ตลาดคอนโดยังคงสดใสและแข็งแกร่ง แม้จะมีสัญญาณเตือนภัยให้เห็นอยู่รำไร

รายงานฉบับล่าสุดของคอลลิเออร์ส อินเตอร์เนชั่นแนล ประเทศไทย(Colliers International Thailand) เผยให้เห็นว่า ตลาดคอนโดมิเนียมในกรุงเทพฯ ในไตรมาสที่ 2 ของปี 2554 ยังคงสดใสต่อเนื่องจากการรุกทำกิจกรรมในช่วงครึ่งหลังของปี 2553 ในไตรมาสที่สองนี้ มีอาคารชุดประมาณ 11,900 ยูนิต เปิดตัวสู่ตลาดซึ่งเพิ่มขึ้น 9.6% จากไตรมาสก่อน ยูนิตที่เปิดตัวใหม่บริเวณใจกลางกรุงเทพฯและชานเมืองกรุงเทพฯมีจำนวนใกล้เคียงกัน และเป้าหมายคือกลุ่มตลาดราคาย่อมเยาและใกล้เส้นทางขนส่งมวลชน

ข่าวเด่นประจำไตรมาสได้แก่การเปิดตัวโนเบิล เพลินจิตขนาด 1,442 ยูนิต เพียงวันแรกก็ทำยอดขายได้ถึงประมาณ 700 ยูนิต นายปฏิมา จีระแพทย์ กรรมการผู้จัดการบริษัทคอลลิเออร์สฯ ประเทศไทย เชื่อว่าอนาคตของกรุงเทพฯมีแววสดใสรุ่งโรจน์ “ความสำเร็จอันงดงามในการเปิดตัวโครงการทั้งๆ ที่เป็นช่วงเลือกตั้งซึ่งมีความผันผวนสูงนั้น แสดงให้เห็นว่าคนไทยไม่ได้หวั่นวิตกมากนัก” นายปฏิมาตั้งข้อสังเกตว่าขนาดห้องซึ่งค่อนข้างเล็กและส่วนใหญ่เป็นห้องประเภทหนึ่งห้องนอนนั้น แสดงให้เห็นว่าแม้แต่โครงการระดับบนยังคำนึงถึงกำลังซื้อ และยังกล่าวเสริมด้วยว่า “บริษัทผู้พัฒนาโครงการสำหรับลูกค้าทุกกลุ่มลดขนาดห้องชุดลงเพื่อดึงดูดอุปสงค์ของผู้ที่มีแนวโน้มว่าจะซื้อเพิ่มขึ้น” นายปฏิมาพอใจที่โนเบิล เพลินจิตและโครงการศูนย์การค้าเซ็นทรัล เอ็มบาสซีซึ่งอยู่ในระหว่างก่อสร้างจะเติมช่องว่างระหว่างชิดลมถึงต้นถนนสุขุมวิท “ฝั่งตะวันออกของเพลินจิตค่อนข้างจะร้างมาสักพักแล้ว” นายปฏิมาอธิบาย
ลุมพินี วิลล์ พัฒนาการ – เพชรบุรีตัดใหม่ของแอลพีเอ็น ดีเวลล็อปเมนท์ เป็นอีกหนึ่งโครงการที่ประสบความสำเร็จในการเปิดตัวในไตรมาสที่ 2 ยอดจองในช่วงเปิดตัวอยู่ที่ 70% จาก 1,605 ยูนิต ฝั่งใต้เองก็ไม่น้อยหน้า ยอดจองช่วงเปิดตัวพรีมา พระราม 3 – นราธิวาส ของศุภาลัยอยู่ที่ 80% โดยราคาขายเริ่มต้นที่ 56,000 บาท ต่อ ตร.ม. ระบบขนส่งมวลชนยังคงเป็นปัจจัยสำคัญในตลาด โดยโครงการในระยะ 200 เมตร จากสถานีนั้น ตั้งราคาขายได้สูงกว่าและมียอดจองมากกว่าโครงการที่อยู่ห่างออกไป

