Property Sector Thailand Thailand Property Headlines Competitive Advantage on a Global Scale Highlight Investment: Sukhumvit Area Investment Guide Recent Development Trends Contact Services Copyright © 2014 Rosewood Properties Co., Ltd. All Rights Reserved Thailand Property Headlines According to the Global Property Guide on May 20th 2014, “[Thailand’s] Property demand has been soaring. The value of land and building transactions surged by 16.5% in 2013 to THB991.3 billion (US$30.6 billion), according to the Department of Land, Ministry of Interior.” Moreover, “Residential building licenses also by 12.8% in 2013 to 84,023 units, according to the Department of Land. Condominium registrations surged 25.1% to 102,200 units. New houses in Bangkok Metropolis, including apartments and condominiums, self-built houses, and housing projects, also increased by 5.6% to 131,954 units in 2013. All this happened while demonstrators were protesting in the streets.” Thailand Property Headlines Another source, Bangkok Post on May 22nd, 2014 says, “Despite the continuing political upheaval, Thailand's property market is expected to eke out growth, …” Yet in a recent strategic partnership in April 2014, three leading property tycoons, Magnolia Quality Development Corporation, Charoen Pokpand Group and China based Greenland Group quotes “We see enormous potential in Thailand’s luxury real estate development sector and are committed to being among the top players,” said Magnolia CEO Tipaporn Chearavanont in a press statement. Thailand and Global Property Markets In comparison to it’s ASEAN counterparts; Thailand has had a long history of an attractive property sector. As seen earlier this year in January, Property Report states, “An increasing number of Japanese real estate firms are entering the Thai market through joint ventures with local joint companies.” This is mainly due to the Competitive Advantage that Thailand has over the rest of the world. Thailand’s Competitive Advantage Relaxed ownership rules in comparison to ASEAN Low cost of living, thus land prices are still cheaper than countries with similar infrastructure and economy. GDP Growth in Recent Years Demand of second holiday homes for locals and foreigners and low investment opportunities. Easy retirement visas Tourism Boost Renowned Resort and State of Art Buildings Thailand’s Competitive Advantage Bank loans have low interest rates on housing loans which makes it easier for locals to buy residential assets and serves as a lucrative market for developers. Moreover, asset pricing will not come under pressure because banks have increased mortgage policies to accommodate the market consumption power. In an article on Property Report by Liam Bailey, Knight Frank’s global head of residential research, “the ongoing growth of global wealth will see an additional 4,500 people with at least USD30 million to invest every year, joining the ranks of the super-wealthy; and these newly wealthy individuals will want to invest some of their wealth in prime property.” Bangkok is a wide area and most of the elite locals, expats and the international community lives in Sukhumvit Area. Bangkok Metropolis: Sukhumvit/Thonglo/Ekamai Most standalone and successful plazas Most number of restaurants in any one given area Most diverse community in Bangkok density/ area Highly interconnected streets creating a very good internal access which supports other infrastructure such as BTS, MRT, Main Road, and other parallel roads. Sukhumvit/Thonglo/Ekamai Area: Highlight Investment Market: Upper Middle to Elite Locals and varied expat community from UK, USA, Japan and others. Infrastructure: Monorails (called BTS) and tube lines (called MRT) connect through this road providing easy access. Restaurants and Entertainment Industry: A lot of Thai, Italian and Japanese cuisine are popular in this area making it a hub of lifestyle entertainment. Day Life: Malls, Plazas, Luncheons; Summer feel of international community. Night Life: Clubs, Pubs, Restaurants, Malls. Investment Guide: Sukhumvit Road Chidlom, Nana, Asoke caters towards businessmen Sukhumvit 22 – Sukhumvit 33 (Phrom Phong) Sukhumvit 35 – Sukhumvit 49 Sukhumvit 51 – Sukhumvit 57 (Thonglor) Sukhumvit 59 – Sukhumvit 65 (Ekamai) Sukhumvit 67 – Sukhumvit 77 (Phra Khanong – On Nut) Investment Guide: Condominiums Condominiums: Any successful developer knows that the quickest way to get your ROI back and profits are through condominium sales. Though it can be like a fish market with fierce competition, the demand of condominiums in Sukhumvit or a piece of the prime area is always a huge demand both for rich and newly rich. Recent condominium trends include a unique concept that invests not only on the facilities but the landscape creating a lost world of its sort. Recent Development Trends Emerging trends in Sukhumvit: Malls on ground floor and condominiums or hotels on upper floors. Recent landmarks that were added to Sukhumvit Road Malls : Terminal 21 opened Plazas: in Street (called soi) 51 under construction Condominiums: Various Contact Services Legal and Property Investment Consultation Commercial Investments Business Joint Venture Opportunities Residential / Commercial Sales and Rentals