Weekly Thailand Property News August 7 - 11, 2023

Ashton Asoke Residents Seek Legal Redress Over Revoked Building Permits

Residents of the luxury condominium project Ashton Asoke in Bangkok approached the Office of the Consumer Protection Board (OCPB) with complaints following the revocation of building construction permits by the Supreme Administrative Court. 20 victims are seeking legal solutions from the company. If not provided, victims of Ashton Asoke demand a contract termination with full refund and interest. The current filed complaints total a value of 69,605,275 million baht, with more potential victims expected to come forward. Ananda Development Public Company Limited, responsible for the project, is considering urgent solutions, with an announcement expected on August 23. Five possible approaches have been proposed, including applying for a new building permit, amending relevant laws, and submitting a petition for a new trial.

Reference: https://www.thansettakij.com/real-estate/573047

Bangkok Authorities to Review High-Rise Building Permit Guidelines Following Ashton Asoke Project Issues

August 7, 2023, Mr. Chatchart Sittipunt, the Governor of Bangkok led a meeting with the Bangkok Executive Committee to discuss the progress of the Ashton Asoke project. In Bangkok, the Department of Public Works has concluded a meeting with the decision to establish a committee to enhance the regulations for granting construction permits for high-rise and extra-large buildings. They will review all existing data and processes, and orders will be issued accordingly. In connection to the Ashton Asoke case, the district office is in the process of issuing an order to apply for a new construction permit under Section 41. The Governor also spoke about potential corruption in the construction permit process, promising to take action if evidence is found. He talked about encouraging online construction permits and shared updates on Bangkok's city planning, emphasizing a clear and step-by-step approach to development.

Reference: https://www.thansettakij.com/real-estate/572808

Rise in Pet Ownership Fuels Growth in Thailand 'Pet Residences': A New Frontier in Real Estate Development

Thailand has seen a growing trend in pet ownership, with the number of households having pets increasing from 1.3 million in 2017 to 1.45 million in 2021. In contrast to the declining birth rates. Real estate developers are seizing a new market opportunity by focusing on 'Pet Residences.' These pet-friendly condominiums cater to both humans and pets, featuring specialized zones and amenities. Major players in this niche include Origin Camp's projects, Whizdom Project, The Forestias, and The Estelle Phrom Phong. Petchlada Poolvoralaks, CEO of Major Development Public Company Limited, highlighted the significant expansion in the pet business market, predicting an annual growth rate of 7.2% globally and 8.4% in Thailand, reaching 66,748 million baht by 2026. A survey by the College of Management, Mahidol University, revealed that 80.7% of pet owners were single, reinforcing the therapeutic benefits of pet ownership. Industry evolution towards a 'LifeScape Developer' approach integrates a lifestyle with pet-friendly designs and amenities.

Reference: https://www.bangkokbiznews.com/property/1082762

Sluggish Buying Power Prompts Real Estate Industry to Pivot: Luxury Home Projects in Emerging Markets Gain Traction

In the first half of 2023, the real estate market in Thailand faced sluggish buying power attributed to negative export trends, mounting household debt at 90.6%, increased interest rates, and political uncertainties. Consequently, real estate entrepreneurs are deferring new projects, particularly condominiums. To counter these challenges, developers are diversifying into luxury home projects known as 'Low Rejects' that cater to buyers' demands for ready-to-move-in properties. They are focusing on emerging markets like the Eastern Economic Corridor (EEC) and tourist areas such as Phuket to stimulate sales and diversify revenue streams. While the market witnessed 179 project launches in H1 2022, comprising 24,167 units valued at 68,561 million baht, these figures have seen a decline of 6.2%, 21%, and 12% respectively compared to the previous year. Despite these challenges, experts anticipate that the real estate market in 2023 could grow around 5%, much lower than the previously forecasted 10-15%.

Reference: https://www.bangkokbiznews.com/property/1082337

Real Estate Market Grapples with Economic Uncertainty, Shifting Purchase Trends Towards Living Needs

Amid economic uncertainties and political instability, the real estate market faces challenges as potential buyers cautiously approach purchasing decisions. Phumiphat Sinacharoen, CEO of Proud Real Estate Public Company Limited, notes that while purchasing power remains, buyers are taking more time to study information and monitor the political and economic landscape. Decision-making has become more deliberate, emphasizing a wait-and-see approach. The trend is particularly noticeable in luxury projects, where the decision-making process has extended from a few months to multiple visits. Buyers predominantly seek homes for living purposes rather than investment, creating a more stable ownership transition. Proud Real Estate is focusing on targeted marketing strategies, including expanding into international markets such as Myanmar. The company's recent Rom Convent project has garnered substantial sales, with attention from affluent Burmese buyers. For the first half of 2023, Proud Real Estate reported notable revenue growth and improved profitability compared to the previous year. The company remains committed to expanding its business and enhancing its project offerings to cater to diverse customer needs.

Reference: https://www.bangkokbiznews.com/property/1082983

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