Thailand’s Booming Real Estate Sector Draws New Players
The current trend in the Thai property market is attracting a lot of attention from businesses and industries outside property. Colliers International Thailand’s senior manager for sales and marketing Monchai Orawongpaisan reported that over half of those coming in as new developers, which are launching new projects, were from sectors like garments, machinery, and jewelry. The projects they are launching are meant to be completed by 2015 in time for the ASEAN economic integration which is set in 2016. Colliers has noted a significant rise in the number of projects being launched.
In 2011, the company had signed seven projects amounting to 4 billion baht. In the last quarter of 2012 up to the first few months of 2013, the property consultant has already signed for 10 contracts that are worth a total of 8.5 billion Thai baht. This indicates how robust the market has been in the recent months. The projects of Colliers include the Navatanee project along Bangkok’s Seri Thai Road. The project consists of 30 houses with an average price of 40 to 50 million baht. The project is said to be worth 1.5 billion baht. Another project which Colliers represent is that of Celeste Hua Hin condo project. This project which is being built by Khao Tao Bayview Resort is reported to have a combined price tag of 1.4 billion baht. Colliers also signed in a 1-billion baht project for Orion Condo Pattaya; it is under one of those new developers that have ventured into the property development industry. Meanwhile, it is currently discussing future partnerships with Atjosira Property, a new-comer in the industry which intends to develop a project of luxury single houses located in Si Racha. This developer owns over 2,000 rai of land in that area.
Aside from these, Colliers is planning to embark on a project that is of London-type this 2013. Its reach also extends to some 12 similar ventures in Myanmar. After experiencing record revenue of 200 million baht last year, which represents a 40-percent increase from 2011, the company is eyeing for a growth of 30 to 40 percent in 2013. Based on Colliers’ research, the property market boom is also expected to boost property prices as well as rents in office and retail spaces by 5 to 10 percent this year. Because of this, condo units which are priced below 3 million baht will gain greater demand.
While the property consultant does not see any sign of oversupply yet, there may be some areas where the sales may become slow due to some excess in supply in those particular areas. Among the projects that are under Colliers, only one is expected to be completed this year. This is the Nine Tower, a 55,000-square meter office building, located along Ratchadaphisek Road.
As the growth continues, more multinational companies come in and become part of the property sector; most of them come from the automotive industry. They are already establishing their offices in Bangkok. All of these are trying to get a slice of the opportunities this booming industry offers today and in the future.