Property development in Thailand looks bright next year: Special report

[webfact]

Special Report: property development in Thailand looks bright next year

BANGKOK: -- Thailand leading property developer AP is confident that the overall outlook of the property development looks promising this year and the next.

According to AP Chief Marketing Officer Vittakarn Chandavimol,the local economy continues to recover alongside the many economic stimulus measures from the government. There have been positive signs for the industrial estate market since the army seized power in May 2014 and the government’s clarification of the electric train development project signals that business will be booming.

The property market is growing again after the average take-up rate in the second quarter was the highest of the past few quarters. The take-up rate in the City area is the highest, followed by the Suburban Bangkok and Outer City West areas. The condominium market, especially, is experiencing a boom from rising demand in areas along the BTS extension route from Sathorn across the Chaophraya river to Thonburi.

Mr Vittakarn said that the extension of the electric train line into the suburban areas helps spur more property development projects on the outskirts of Bangkok. However, demand for condominium and houses in the city is still robust as more mature clients are willing to pay more to live in the business districts. Younger clients on the other hand tend to look for property along the skytrain and MRT lines outside of Bangkok.

AP has established a joint venture agreement with Mitsubishi Estate Group, one of Japan's largest developers, which so far included four development projects. The fourth project, which is located next to Talat Phlu BTS station is expected to be worth 3.3 billion baht. The project marks a new milestone in a partnership that has brought about Japanese-style architecture and common area features with insights into Thais’ living habits.

Mr Vittakarn added that rising land prices mean that any new condominium development will be more expensive than past projects. This will likely push up prices in the best completed buildings.


-- NNT 2014-10-23

[Costas2008]

"Mr Vittakarn added that rising land prices mean that any new condominium development will be more expensive than past projects. This will likely push up prices in the best completed buildings."

As I'm not convinced that the property market is flourishing in Thailand, I believe that the developers are following the usual Thai pattern.

If it doesn't sell........raise the prices.

[ToddinChonburi]

The word is that the Chinese are starting to invest here so maybe that is the thinking. I just think with so many empty condos that something has to give.

[Commerce]

"This will likely push up prices in the best completed buildings."

Raises a few questions, doesn't it? What about the non-best completed - Phatumtani being one example, where a whole student complex collapsed recently, killing and maiming 'cheap' employees from Myanmar and Cambodia, without a care in the world.

Then again, what's the world mean to Thais?

Property 'development' is not an operative Thai word; what they refer to is throw it up, cover it with a facade to make it look amazing, and forget what it's actually constructed with.

[Pib]

To property developers and real estate agents "next year" is always going to be better...prices will rise---everyone better buy now!!!

[WhizBang]

This will likely push up prices in the best completed buildings.

Or, in other words, we have a lot of expensive Hi-So buildings for the Privileged few, that are going to cost you as much as we can squeeze out of you.

Edited October 23, 2014 by WhizBang

[Thai at Heart]

I love it.

Condo construction is considered an economic stimulus.

Strewth, what can be left to stimulate.

[trogers]

Trying to talk up the market?

The evidence on the streets are the large empty billboards that used to promote these property developments.

[marcusd]

These people are smoking and taking YAA BAA I am certain of it. Heightened degree of euphoria for sure!

Do they count SALES or NEW CONSTRUCTION as their measure fro brightened prospects? The areas Sathorn etc are way over developed with Whole buildings that have been sitting there for years and that is what I know and have seen and I only visit Bangkok. I have viewed properties for sale 4 years ago and the same buildings are still EMPTY or have less than 10% occupancy and that is several in Sathorn that I personally know of. get in a car or taxi and go along the routes they mention at NIGHT. NO LIGHTS on in many buildings with many floors BLACK.

Are they trying to fool themselves? I could be rude but they are pulling more than strings here.

[marcusd]

"This will likely push up prices in the best completed buildings."

Raises a few questions, doesn't it? What about the non-best completed - Phatumtani being one example, where a whole student complex collapsed recently, killing and maiming 'cheap' employees from Myanmar and Cambodia, without a care in the world.

Then again, what's the world mean to Thais?

Property 'development' is not an operative Thai word; what they refer to is throw it up, cover it with a facade to make it look amazing, and forget what it's actually constructed with.

They are property DEVIL Lopers

[ldnguy]

These people are smoking and taking YAA BAA I am certain of it. Heightened degree of euphoria for sure!

