Thailand Property News Highlights August 21 - 25, 2023

From Real Estate Titan to PM Candidate: Srettha Thavisin's Political Leap

Srettha Thavisin, former CEO of Sansiri, Thailand's leading real estate firm, is the 30th Prime Minister in Thailand. From Pheu Thai Party, this strategic shift was underscored by Thavisin transferring his substantial Sansiri shares to his daughter, Ms. Chananda Thavisin. His departure from the corporate world comes amid notable political events, including the return of former Prime Minister Thaksin Shinawatra. Founded in 1984, Sansiri navigated significant economic challenges like the Tom Yum Kung Crisis and expanded its ventures globally. With a background in finance and a proven track record in business, Thavisin's entry into politics is keenly observed by many.

Reference: https://www.thansettakij.com/real-estate/574128

Ananda MF Asia Asoke Co., Ltd. Outlines Progress Plans Post Supreme Administrative Court's Ruling

In light of the Supreme Administrative Court's recent judgment on July 27, 2023, Ananda MF Asia Asoke Co., Ltd. has outlined a comprehensive roadmap to address the project's challenges. The company has proposed five key solutions: 

1) Securing additional land to meet Ministerial Regulation No. 33 and reapply for construction permits, estimating a six-month timeline from land acquisition. 

2) Submitting a petition for a new trial at the Administrative Court.

3) Coordinating with original landowners to reclaim land unused by the Mass Rapid Transit Authority of Thailand (MRTA).

4) Recommending amendments to laws concerning land expropriation.

5) Suggesting changes to regulations on building locations. Additionally, the company is liaising with major financial institutions to assist co-owners with loan installments.

Reference: https://www.bangkokbiznews.com/property/1084861

Sansiri Refutes Claims over Illicit Sukhumvit Land Purchase Methodology

Sansiri Public Company Limited has issued an official statement to dispel misconceptions in response to claims insinuating illicit land purchase practices. The firm emphasized that its acquisition of a plot on Sukhumvit Road, adjacent to Soi 12 in 2016, was conducted transparently and lawfully. The purchase, covering 890.5 square wah, was brokered at a market-comparable rate of 1,950,000 baht per square wah, with the total amounting to 1,734,525,000 baht. The seller bore all associated transfer costs. Sansiri also clarified that it has no affiliation with Siwa Land Co., Ltd., the land's previous owner, and has never conducted any business with Crown City Limited. Furthermore, the company denied any international fund transfers related to this purchase. Sansiri reiterates its commitment to transparent and legal operations.

Reference: https://www.bangkokbiznews.com/property/1084591

Real Estate Market in Thailand Faces Headwinds, as Rental Demand Soars Amidst Economic Pressures

Amidst political uncertainty, economic downturn, and rising interest rates, the Thai real estate market showcases mixed trends, as revealed in DDproperty's Thailand Property Market Report for Q3 2023. Despite a modest quarterly growth of 1% in Bangkok's housing price index, it still reflects a decline of 6% YoY, and a substantial 10% decrease since pre-COVID-19 levels in 2019. These figures mirror the long-term stagnation in housing prices, albeit with slight hikes across sectors owing to the escalating construction costs. This rise is tempered by factors such as a 15-year peak in household debt and a declining Consumer Confidence Index, currently at 55.6. The General Manager of DDProperty, Mr. Wittaya Apirakwiriya, notes the necessity for strategic financial planning for potential buyers in this climate. Meanwhile, the 'Generation Rent' trend has intensified, with rental demand skyrocketing by 108%, as the younger generation opts for flexible leasing over home ownership.

Reference: https://www.bangkokbiznews.com/property/1084986

Pruksa Holding's Q2 2023 Performance Soars, With Real Estate and Healthcare Businesses Driving Profits

In the second quarter of 2023, Thailand's renowned real estate developer, Pruksa Holding, reported a notable surge in its net profits by 141% to 1,038 million baht. This rise is attributed to the robust performance of both its real estate and healthcare sectors. In the real estate realm, sales reached 4,650 million baht, marking a 4% increase from the previous quarter, bolstered by successful projects such as the "Plum Condo New West". Meanwhile, the healthcare business witnessed a remarkable 117% growth in its Q2 2023 revenue, amounting to 440 million baht. The partnership with digital health service provider, "Nalluri", and expansions at Vimut Hospital indicate a strategic drive towards comprehensive health solutions. Furthermore, Pruksa's recognition by the Thaipat Institute in the ESG 100 securities group underscores its commitment to sustainable and socially responsible practices.

Reference: https://www.thansettakij.com/real-estate/573924

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