แม้ว่าคอลลิเออร์สฯยังคงเชื่อมั่นว่า ตลาดคอนโดมิเนียมจะยังคงเติบโตอย่างต่อเนื่อง แต่นายแอนโทนี พิคอน ผู้ช่วยผู้อำนวยการฝ่ายวิจัยของคอลลิเออร์สฯได้กล่าวเตือนว่า “เนื่องจากยังมีอีกหลายโครงการที่อยู่ในระหว่างก่อสร้าง และอัตราค่าแรงขั้นต่ำที่มีแนวโน้มพุ่งสูงขึ้นอาจส่งผลให้ต้นทุนการก่อสร้างในอนาคตเพิ่มขึ้น” นายพิคอนเตือน แรงกดดันจากเงินเฟ้อที่เพิ่มมากขึ้นส่งผลให้อัตราดอกเบี้ยเพิ่มสูงขึ้นไปอีก ซึ่งนายพิคอนกังวลว่าดอกเบี้ยสูงจะเป็นผลร้ายต่อผู้กู้ “ถ้าดอกเบี้ยสูงขึ้นถึงระดับหนึ่ง ผู้กู้จะชำระไม่ไหว และแม้ว่าวันนี้ยังไม่มีปัญหา แต่เศรษฐกิจที่ร้อนแรงเกินไปอาจกลายเป็นปัญหาเพราะการใช้จ่ายเกินตัว” นายพิคอนเสริม

โครงการใหม่ที่เพิ่งเปิดตัวในไตรมาสที่ 2 ของปี 2554 เพิ่มขึ้น 9.6% จากไตรมาสที่ 1 ของปี 2554 ห้องชุดประมาณ 11,900 ยูนิตจะออกสู่ตลาด ซึ่งแสดงให้เห็นว่าตลาดยังคงสดใสหลังจากครึ่งปีหลังของปี 2553 มีการเปิดตัวโครงการไปแล้วหลายโครงการ

ราคาขายเฉลี่ยสำหรับบริเวณใจกลางเมืองแตะระดับสูงสุดที่กว่า 130,000 บาทต่อ ตร.ม. ซึ่งสูงกว่าราคาขายเฉลี่ยในกรุงเทพฯถึง 45% ราคาขายเฉลี่ยในบริเวณชานเมืองฝั่งตะวันออกสูงเป็นอันดับสอง เนื่องจากบริษัทผู้พัฒนาโครงการซึ่งจดทะเบียนในตลาดหลักทรัพย์แห่งหนึ่งกำลังพัฒนาโครงการหนึ่งในย่านนี้ซึ่งราคาขายสูงกว่า 120,000 บาทต่อ ตร.ม.

http://www.colliers.co.th

Colliers expands Residential Project Sales Team

In this photo : (left) Ms.Saengsunee Sangsuwan, (2nd from left) Ms.Pitsinee Yiamrakchart, (3rd from left) Mr.Sutas Thanasiripreeda, (4th from left) Mr.Monchai Orawongpaisan, (5th from left) Dr.Patima Jeerapaet, (5th from right) Mr.Natprera Meekrordee, (4th from right) Ms.Phanida Huntprasert, (3rd from right) Ms.Supalee Sangta, (2nd from right) Ms.Piyasiri Supakul, (right) Ms.Karunya Aroonrut

Colliers International Thailand, the leading property consultants, has expanded its Residential Project Sales & Marketing department, emphasizing excellence of service and one-stop consultancy.

Following on from the successful global rebranding at the end of 2010 and the award of Best Agent – Eastern Seaboard and Best Agent – Bangkok Highly Commended at the Thailand Property Awards in 2010, Colliers are taking a big step by significantly expanding its professional residential project sales department focusing on residential projects in Bangkok and in the resorts. In 2008, Colliers International Thailand opened a branch in Pattaya which is already a great success with a plan to open more branches in Hua Hin, Phuket and Samui.

