square metre of land up to 10 sq m of building can be constructed.

Mr Thongchai asserted: "Thailand should have superblocks or more flexible FAR zoning, with higher FAR near public transportation to attract property development."

A report published by Colliers International earlier this year highlighted developers' concerns about the new town plan for Bangkok, noting one area of contention is the proposal to prevent buildings higher than 23 m being constructed on roads less than 16 m wide.

Many of Bangkok's roads are narrower than this, so the restriction would prevent high-rise development and affect land prices in the city.

Phuket's condominium supply to grow in Kata and Karon

Mon, 16 Jan 2012 00:00:00 GMT

During 2011, the Kata and Karon Beach areas of Phuket, Thailand, emerged as top locations for new condominium developments.

Nattha Kahapana, director of Knight Frank Phuket, revealed that last year, these two regions accounted for 59 per cent of the new supply in the condominium market.

He noted one of the main reasons for the rising number of new projects in Kata is the affordability of land in the district, compared to the most desirable area along Patong Beach.

Mr Kahapana added there is very little free space on this sought-after strip of land, which adds to the appeal of less-developed regions like Karon Beach and Kata.

A report published by CB Richard Ellis (CBRE) Thailand last year revealed there was an increase in the number of new condominium projects launched in Phuket during the third quarter of 2011.

However, the firm noted affordability is one of the key issues driving buyers in the marketplace, with demand strongest for Phuket properties in the under ten million Thai baht (£204,656) price bracket.

Housing developers 'showing more caution' in Thailand

Fri, 2 Dec 2011 00:00:00 GMT

Developers in the Thai real estate industry are exhibiting a greater degree of caution in their investments, it has been claimed.

A report published by CB Richard Ellis (CBRE) Thailand noted that a slowdown in demand from speculators has largely driven the change.

In Bangkok, firms that are purchasing land for construction projects are focusing on the area around the route of the new purple line railway system, the organisation revealed.

The track, which is currently under construction, is scheduled to open in 2014 and will provide train services between Bang Phai Canal and Tao Pun.

Meanwhile, developers are rushing to apply for building permission at many sites across Thailand, CBRE found, because proposed alterations to town planning regulations may make it more difficult for projects to get the go ahead.

One of the main changes being suggested under the new rules is a further restriction on the size of building that can be constructed on narrow roads, the firm highlighted.

Warnings sounded about property bubble in Thailand

Wed, 17 Nov 2010 00:00:00 GMT

Concerns surrounding the creation of a property bubble in Thailand have been raised by the country's Agency for Real Estate Affairs (AREA), Property Report has revealed.

AREA has warned that, if created, the bubble may burst if the planned numbers of launched units are completed in a few years time.

Indeed, the news provider explains that a total of 107,508 units spanning 398 developments may be underway by the end of the year, compared to just 57,604 units from 283 developments in 2009.

And AREA president Dr Sopon Pornchokchai warned that there was a genuine risk of the bubble bursting if the market continues to grow at the same pace as this year through to 2012-13.

"It will lead to an oversupply in the market. Resale prices and rents will also drop accordingly," he told the news provider.

"This would cause troubles to financial institutions that currently extend high-percentage mortgage loans, also to shareholders of those financial institutions, and last but not least to the overall Thai economy."

Property developers move to small Thai islands to cope with privacy demand

Sun, 27 Jul 2008 00:00:00 GMT

Property development in Phuket is expanding to four small nearby islands because of the demand for privacy...

Thailand upgrades economic forecast

Mon, 25 Feb 2008 00:00:00 GMT

Thailand's economy appears to be in good health following a move from the country's National Economic and Social Development Board (NESDB) to revise its growth estimates for the year upwards.

The NESDB said that it had changed its initial predictions of four to five per cent to 4.5 to 5.5 per cent, as consumption and investment rose.

The Thailand property market will be bolstered by news of infrastructure expenditure and a general increase in inward investment.

NESDB secretary-general Amphon Kittiampon said the signs were that the country was stabilising following a period of political uncertainty, with state and private investment set to grow.

Speaking to reporters, in quotes carried by Thomson Financial, he commented: "I would not have the confidence to make this forecast if I did not have solid data on major new investments and exports, in addition to the positive economic upturn in the final quarter of last year."

Acknowledging the risk that a global slowdown could impact on the country, he confidently predicted "sustained growth" for Thailand's economy.

Demand for Thai property to grow by 10%

Wed, 27 Jun 2007 00:00:00 GMT

Although the market currently remains "sluggish", one expert has claimed that the Thai property sector is set to see demand increase significantly over the course of this year.

Anupong Aswapokin, president and chief executive officer of Asian Property Development, said that the economic slowdown experienced by the country had a negative impact upon property, TNA reports.

While the market has seen consumers delay their decisions to purchase new homes due to both economic and political uncertainty, Mr Aswapokin told the news agency that investment in the business sector would pick up.

As a result of greater stability, demand for property is set to increase by ten per cent during the course of 2007, he predicted.

Overseas property advice service Amberlamb urges investors to try to "second guess" the Thai tourist market in order to make the most of property investment in the country.

Chai Mai to become "good investment choice"

Tue, 19 Jun 2007 00:00:00 GMT

New developments and value for money has led Thailand to become an attractive prospect for investors, it is claimed.

The country's second city of Chai Mai is tipped by experts to become a popular investment choice thanks to the construction of a new highway that will connect the city to Kunming, southwest China.

According to BuyAssociation, the property market has "sprung out of nowhere", attracting interest from overseas buyers who take advantage of the country's lure as a "luxury holiday location".

Investors are also pointed toward the city of Bangkok or southern beach resorts in order to "get a foot" on the property ladder.

Thai law prevents foreigners from owning land meaning "apartments are the more common choice" for property investors.

After the tsunami of 2004 caused severe damage in 2004 and with health risks such as avian flue posing a risk to south-east Asian countries, investors are advised to take comprehensive legal advice before buying in the country.

The Thai government's latest Board of Investment survey revealed that foreign investors from Japan, Taiwan, Singapore and the US currently make up the majority of foreign investors.

Thailand Property Still Buoyant

Tue, 3 Oct 2006 00:00:00 GMT

Despite last month's coup in Thailand, many investment analysts, amongst them Colliers CRE, are confirming there has not been a fall in property demand in Thailand. In fact the property market still looks sound, and the Thai interim government is intent on keeping the property sector buoyant.

Fund managers are reinforcing general views of economic stability, good exports and the fact that the coup was merely a result of short-term volatility. Banluesak Pussarangsri, director of Bangkok Bank’s Macro-economy Analysis Centre, draws attention to the fact that the currency and economy have actually stood up well in the face of recent events and states the Thai economy is expected to continue growth at approx. 4.5% this year. Meanwhile, many shrewd property investors are using the aftermath as an opportunity to buy in at better prices.

Thailand's new Suvarnabhumi Airport is preparing to open soon and it is expected this will transform Pattaya and its surroundings into a family resort area. Developers are buying up land to build quality hotels and shopping malls etc. and it is believed Pattaya will transform over the next five to 10 years. Other hotspots are currently in areas near the airport at Hua Hin, and Phuket, where tourism remains strong and well able to keep the property sector buoyant.