Real Estate & Economic News in Thailand from Propertyshowrooms.com

Thai real estate 'displays mixed performance'

Tue, 1 Nov 2011 00:00:00 GMT

The performance of real estate assets in Thailand is mixed, with some markets faring considerably better than others.

Research released by Savills revealed that Bangkok's property sector is one of the most active in the country, with Pattaya also experiencing strong demand from both domestic and international buyers.

However, the firm noted that the picture is different in many of the country's other resort markets, where take up of residential real estate remains "subdued".

Phuket was singled out as one of the locations where the global economic climate has weighed on investor demand for homes in the area.

Robert Collins, chief executive officer at Savills Thailand, cautioned that Bangkok may not be such a buoyant market next year.

He explained that there are concerns among property investors "as supply is now recognised as likely to exceed rental occupier demand in 2012".

Meanwhile, worries continue over the severe flooding that has hit Thailand this month, with Bangkok among the areas affected this weekend by the rising waters of the Chao Phraya River.

Foreigners in Bangkok 'looking to lower and mid-priced properties'

Wed, 7 Sep 2011 00:00:00 GMT

An increasing number of foreigners living in the Thai capital are turning their attention to properties at the lower and middle end of the market, it has been noted.

The Bangkok Post reported that a shift is taking place among expats in the nation, who are looking for homes in Thailand away from the expensive and crowded city centre.

Speaking to the publication, Patima Jeerapaet, managing director of Colliers International Thailand, said that buyers are focusing on areas along the skytrain's extension lines.

He explained that the district of Thon Buri is popular because there are not many high-rise buildings, while Bang Na is favoured due to the number of international schools located there.

The news provider also revealed that the population in suburban parts of Bangkok has increased by more than 30 per cent over the ten years between 2000 and 2010.

Meanwhile, the luxury end of the Bangkok property sector has seen prices fall during the second quarter of this year due to reduced demand from investors, CB Richard Ellis found in a recent report.

Foreign investors 'returning to Thai property market'

Wed, 24 Aug 2011 00:00:00 GMT

There has been an increase in foreign buyers on the Thai real estate market since the country held peaceful elections earlier this month, it has been noted.

Chairman of Jones Lang LaSalle Thailand Longlom Bunnag told attendees at an event sponsored by Property Report South East Asia that investors viewed the successful elections as "a good sign for the country".

Meanwhile, managing director of Colliers International Thailand Patima Jeerapaet stated that buyers were coming from all over the world, including Singapore, China, Australia, the Middle East, Britain and Japan.

He added that Russian investors appear to be particularly interested in property in Pattaya and Phuket.

Last month, one expert described the Thai real estate industry as having "high growth potential".

Speaking in an interview with Property Report, business development manager at Dalvey Developments Noel Goh stated that the nation was becoming increasingly attractive to international investors as it is "shrugging off political uncertainties".

Experts forecast fall in Thai property market

Sat, 28 May 2011 00:00:00 GMT

Experts have forecast a ten to 15 per cent drop in prices within the Thai property market for 2011.

At the recent Property Market Outlook in 2011 seminar, analysts indicated that buyers should be able to take advantage of a fall in values, Property Report states.

According to the experts, high interest rates, rising inflation and increased construction costs are all contributing to the decline.

However, it is hoped that new government measures will go some way to improving market conditions.

The new interest-free loan programme is hoped to push those who had been considering purchasing to go ahead and buy while they are still able to take advantage of it.

It follows comments from the Phuket Chapter of the American Chamber of Commerce which suggested that the Phuket real estate market is maturing, with investors able to take advantage of the current low prices in the region.

Adam Smith, market analyst for Ocean Villas Group, said that in the wake of the global financial crisis "we have seen a large increase in demand for re-sale property" in the city.

Luxury buyers return to Thailand

Wed, 13 Oct 2010 00:00:00 GMT

There has been an increase in demand for luxury real estate in popular holiday destinations in Thailand, firms in the region are reporting.