“2011 is an important milestone for us a company. Colliers International is equipped with more manpower and we are expanding our residential operation by introducing a professional sales team who are experienced and highly skilled in project sales management.” said Patima Jeerapaet, Managing Director of Colliers.

Colliers International Thailand has appointed Monchai Orawongpaisan as the Senior Manager of the Residential Project Sales Department. He has extensive experience in project sales and the company has strengthened itself with experts to provide sales and marketing services for existing residential projects as well as future developments. Colliers has been appointed as agent for five projects in Bangkok and Hua Hin this year.

“It is another success for Colliers in being appointed to manage the sale of five projects for the first half of 2011. Our sales management concept does not involve only “sales” but offers a full range of services to empower the sale by providing consultancy on the project, competition, price range, target markets and recommended marketing activity,” said Mr Patima. “We expect to expand our customer base through our valuable services and that we will be handling more project sales in Bangkok and popular tourist destinations in the coming years,” Mr. Patima added.

Mr. Patima said. “The past few years have been difficult in terms of foreign demand for properties in Thailand. However, we are receiving more responses from our International Residential Sales Department of Colliers in Hong Kong and Singapore on behalf of their clients and we feel the market reached a bottom in 2009 and is now rebounding”.

In this photo : (left) Ms.Saengsunee Sangsuwan, (2^nd from left) Ms.Pitsinee Yiamrakchart, (3^rd from left) Mr.Sutas Thanasiripreeda, (4^th from left) Mr.Monchai Orawongpaisan, (5^th from left) Dr.Patima Jeerapaet, (5^th from right) Mr.Natprera Meekrordee, (4^th from right) Ms.Phanida Huntprasert, (3^rd from right) Ms.Supalee Sangta, (2^nd from right) Ms.Piyasiri Supakul, (right) Ms.Karunya Aroonrut

Tokyo Records Highest Warehouse Rentals Globally In 2010

Asia Pacific warehouse demand is expected to take a dip due to the impact on the regional trade after the March 11 earthquake and tsunami in Japan

May 2, 2011, Bangkok – Colliers International recently released the Global Industrial Highlights – Second Half 2010, with Asia Pacific emerging yet again as the most robust region, North America registering a pick-up in leasing activity while Europe, Middle East and Africa (EMEA) reported a modest growth.

In terms of warehouse rental, Tokyo topped the world at USD 22.56 as of end 2010. This is followed by London – Heathrow, Zurich, Hong Kong and Geneva – the global top five industrial warehouse rentals.

Asia Pacific
In the second half of 2010, exports in many countries posted encouraging growth rates, with healthy economic growth in the region and exporters boosting sales both within the region and globally.  Asia Pacific continued to be the world’s most robust region.  Across most markets in Asia Pacific, warehouse rentals were steady or in upward swing.  Tokyo’s warehouse rentals were the highest at the end of 2010, followed by Hong Kong and Singapore at the 4th and 7th spot respectively.

Thailand witnessed a continued surge in industrial estate activity over the course of 2010 with an additional supply of 8,914 rai (3,523 acres) of Serviced Industrial Land Plots being added to the market.

However, with Japan’s devastating earthquake on March 2011, trade across the region will feel some effects with demand for warehouse space in the region expected to be sluggish compared to 2010. Disruptions in the supply chain have been felt in Thailand, a strong manufacturing base for Japanese companies. However over the medium and long term Thailand is expected to benefit as Japanese multinationals consider moving more production away from its own shores.

North America
Both the United States and Canadian warehouse market registered a noticeable pick-up in the second half of 2010.  Warehouse demand in the United States was concentrated in a number of port-related markets, while in Canada, most markets recorded a fairly brisk period in the second half of 2010.  Meanwhile, with a return of demand and continued drop-off in construction, vacancies in Canada and the United States decreased.