Do they count SALES or NEW CONSTRUCTION as their measure fro brightened prospects? The areas Sathorn etc are way over developed with Whole buildings that have been sitting there for years and that is what I know and have seen and I only visit Bangkok. I have viewed properties for sale 4 years ago and the same buildings are still EMPTY or have less than 10% occupancy and that is several in Sathorn that I personally know of. get in a car or taxi and go along the routes they mention at NIGHT. NO LIGHTS on in many buildings with many floors BLACK.

Are they trying to fool themselves? I could be rude but they are pulling more than strings here.

Which buildings are you referring to? I've haven't seen any buildings with such a low occupancy rate. Let me know and I'll go take a look.

[ldnguy]

This will likely push up prices in the best completed buildings.

Or, in other words, we have a lot of expensive Hi-So buildings for the Privileged few, that are going to cost you as much as we can squeeze out of you.

That's the same all over the world and even with private individuals. Everyone wants to get the best price for their property. There's nothing at all wrong with that. What would you do if you were selling a property? Mark down the price as low as possible?

[marcusd]

These people are smoking and taking YAA BAA I am certain of it. Heightened degree of euphoria for sure!

Do they count SALES or NEW CONSTRUCTION as their measure fro brightened prospects? The areas Sathorn etc are way over developed with Whole buildings that have been sitting there for years and that is what I know and have seen and I only visit Bangkok. I have viewed properties for sale 4 years ago and the same buildings are still EMPTY or have less than 10% occupancy and that is several in Sathorn that I personally know of. get in a car or taxi and go along the routes they mention at NIGHT. NO LIGHTS on in many buildings with many floors BLACK.

Are they trying to fool themselves? I could be rude but they are pulling more than strings here.

Which buildings are you referring to? I've haven't seen any buildings with such a low occupancy rate. Let me know and I'll go take a look.

I do not know the exact names but go and drive on the freeway that circles down near Surasak and there are about 6 BLUISH buildings. They are but ONE example I can give you

[somo]

The rich in Thailand are so greedy and refuse to allow any redistrubution of wealth that there are only about 2000 of them with enough money to buy the properties they are building.

If foreigners (who are not allowed to own land or houses) don't buy they will struggle to sell anything except to each other. With the help of the banks (which they own) they will keep the plates spinning for a while yet but at some point there will be a lot of broken china.

[Prbkk]

Trying to talk up the market?

The evidence on the streets are the large empty billboards that used to promote these property developments.

It will be interesting to see the take-up rate of the under construction development at Ploenchit and the soon to commence 40 plus story building at Nana BTS. They will be expensive condos but the size of individual units keeps getting smaller and smaller. 20 years ago 150SQM was pretty standard, then 120, 90, 75. Now it's about 35 SQM.

[shirtless]

I would say they are optimistic, there are just so many developments and only so many buyers,

[MILT]

....as the bubble is getting bigger. Rumor has it that ReMax International is looking at ChiangMai.

Thailand's landscape is going to look very different in the next few years. "Money for nothing and the chicks for free"

[retsdon]

The road goes on forever and the party never ends - as the song says.

[useronthenet]

I think the property market is extremely subdued, given the laws for foreigners that intend to purchase property in Thailand can be a very risky affair.

Bottom line, if you can't put the land in your name, not worth the investment ! I don't know about you, but I worked hard for my money, and I intend to keep it.

No doubt some property agent will find some foreign mug that doesn't know the rules, and run some bullshit story on how safe the property is, but I have read so many sob-stories that I have lost count. Foreigners conned in parting with their investment, or some Thai sweetheart got the foreigner to convince that everything is ok, (usual story), and looses everything except the shirt on his back, and sent home packing. My advise is to rent, don't buy. No commitment, and at a moments notice if things really kick-off the you can leave for greener pastures.

[MILT]

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I think the property market is extremely subdued, given the laws for foreigners that intend to purchase property in Thailand can be a very risky affair.

Bottom line, if you can't put the land in your name, not worth the investment ! I don't know about you, but I worked hard for my money, and I intend to keep it.

No doubt some property agent will find some foreign mug that doesn't know the rules, and run some bullshit story on how safe the property is, but I have read so many sob-stories that I have lost count. Foreigners conned in parting with their investment, or some Thai sweetheart got the foreigner to convince that everything is ok, (usual story), and looses everything except the shirt on his back, and sent home packing. My advise is to rent, don't buy. No commitment, and at a moments notice if things really kick-off the you can leave for greener pastures.

2015 will be a different story for the Asean members and for Australians and Americans. Will have to wait and see what the rules will be for property investment and development in Thailand. This is why companies like ReMax are bubbling up for the bubble......