For example, the Met at Sathon, which suspended sales two years ago, has seen a resurgence of demand for luxury residences and has reopened sales for the final 40 units in one of its major developments.

In addition, Pace Development, which has two luxury projects, said it has seen rising demand for both of them over the past two months, resulting in sales worth Bt600 million.

The news may interest individuals looking for Prachuap Khiri Khan property for sale or for property in Chon Buri.

Demand is being driven by an increase in foreign investment to the country, with buyers from Europe, Hong Kong, Singapore and India boosting confidence in the region.

According to David Simister, chairman of property consultants CB Richard Ellis, the medium and long-term demand for residential projects in areas of Thailand has recovered significantly.

Thai economy shows significant growth

Wed, 25 Aug 2010 00:00:00 GMT

The Thai economy grew by 9.1 per cent in the second quarter of the year, according to the latest figures, which could be good news for anyone looking for property in Chon Buri.

This was compared to 12 per cent growth in the first three months of the year and came amid political violence and protests in April and May.

High global demand boosted exports from the country, which grew by 42 per cent in the three months to June, fuelled mainly by shipments of auto parts and electrical appliances.

Investment also grew, following five consecutive quarters of contracting.

Earlier this month, it was reported that the Asia Pacific region is leading the global property recovery, with recovery in Europe and America being more laboured.

According to the second quarter International Residential Review from Chesterton Humberts, recovery in the region is being fuelled by both lifestyle and investment buyers, with demand remaining "firm".

Thailand and other Asian markets performing well

Tue, 30 Mar 2010 00:00:00 GMT

Far East destinations will begin to offer an increasing amount of options for foreign investment this year, a new report has stated.

According to the latest Wealth Report conducted by property consultants Knight Frank, emerging markets in the region - such as Thailand - are potential hotspots for canny real estate investors.

The publication, which examines locations from around the globe and comments on the opportunities available in them, has provided a positive outlook for the Asian market in general, with other destinations like Vietnam and Cambodia also mentioned.

In particular, high-end apartments in Thailand's capital Bangkok or luxury villas in Phuket have proven to be popular choices for investment.

Both regions are expected to benefit from the country's recovering economy and post improvements during 2010, the report noted.

However, land ownership issues and a lack of infrastructure have meant that investment and development has been restricted outside of the major cities.

Phanom Kanjanatheimthao, managing director of Knight Frank Thailand, explained: "People spending millions on a villa generally don’t want to be too isolated in case anything happens like a medical emergency."

Thai-based newspaper the Bangkok Post recently claimed that the property market in the city of Pattaya would post increases this year.

Thai property set for price increases

Mon, 8 Mar 2010 00:00:00 GMT

The Thai property market is bracing itself for price increases at the end of March after government officials decided that they would not be renewing tax breaks.

According to a report on Property Wire, the decision was made after news that the country's economy was in recovery and many developers are now running at a profit was released.

Incentives including reductions in property transfer fees and lower mortgage registration costs have helped to boost sales in 2009 by as much as seven per cent.

It will mean that the current transfer tax - set at 0.01 per cent - will rise to two per cent while mortgage registration fees will increase from 0.01 per cent to one per cent.

The news may be of interest to individuals looking to purchase property in the Asian country, who will have to move quickly to take advantage of the reduced costs.

Land & Houses, the country's largest developer, explained that the changes would result in single figure, rather than double figure growth for the coming year.

The International Valuation Standards Council recently introduced guidelines that will make the Thai property market more transparent.

Bangkok property market has "stagnated"

Sat, 7 Feb 2009 00:00:00 GMT

Investment in Bangkok's property market remains low, despite an increase in the number of properties available in the Thailand capital, a new study has concluded.

Research by real estate services firm Jones Lang LaSalle revealed that there is still disparity between the price expectations of buyers and sellers.

Managing director of the firm's Thailand branch Suphin Mechuchep stated that while interest in the market is still strong, actual investment activity in recent months has "stagnated".