Amid signs of economic recovery in both countries, occupancy gains are expected to be sizeable in 2011 given healthy gains in manufacturing and a continued bounce-back in consumer spending.  However, rentals are expected to remain largely directionless this year.  Taking the second half of 2010 as an example, rental in United States fell 2.9% while those in Canada increased marginally by 0.2%.

EMEA
In EMEA, various markets were characterised by sluggish leasing activity and little expansion.  Warehouse rentals again kept steady in the second half of 2010, similar to the first six months in the year, although Europe is home to some of the most expensive warehouse rentals in the world.  For example, London – Heathrow, Zurich and Geneva were included in the top five most expensive warehouse rentals in the world.

London – Heathrow not only registered the most expensive warehouse rentals in EMEA, its prime industrial land prices at USD 56.82 per sq ft was the highest in the region and remained far in excess of any other markets in EMEA.

Bangkok condominium market cools down for Q1 2011

Concerns regarding an overheating condominium market supply were allayed in Q1 2011 with a fall of around 46% of new launches compared to  the previous quarter according to the latest Condominium Market Report from Colliers International Thailand.

Approximately 10,800 units were launched in Q1 2011 with slightly more coming from suburban Bangkok . The six months prior to Q1 were a frenetic time for the condominium market and Antony Picon, Associate Director of Research at Colliers believes this represented an aberration rather than a trend. “Many of the launches were tapping into the first time buyer market with small unit sizes and affordable prices and the reaction was similar to any new high profile product hitting the market  for the first time such as the ipad”, he said.  “After a while things steadied and become more sustainable and that is what we are seeing with condominiums now”, he added.

Patima Jeerapaet, Managing Director of Colliers, stated that the recent Bank of Thailand’s loan to value requirements and the steady rises in interest rates went a long way to restrain the breakneck pace of launches. “There was considerable media attention at the end of last year regarding the high number of launches and prudent action has been taken that allows the market to consolidate rather than come to a complete halt and this can only be good for the market in the long term”, Mr Patima pointed out.

Increasing land prices and construction costs are creating pricing pressures and it will be difficult for developers to pass these on the buyers, claimed Mr Picon. “Unit sizes can only be reduced by so much and already there is talk of action to limit this so any future price rises will only be possible with strong economic growth translating into higher wages”, he said.

New launches for Q1 2011 were down compared with the previous quarter by around 46%. Just under 10,800 units were launched in Q1 compared to around 20,000 in Q4 2010.

In Q1 2011, the Suburban Bangkok area trumped urban Bangkok with the higher number of units launched. Many projects in the Suburban Bangkok area contain over 600 units.

Within urban Bangkok, the Northern Fringe and Southern Fringe areas have shown the highest numbers with approximately 1,600 units or 15% of each location from the total.

New supply

 Approximately 3,500 new condominium units were completed and registered at the Department of Land in Q1 2011 and the total number of the whole of Bangkok was approximately 300,000 units, and more than 39,500 units are scheduled to be completed in 2011. The number of condominium units under construction and scheduled to be completed in 2011 is the highest since the global financial crisis in 1997.

The average selling price in the City area is the highest at more than THB 95,000 per sq m, however this is nearly 13% lower than the average selling price in 2010. This was due to less prestigious projects being launched in Q1 2011.

Bangkok remains the biggest supply of office space in ASEAN

Bangkok contains most office space compared to other ASEAN commercial cities including Singapore according to research by Colliers International throughout Asia Pacific. Tokyo contains by far the greatest amount of space in Asia as a whole with around ten times the amount as Bangkok. Patima Jeerapaet, Managing Director of Colliers in Thailand asserted that Bangkok’s strong position is a springboard for Bangkok to benefit from the ASEAN Economic Community (AEC) in 2015. “The service sector will be a key factor in the changes that will occur in 2015 and the fact that there is a significant amount of office space already and potential for more is a huge advantage for the city” he said.

