Asean Economic Community will give Thai property boost
The Thai property market is likely to receive a boost from the Asean Economic Community in 2015, according to research from Colliers International Thailand. When the union comes into effect, the economics of the country will be strengthened, making Thailand an attractive prospect for investors. Currently, the domestic political situation is seen as the only major internal factor affecting the economy and development of the country, The Nation reported.
Investors are now hoping to find a soft solution to internal troubles that will be acceptable to all those involved, Colliers explained. Associate director for the firm's research department, Surachet Kongcheep, told the news provider that there will still be growth, especially in Bangkok and surrounding provinces. These will continue to expand, as the area is seen as an investment and operational hub for most businesses.
However, there are many border provinces in Thailand that could become new investment destinations for Thai and foreign investors, according to Colliers. These sites are located not too far from special economic zones of neighbouring countries. Chiang Mai, Khon Kaen, Udon Thani, Nakhon Ratchasima, Ubon Ratchathani, Chon Buri, Rayong, Phetchaburi, Prachuap Kiri Khan, Nakhon Sri Thammarat and Songkhla are all first-tier cities that will also keep growing, The Nation revealed.
Nevertheless, there could be concerns that a rise in investor activity will accelerate a property bubble, with prices already rising strongly in the residential sector. Yet Plus Property claims there is no threat of a crash. The real estate services provider and consultant states there is no sign of economic interference in the industry and demand for real estate is organic and not the result of property flipping. Lifestyle changes among the population have been seen as a big stimulus for the market, with more domestic buyers entering the fray as Thais move away from rentals.
Condominiums are likely to be among the most popular properties, with ready-to-move condos seeing a 21 per cent jump in demand. "With continuous supply coming onto the market, the condominium market will become even more complicated and competitive," the CBRE wrote.
Investors are now hoping to find a soft solution to internal troubles that will be acceptable to all those involved, Colliers explained. Associate director for the firm's research department, Surachet Kongcheep, told the news provider that there will still be growth, especially in Bangkok and surrounding provinces. These will continue to expand, as the area is seen as an investment and operational hub for most businesses.
However, there are many border provinces in Thailand that could become new investment destinations for Thai and foreign investors, according to Colliers. These sites are located not too far from special economic zones of neighbouring countries. Chiang Mai, Khon Kaen, Udon Thani, Nakhon Ratchasima, Ubon Ratchathani, Chon Buri, Rayong, Phetchaburi, Prachuap Kiri Khan, Nakhon Sri Thammarat and Songkhla are all first-tier cities that will also keep growing, The Nation revealed.
Nevertheless, there could be concerns that a rise in investor activity will accelerate a property bubble, with prices already rising strongly in the residential sector. Yet Plus Property claims there is no threat of a crash. The real estate services provider and consultant states there is no sign of economic interference in the industry and demand for real estate is organic and not the result of property flipping. Lifestyle changes among the population have been seen as a big stimulus for the market, with more domestic buyers entering the fray as Thais move away from rentals.
Condominiums are likely to be among the most popular properties, with ready-to-move condos seeing a 21 per cent jump in demand. "With continuous supply coming onto the market, the condominium market will become even more complicated and competitive," the CBRE wrote.
PUBLISHED : 24TH DECEMBER 2013