"Investors are mostly looking for distressed assets offered at deeply discounted prices. At the same time, sellers refuse to dispose of their property assets at a loss," he explained.

And Jones Lang LaSalle's director of investments Umpon Thepnumsommanus noted that while the firm has received a number of enquiries regarding real estate, the vast majority are buyers looking for distressed assets.

Property expert Nick Marr recently claimed that Thailand offers "great potential" for investment, as it has attracted the interest of developers, airlines and holidaymakers.

Govt has backup economic plans: PM

Mon, 19 Jan 2009 00:00:00 GMT

Prime Minister Abhisit Vejjajiva on Monday met investors and told them that the government has backup plans, if the economic slump continues in the third and fourth quarters of this year...

Central bank cut one-day RP rate

Wed, 14 Jan 2009 00:00:00 GMT

The Bank of Thailand (BoT)'s Monetary Policy Committee on Wednesday resolved to slash the one-day repurchase (RP) rate to 2.0 per cent, or 0.75 per cent lower, in a bid to revitalise the local economy...

BoT wants govt to boost export, tourism

Tue, 25 Nov 2008 00:00:00 GMT

(BangkokPost.com) - Bank of Thailand (BoT) governor Tarisa Watanagase said Thailand has yet to experience direct impact from the global financial turmoil, as the excess liquidity in the market is around 1.5 trillion baht...

Economy likely to worsen next year: NESDB

Tue, 25 Nov 2008 00:00:00 GMT

(BangkokPost.com) - The economic downtrend could intensify next year, National Economic and Social Development Board (NESDB) secretary-general Ampon Kitti-ampon said on Tuesday...

Interest rate cut likely

Wed, 12 Nov 2008 00:00:00 GMT

(BangkokPost.com) - The Bank of Thailand (BoT) has no plans to hold an urgent meeting to handle the financial crisis but is ready to loosen up the interest rate, BoT deputy governor Atchana Waiquamdee said on Wednesday...

BoT advised to cut interest rates

Sun, 2 Nov 2008 00:00:00 GMT

Citing fears of a possible Thai economic recession due to global downturn, members of the Thai private sector urged the Bank of Thailand (BoT) to further lower interest rates...

Thai market falls on US bailout uncertainty

Mon, 29 Sep 2008 00:00:00 GMT

Shares on the Stock Exchange of Thailand shed 2.86 per cent of their value on Monday as investors remained uncertain about the global outlook despite the proposed US $700 billion bailout...

Govt to continue with economic stimulus package

Wed, 24 Sep 2008 00:00:00 GMT

(BangkokPost.com) - The government will continue to implement the economic stimulus programme because it could help shoulder financial burden of the people, Prime Minister Somchai Wongsawat said Wednesday...

Somkid: Govt can overcome economic woes

Tue, 23 Sep 2008 00:00:00 GMT

(BangkokPost.com) - Former deputy prime minister and finance minister Somkid Jatusripitak expressed confidence that if the government does not become imprudent it can rescue Thailand from the economic crisis because the country had dealt with similar situations in the past...

World Bank: Turmoil brings short-term impact

Wed, 10 Sep 2008 00:00:00 GMT

The current political turbulence in Thailand will produce a short-term negative impact on the Southeast Asian country, a senior Bangkok-based World Bank economist said Wednesday...

Surapong: Economy in 2nd half to grow below 6%

Wed, 10 Sep 2008 00:00:00 GMT

(BangkokPost.com) - Political turmoil facing Thailand may cause economy to grow less than targeted 6% in the second half of 2008, according to Deputy Prime Minister and Finance Minister Surapong Suebwonglee...

UNCTAD chief confident of economic fundamentals

Mon, 8 Sep 2008 00:00:00 GMT

The Thai economy remains strong and able to continue growing in the long run despite the short-term impact of the current political turmoil, according to United Nations Conference on Trade and Development (UNCTAD) secretary-general Supachai Panichpakdi...

