Thailand Property News Highlights September 11 - 15, 2023

Central Pattana Bolsters Investment in Phuket's Blossoming Condo Market Amid Tourism Revival

In light of Phuket's robust post-COVID tourism recovery, major real estate developers, including Central Pattana, are significantly expanding their investment footprints on the island. Prior to the pandemic, Phuket accounted for a considerable portion of Thailand's GDP, with tourism contributing a substantial 90%. Despite initial setbacks, a resurgence in tourism, bolstered by accommodating government policies and the anticipated 100% recovery by 2024, has rejuvenated the island's economic prospects. Kree Dechai, President of Residential Business at Central Pattana, highlights the dual nature of the condo market catering to both affluent locals and the growing expatriate community. With a phased investment of 5,000 million baht over five years, Central Pattana's ambitious residential projects underscore the confidence in Phuket's long-term appeal and profitability.

Reference: https://www.bangkokbiznews.com/property/1088108

Chiang Mai Real Estate Market Adapts Amid Economic Challenges

Chiang Mai's real estate market faces pressing challenges as household debt rises and purchasing power wanes. Even as the northern region's GDP growth slows, sectors such as tourism, industry, and construction show promise. The expansion of local infrastructure, including the airport, is geared to cater to an increasing number of immigrants and tourists. However, high interest rates, political uncertainty, and strict foreign controls, particularly from China, are curtailing investments. Local real estate experts urge developers to be innovative in product offerings, highlighting the potential of semi-detached housing to meet the preferences of the new generation. As the Thai government considers policy changes to bolster the sector, the overarching sentiment remains cautiously optimistic about a market recovery post-Covid in the coming years.

Reference: https://www.bangkokbiznews.com/property/1088322

Real Estate in Northeastern Thailand Faces Challenges Amidst Shrinking Purchasing Power

The real estate sector in Isaan, encompassing five northeastern provinces, confronts formidable challenges as the Real Estate Information Center (REIC) reveals an increase of 22.8% in unsold housing units in the first half of 2023. With rising interest rates and a stringent loan approval process, household debts have surged, causing a dampening in purchasing power. Although once seen as economical alternatives, the cost of semi-detached houses has risen due to increased land costs, making them less attractive to buyers. Notably, the housing market in Udon Thani and Korat differs: Udon Thani leans on the struggling tourism sector, while Korat's more stable environment is buffered by a robust infrastructure. Leaders in the sector express hope in government intervention, underlining the sector's significant economic impact.

Reference: https://www.bangkokbiznews.com/property/1088507

Machine Learning: The Future of Real Estate Decision-Making

Machine Learning (ML), a facet of Artificial Intelligence (AI), is revolutionizing the real estate sector, a significant contributor to national GDP. As real estate decisions necessitate a confluence of varied expertise – from marketing to engineering – ML streamlines this decision-making process by analyzing vast amounts of complex data swiftly. Two models illustrate its efficacy: The first, utilizing Artificial Neural Network (ANN) techniques, enhances the accuracy of project sales rate forecasts by analyzing factors such as price, Functionality, and Location. The second, employing a Classifier Ensemble technique combining Decision Tree and gradient-boosted tree methods, aids in determining the optimal type of real estate project for a specific land parcel. As technology galvanizes the business world, real estate professionals are poised to reap the benefits ML offers in bolstering efficiency and precision.

Reference: https://www.bangkokbiznews.com/property/1088762

Settha Thaweesin: The Prime Minister with a Proven Track Record in Real Estate Management

Settha Thaweesin, Thailand's Prime Minister and former Sansiri CEO, is known for his decisive and innovative leadership style. Drawing on his successful real estate management background, he implemented a "Speed to Market" strategy at Sansiri, making quick decisions and embracing change. This approach not only helped Sansiri thrive but also created a workplace culture that attracts the new generation.

Settha's ability to think on his feet and his commitment to problem-solving are assets in his political role. His economic background and experience in handling various crises during his time at Sansiri make him well-suited for the position of Minister of Finance. Settha's emphasis on stakeholder importance and balanced decision-making extends from the business world to politics, showcasing his adaptability and commitment to progress.

Reference: https://www.bangkokbiznews.com/property/1088752

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