Research by Colliers shows that Bangkok has around 7,900,000 square metres compared to Singapore’s just over seven million. The other cities of Manila, Jakarta and Kuala Lumpur are further behind but not by much, according to Antony Picon, Associate Director for Research at Colliers. Most of the supply in Bangkok occurred in the 1990’s. “Other cities are catching up but opening up the service sector in Thailand should lead to the next wave of office development” he pointed out. Mr Picon also explained that commercial activity in Thailand was centralized in Bangkok while in other countries it was more dispersed. “In Philippines there is a large office market in Cebu, Indonesia has Surabaya, Malaysia has Penang and Vietnam has an additional office market in Hanoi and Danang; in Thailand it is limited to Bangkok”.

One of the key components of the AEC is the allowance for 70% ASEAN foreign equity participation in all domestic service industries by 2015. “It takes time for companies to really pay attention to the changes and make plans for benefiting from this, stated Mr Picon. “Thailand has many service sectors that can compete in the region such as architecture and IT but companies must hone the skills of their employees to become true regional champions”, he said. “Language skills will be a key factor in all types of business in the future and this is one area that Thailand must move forward on”, he stressed. The danger for Thailand, according to Mr Picon, is the wish to have greater protection from non-ASEAN companies using the AEC to further penetrate the market.”The more protectionist clothing you wrap yourself in, the weaker you become” he warned. “Manchester United wouldn’t be where they are today if they didn’t play the likes of Chelsea and Liverpool”, he contended.

Mr Patima recognizes the great potential for Bangkok to be a key service sector provider in the coming decades. “There is still plentiful land available for office development especially close to the mass transit lines and rentals will remain very competitive within ASEAN”, he said. Mr Patima believes that concerted action by both private and public sectors should take place as soon as possible to ensure that 2015 will be a positive for the country. “If this happens then we will see a renaissance of the office market in the second half of the decade and Bangkok will continue to lead the way”, he added.

EARTH HOUR 2011 : One hand for our WORLD

Patima Jeerapaet, Managing Director of Colliers International Thailand

Colliers International Thailand would like to invite everyone to be a part of EARTH HOUR 2011 campaign to help the EARTH.

Earth Hour 2011, the annual ‘Lights Out’ event, will take place on Saturday 26 March 2011 at 8:30pm. By turn off the lights for 1+ hour. “We are creating a campaign to public and our clients to be aware and to understand Earth Hour initiatives. We would like to raise awareness about better environment and sustainability living on the public’s perspective. We want everyone to get involved and have the sense of belonging of their own contribution to the earth.” said Patima Jeerapaet, Managing Director of Colliers International Thailand.

“We start this campaign since 1^st of March 2011 with 3 properties under our management, Deutsche Bank, Assumption University (Suvarnabhumi Campus) for AU Mall, Dormitory, Sport Complex, Car Parking and The Tepp Serviced Apartment and we are promoting this campaign with our clients during this period” he added.

Colliers International Selected By International Association of Outsourcing Professionals (IAOP) as Top Outsourcing Provider

— Leading Real Estate Services Firm Makes Elite List for Sixth Consecutive Year —

Reinforcing its position as a best-in-class commercial real estate organisation, Colliers International has been selected as one of the world’s top 100 outsourcing providers for the sixth consecutive year as part of the 2011 Global Outsourcing 100®. The list recognises the best outsourcing firms across multiple industries, as selected by an independent judging panel organised by the International Association of Outsourcing Professionals (IAOP).

The Global Outsourcing 100 is a critical resource for all companies seeking to do business with best-in-class service providers and vendors. In this way, The Global Outsourcing 100 is more than just a ranking – – it is a critically important referral tool for any company seeking to find top-quality business partners.

“It comes as no surprise to us that Colliers International has once again been recognised as a leading firm by the 2011 Global Outsourcing 100,” said Douglas P. Frye, Global President and CEO of Colliers International.  “Our enterprising service philosophy and approach truly differentiates our professionals from other service providers. In addition, our shared culture and commitment to excellence has enabled Colliers International to accelerate the success of clients throughout the world.”