BoT upbeat about economic fundamentals

Wed, 3 Sep 2008 00:00:00 GMT

Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday expressed confidence in the country's strong economic fundamentals, saying that the sluggish economy could turn around if the country's domestic political turmoil come ends to an end shortly...

Central bank prevents baht from weakening

Tue, 2 Sep 2008 00:00:00 GMT

(BangkokPost.com) - The Bank of Thailand (BoT) intervened in the foreign exchange on Tuesday morning to halt further devaluation of Thai baht, according to deputy BoT governor on fiscal policy Ajana Waikwamdee...

Rallies affect investor confidence on short-term: TDRI

Wed, 27 Aug 2008 00:00:00 GMT

Ongoing rallies by the People's Alliance for Democracy (PAD)-led demonstrators will have a short-term impact on the economy, particularly investor and consumer confidence, according to Thailand Development Research Institute (TDRI)...

No changes in 6 economic measures: Surapong

Thu, 21 Aug 2008 00:00:00 GMT

(BangkokPost.com) - The government will not adjust its six six-month economic relief measures, particularly the subsidisation of oil, according to Deputy Prime Minister and Finance Minister Surapong Suebwonglee...

Surapong: Central bank governor won't be sacked

Fri, 8 Aug 2008 00:00:00 GMT

(BangkokPost.com) - Finance Minister Surapong Suebwonglee said disagreement between the ministry and the central bank over how to best tackle inflation will not lead to the sack of central bank governor Tarisa Watanagase...

Surapong optimistic about better trade in South

Thu, 17 Jul 2008 00:00:00 GMT

(BangkokPost.com) - Finance Minister Surapong Suebwonglee said he believes southern border trading and tourism will improve after a group claiming to be leaders of southern insurgency announced a ceasefire.

Phuket property booming as fears of adverse effects of the tsunami and political coup subside

Sun, 6 Jul 2008 00:00:00 GMT

A booming tourism industry is helping one part of Thailand buck the downward trend in property prices...

Thailand proving to be a strong property market, experts agree

Sun, 15 Jun 2008 00:00:00 GMT

The Thailand property market is still making good returns for investors despite worries about inflation, according to experts...

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.

Thailand 'unaffected by US housing market problems'

Thu, 2 Aug 2007 00:00:00 GMT

The recent housing market decline in the USA is unlikely to impact upon the economy in Thailand, according to one expert.

Suchada Kirakul, assistant governor of the Bank of Thailand, said that investors are losing confidence in the US dollar and choosing to look to other markets instead, Thomson Financial reports.

"But in Thailand we have several measures to monitor capital flows, while the property market has not over-expanded," Ms Kirakul said.

Although the news provider reports that concerns have been raised that the US mortgage market may have had a negative impact upon Asian stocks, the problems faced by investors in the US are "certain" not to happen in Thailand, Ms Kirakul stated.

Last month, James Pitchon, executive director of CB Richard Ellis Thailand, said that the country is in a "very strong" position to attract foreign retirees and second home buyers, the Bangkok Post reports.

Economic growth boosts Thai property market

Mon, 2 Jul 2007 00:00:00 GMT

Ongoing economic growth in Thailand has led to a significant boost in the country's property market, creating fresh opportunities for investors and signalling continued growth in the future.

With annual capital growth of between ten and 15 per cent, the market offers profitable investment opportunities and is subsequently seeing an influx of buyers looking for attractive property investment opportunities.

Swift economic growth underpins this property boom and is likely to have an accumulative effect as property growth leads to increased tourism.

Figures from Aston Lloyd & Partners show an increase in sales during the past three months, coupled with a steady increase in property prices in desirable locations.

It is thought that these conditions are conducive to increased activity among private buyers and buy-to-let investors alike, in line with increased demand for housing and accommodation.

Meanwhile, reports from Obelisk International highlight a strong economic recovery in Thailand following the Tsunami in 2004, with strong tourism, inward foreign investment and sustained interest from foreign investors.

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.

Bangkok benefiting from regional market renaissance, says study

Thu, 31 May 2007 00:00:00 GMT

Growth in the Asian-Pacific countries is "robust" thanks to new business and corporate expansion, a new property report has found.