[TheCruncher]

I think the property market is extremely subdued, given the laws for foreigners that intend to purchase property in Thailand can be a very risky affair.

Bottom line, if you can't put the land in your name, not worth the investment ! I don't know about you, but I worked hard for my money, and I intend to keep it.

No doubt some property agent will find some foreign mug that doesn't know the rules, and run some bullshit story on how safe the property is, but I have read so many sob-stories that I have lost count. Foreigners conned in parting with their investment, or some Thai sweetheart got the foreigner to convince that everything is ok, (usual story), and looses everything except the shirt on his back, and sent home packing. My advise is to rent, don't buy. No commitment, and at a moments notice if things really kick-off the you can leave for greener pastures.

That is also the reason why land prices in rural areas have almost doubled in the past 2 years. The Thais know that with Asean it will be easier for neighboring countries to enter Thailand, and they think that will result in increased land purchases.

Most of them are not aware that, even when Asean is in full swing, foreigners still can't own land.

I notice the same when I currently experience high land prices in areas where there is no electricity within 1 km. The owners tell me that I can ask the government to extend the powerlines, and they think it just a case of asking and all will be free.

[Krataiboy]

In the words of the bright and beautiful Mandy Rice-Davies, well - they would say that, wouldn't they?

Seriously, folks, do you really expect a leading property developer to come clean and tell you the real estate market is a bubble waiting to burst (which it is)?

I wonder how much advertising revenue the Bangkok Post and other Thai newspapers rake in from property companies? Not that this, of course, in any way affects their editorial independence. . .

[northernjohn]

This will likely push up prices in the best completed buildings.

Or, in other words, we have a lot of expensive Hi-So buildings for the Privileged few, that are going to cost you as much as we can squeeze out of you.

That's the same all over the world and even with private individuals. Everyone wants to get the best price for their property. There's nothing at all wrong with that. What would you do if you were selling a property? Mark down the price as low as possible?

Depends if you want to sell it or hang on to it for years. If it isn't selling mark it down. The biggest problem with the construction of homes and condos in Thailand is that they have no property tax on them. So people are willing to hang on to them waiting for the highest price they can get. Even though it takes years.

I think the WhizBang was alluding to the fact that nothing nice for the people with out the big bucks can afford is not being built. I could be wrong.

[Showbags]

Those big towers the end of soi 18....are they still empty ?

[surfinglife]

Development? Is that what they call this corruption-driven effort to cover every remaining green rai in Pattaya with concrete? A few short years ago I had exotic birds flying outside my balcony on Pratumnak Hill, now all I see is cranes and multi-storey monstrosities unfinished for years. Development? Really?

[CapGary]

Yes I wholeheartedly agree, utter tosh this talk of up and coming booming market. Sales, even with the rose tinted specs that most agents wear, are at best flat and given the lack of confidence in the current political situation, I can't imagine it getting better any time soon.

My advice, for what it's worth, stay away from the sharks! Rent.

[Benmart]

Development? Is that what they call this corruption-driven effort to cover every remaining green rai in Pattaya with concrete? A few short years ago I had exotic birds flying outside my balcony on Pratumnak Hill, now all I see is cranes and multi-storey monstrosities unfinished for years. Development? Really?

That's sure true. I'm fortunate to live on Thrappaya Road, at the bottom of the Pattaya side of Pratumnak.

The tree outside my condo has plenty of birds that sing all the time. Sorry to hear yours are gone.

The overbuilding is sad to see for sure and I fear dark clouds are on the horizon such as Thailand experienced in 1997.

[trogers]

Trying to talk up the market?

The evidence on the streets are the large empty billboards that used to promote these property developments.

It will be interesting to see the take-up rate of the under construction development at Ploenchit and the soon to commence 40 plus story building at Nana BTS. They will be expensive condos but the size of individual units keeps getting smaller and smaller. 20 years ago 150SQM was pretty standard, then 120, 90, 75. Now it's about 35 SQM.

One such developer in Ploenchit has been actively promoting his starting price of Bt 9m right here in the pages of TV. Must be selling like hotcakes, in the streets of Bagdad.

[trogers]

Those big towers the end of soi 18....are they still empty ?

You mean the one with silhouette of 4 vultures?

[hansgruber]

Typical property developer optimism. It's not like he is going to reveal the truth because to them its always the time to buy buy buy markets going great blah blah.

Bank managers breathing down their necks.

I suspect some more derelict skyscrapers coming soon.