Thailand Property News Highlights September 4 - 8, 2023

Thailand Emerges as New Epicenter for Industrial Investments Amidst Geopolitical Shifts

In a nod to the changing global business landscape, Thailand has steadily positioned itself as a prime destination for both Thai and international investors seeking a robust production base. The nation's strategic infrastructure, coupled with geopolitical evolutions, has witnessed an upsurge of foreign companies transitioning from China, according to Mr. Sophon Racharaksa, CEO of Frasers Property Industrial (Thailand) Company Limited. Key areas such as Bang Phli-Bang Na and the Eastern Special Development Zone are particularly attractive for their logistics capabilities. Furthermore, FPIT, being ASEAN's premier industrial real estate developer, is at the forefront of this evolution with an expansive 3.5 million square meter property portfolio. Upholding stringent international environmental standards, the company also underscores a commitment to green building practices, aiming for 2 million square meters of green building space by 2026.

Reference: https://www.thansettakij.com/real-estate/575413

Crisis in Confidence: Ashton Asoke's Legal Tangle Impacts Bangkok's Real Estate Sentiments

The Supreme Administrative Court's recent order revoking the construction permit for the Ashton Asoke condominium project has generated palpable unease among both potential buyers and sellers in Bangkok's bustling real estate market. According to Siraprapa Raksujarit, CEO of Welltines Estates Co., Ltd., sales have stagnated, with sellers finding it increasingly challenging to find takers, while rental prices have seen a dip to entice wary tenants. Furthermore, the incident has engendered broader concerns, especially among international clients, regarding the credibility and stability of Thailand's prime real estate spots, notably those adjacent to the city's critical BTS and MRT transportation networks. This prevailing sentiment has led to a growing preference for properties located away from such hubs, signaling a possible paradigm shift in the market's priorities.

Reference: https://www.bangkokbiznews.com/property/1086900

Thailand’s Real Estate Renaissance: Luxury Condominiums Magnetize Foreign Investors

Under the stable governance of the new Thai administration, the nation's real estate sector is experiencing a renaissance, with a spotlight on luxury condominiums in the heart of the city. Leading real estate firms such as Land and House, Sansiri, AP, and Noble are responding to robust demand from affluent Thai and foreign investors by launching upscale projects, particularly in prime zones like Sukhumvit, Witthayu, and Chao Phraya River. The influx is primarily from countries including China, Russia, Myanmar, Taiwan, and Hong Kong. Ms. Athitaya Kasemlawan of CBRE Thailand underscores the city center's allure due to burgeoning Grade A office spaces and new retail ventures. With a notable rise in land prices and a limited supply of freehold properties, the luxury condo market offers lucrative opportunities for both developers and discerning investors.

Reference: https://www.bangkokbiznews.com/property/1087326

Stability Amidst Rising Construction Costs: The Thai Condominium Landscape

In the second quarter of 2023, despite new condominium supply continually entering the Thai market, demand struggles to keep pace, reflecting an uptick in unsold units at lower price points. With middle to lower-income buyers facing liquidity challenges, lenders are becoming increasingly cautious, leading to more loan rejections for these groups than their luxury counterparts. Yet, the confidence index reflects a slight 0.8% increase from the last quarter. Rising construction costs are causing a 2.2% hike in condo prices. Interestingly, investor interest is veering towards second-hand condos situated along electric train lines, boosted by the growing availability of bank-seized properties or NPLs. As the year progresses, while the influx of foreign visitors remains tourism-centric, their buying interest may bolster suburban areas, particularly those aligned with transportation arteries.

Reference: https://www.bangkokbiznews.com/property/1087532

Navigating Foreign Real Estate Investments: Thailand’s Roadmap for Economic Growth

In a bid to invigorate the Thai economy, top land developer Srettha Thavisin urges the government to open real estate sales to foreign investors. Recent data shows that of the approximately 220,000 housing units sold in 2023, foreigners purchased 6%, primarily from China. Despite the seeming influx, foreign ownership remains at a mere 3.9% of total annual transactions. The article outlines a comprehensive strategy for managing foreign investments, taking cues from international practices. These measures include setting a minimum purchase price, ensuring that foreigners buy only new properties, imposing purchase and profit taxes, and implementing stringent visa requirements for property owners. The overarching goal: to maximize national revenue while ensuring a fair real estate ecosystem for Thai citizens.

Reference: https://www.bangkokbiznews.com/property/1087535

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