According to the latest Jones Lang LaSalle Asia-Pacific survey, the property market in Bangkok is in line with the region's overall market strength, despite political and economic uncertainty in Thailand.

The research shows that strong market fundamentals have not only helped to drive up rents in Bangkok but have prepared the ground for a strong performance next year, especially if the forthcoming general election dampens down political strife.

"Rents are likely to stay buoyant with new supply low in the short term," Jane Murray, head of Asia-Pacific research at Jones Lang LaSalle, told the Thailand Real Estate & Property Guide.

Research by the firm has shown that return rates in the Bangkok property market range between six and ten per cent.

The Bangkok Post recently reported that although the Thai capital has seen a decline in sales, the market has managed to resist a significant price decline, while some premium sector prices are rising.

Investors 'remain confident' in Thailand

Wed, 16 May 2007 00:00:00 GMT

Foreign investors have remained focussed on Thailand despite political and economic uncertainties, a leading real estate services firm has said.

According to Jones Lange LaSalle, although internal changes in Thailand ? such as revised investment laws ? had shaken the confidence of outsiders, investors are confident that conditions will improve.

Longlom Bunnag, the company's chairman, said that investors believe Thailand's troubles are temporary and are hoping that the economic conditions will improve around the time of the general election in December, reports the Thai News Agency.

"Although the property market in Bangkok is likely to slow down this year, the market fundamental remains strong," said Mr Bunnag.

"A slow demand in the market stemmed from a lack of confidence among consumers and investors rather than lower purchasing power."

He went on to say that high investment returns in Bangkok would continue to attract foreign and local investors.

An Israeli property firm recently signed a letter of intent to buy a high-rise development in Bangkok ? a sign that investors have not lost hope in Thailand, according to Thailand Real Estate & Property Guide.

Explore high-end condos in Thailand 'before they vanish'

Thu, 3 May 2007 00:00:00 GMT

Despite political and economic uncertainties in Thailand, long-term investors are increasingly interested in buying up condominium units, an international property consultancy, has said.

According to a study by CB Richard Ellis (CBRE), while the stock of existing condominiums in Bangkok has increased, the luxury-end of the market has declined, which means supply is now limited.

This has prompted CBRE to recommend that investors take action now and enquire about a high-end condo before they all disappear.

CBRE Thailand managing director Aliwassa Pathnadabutr said that luxury condo units in prime locations like Saladaeng continue to generate "good" sell-out prices.

And according to client feedback, investment returns in the form of rental yields and capital appreciation is between five and seven per cent.

Furthermore, she said that luxury condominium projects in Bangkok continue to be much cheaper than in neighbouring nations, which makes it more likely that investors will be keen to snap up available property.

According to Thailand Real Estate & Property Guide, overseas and Thai investors are pushing up land and property prices on the island of Phuket as the tourism sector starts to improve after the devastating tsunami on Boxing Day 2004.

Look to south-east Asia for new markets, buyers told

Thu, 29 Mar 2007 00:00:00 GMT

Overcrowding in China's property market has prompted overseas buyers to look to other countries in south-east Asia, according to Property Frontiers.

Foreign buyers are increasingly looking to the likes of Thailand and Malaysia, which are dependant on the Chinese economy, but are not as restricted in terms of foreign investment.

Spokeswoman Marsha Lu said that China was a very successful destination for overseas investors last year, but economic and political manoeuvres effectively shut down the market.

"China's currency value was increasing, so the central bank had lots of pressure on maintaining the value of Chinese currency," she said.

"Therefore, they actually issued seven regulations last year to try to slow down foreign investment."

However, buyers interested in Thailand or Malaysia need to be "quite cautious" and make efforts to understand the political situation in these countries before making a long-term commitment.

Earlier this month, Thailand scrapped the majority of capital controls that were imposed in December. However, investors have been asked to take hedging measures to avoid profiting from fluctuations in the currency.

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.