Weekly Thailand Property News July 17-21, 2023

Prince of Songkla University Leads the Charge in Transforming Phuket into a Global Health City

As Thailand's tourism sector swells to an anticipated 28 million visitors in 2023, spearheaded by Chinese travelers. Phuket is uniquely positioned to capitalize on this influx. With its sterling reputation in public health, the city is slated to become a global health destination by 2028. The ambitious Andaman International Health Center project, directed by the Prince of Songkla University, is set to bolster Phuket's healthcare capacities. However, the project, estimated to cost approximately 20 billion baht, faces significant challenges including the construction of the 500-bed Songkhla Nakarin Hospital. Addressing these challenges while maintaining a sustainable balance between booming tourism and healthcare provision will be critical for Phuket's transformation into a world-class health tourism city.

Reference: https://mgronline.com/stockmarket/detail/9660000031998

Post-Election Uncertainty Casts Shadows on Thailand's Real Estate Market

The aftermath of the recent election has seen a surge in housing demand, indicating buyer confidence in the long-term prospects. However, elections tend to create an atmosphere of economic volatility, with potential policy changes impacting tax rates and government agency directives. As uncertainty looms, high-end buyers adopt a cautious "wait and see" stance, leading to a significant decrease in real estate purchases. The market eagerly awaits the appointment of the 30th prime minister, hoping for a revival based on stable macroeconomic trends. Yet, until clarity emerges, real estate remains caught in limbo, with the new government's policy direction and the global economic recovery influencing consumer behavior in the coming months.

Reference: https://www.bangkokbiznews.com/property/1078964

Bangkok's Second-Hand Real Estate Market Surges Amidst Economic Uncertainty and Increased Foreign Demand

Anchana Wallipakorn, CEO of Bania (Thailand) Co., Ltd., reveals a significant rise in listings for sale in Bangkok's second-hand real estate market, particularly in districts like Huai Khwang, Wattana, Chatuchak, Khlong Toei, and Ratchathewi. The increase in supply is attributed to signs of economic recovery and the impact of the May election, prompting consumers to release more condos into the market. The demand for second-hand properties is on the rise, fueled by both domestic and foreign buyers seeking more affordable options amidst the soaring costs of new developments. Foreign purchasers, in particular, are eyeing central locations and major tourist destinations, leading to a surge in demand in areas like Silom, Sukhumvit, Ratchada, and Rama 9. However, the real estate market also faces challenges with rising household debt, non-performing loans, and foreclosures.

Reference: https://www.bangkokbiznews.com/property/1079017

ASW Targets Phuket's Real Estate Boom with Strategic Investments and Foreign Demand

ASW, a prominent Thai real estate company, plans to seize opportunities in Phuket's booming market by focusing on three prime locations (Patong, Kata, and Karon) and enticing foreign investors. The company's collaboration with Takara Leben, a major Japanese real estate firm, and the recent acquisition of shares in Rompho Plc. demonstrate its ambitious growth strategy. Phuket's unique appeal to a diverse population, including Russians, Chinese, Indians, and Europeans, makes it a hotbed for foreign investment. As tourism recovers, foreigners are increasingly buying villas and condominiums near the sea. However, soaring land prices and stringent regulations pose challenges. Despite this, ASW is determined to develop nine exciting projects in the area, targeting an income of 10,000 million baht within three years.

Reference: https://www.thansettakij.com/real-estate/571091

Reviving House-Condo Market Sparks Intense Contractor Competition!

The low-rise real estate market's rapid growth and expanding investments have triggered a scramble for contractors and construction workers to meet the rising demand. However, the severe shortage of contractors is leading to delays in-home delivery, impacting the industry's revival. Real estate project developers are struggling to find skilled labor, as many large contractors have shifted focus to infrastructure and condo projects during the economic upswing. This shortage has forced some developers to attract contractors from other regions, further exacerbating the competition for skilled workers. To address the issue, industry players are exploring solutions such as finding new contractors and improving the efficiency of existing ones while ensuring fair labor wages that do not disrupt project costs and selling prices.

Reference: https://www.bangkokbiznews.com/property/1079450

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