“To make this prestigious list for the sixth consecutive year is a great achievement for us and a true reflection of our company’s essence. At Colliers, our people are our asset,” said Piers Brunner, CEO of Colliers International Asia. “In Asia, we have carved a name for ourselves in service excellence and we will continue to advance further this year to become the undisputed top real estate organisation in the region. We look forward to collectively accelerating our success.”

Condominium growth matching demand in Pattaya’s vibrant market

The Pattaya condominium development market is in good health according to the latest market report from Colliers International Thailand. Supply of units in 2010 was the greatest since 1997 with around 4,700 being added and launches for last year were also strong with over 3,400 being introduced. However take up remains robust throughout all zones so the new supply is being absorbed well. “There are no concerns regarding a bubble in Pattaya as many are talking about in Bangkok at the moment”, said Antony Picon, Associate Director of Research at Colliers.

“Take up was high at around 70% in Jomtien which reflected the popularity of the lower end products on the market there” he added. The new darling of the condominium scene in Pattaya is Cosy Beach located in the Pratumnak Hill area, according to Mark Bowling, Senior Sales Manager at Colliers Pattaya Branch located on Second Road opposite Central Festival. “Several high rise condominiums are either currently under construction or in the relatively early stages of sales and marketing” he said. The Cliff by Nova Group was the first to enter the race in late 2009 and has successfully sold approximately 70% of its 427 units in little over 12 months, “a fantastic achievement taking into account the economic climate during that period”, added Mr. Bowling. Following on from the success of The Cliff, Nova Group recently introduced the similarly priced Legend on Cosy Beach, which together with five other proposed high rises in the same area, will increase the supply hugely in this hot spot by several thousand units between 2012 and 2013. Wongamat will also fuel future supply for 2013 with the introduction of three large scale luxury projects The Palm, Zire and W Tower. The success of Pattaya stems from a number of factors maintains Patima Jeerapaet, Managing Director of Colliers, ranging from the introduction of retail outlets such as Central Festival shopping mall, a wider choice of trendy entertainment and dining venues, faster access to Bangkok and an increasing number of family friendly tourist attractions. “That is why many Thais are now purchasing property in the city like never before”, he added. Mr. Bowling was also keen to point out the number of local developers who are now well established in Pattaya, which provides buyers with confidence when purchasing off plan. “Local developers such as Nova Group, Heights Holdings, Iguana, View Talay and Rattanakorn Asset have a strong portfolio of already constructed products”, he said. “Also two well known listed developers, Raimon Land and Major Development, are engaged in the market here and for others the city is appearing on the radar screen”, he added. Despite the continued strength in the Baht foreign buyers from the Euro zone, United Kingdom and USA continue to buy property in Pattaya in large numbers. Nevertheless spending power has been curbed with the most popular price range being between three to six million Baht. Mr Bowling added “There is plenty of availability in this market segment as we see designers and architects have given much thought to innovatively maximizing limited floor space more efficiently thus reducing sales prices without sacrificing location, facilities and overall quality”. The Russian market has become a force to be reckoned with especially in Cosy Beach and Wong Amat. Growth in tourism from India and Middle East also presents an opportunity but one for the future claims Mr. Bowling. “They mostly have a huge desire to buy property here, but are still very cautious and many have modest budgets. I do however see these countries becoming super powers on the Pattaya property scene in the near future, just as the Russians started off slowly several years ago” he explained.

RICS Thailand announces the new appointment of new Chairman and office bearers (2011-2012)

RICS (Royal Institution of Chartered Surveyors) announced today the new Chairman and office bearers for its Thailand board were elected on 13 January, 2011 (Thursday) for a one year term of office with immediate effect.  

Patima Jeerapaet, PhD, MRICS, MVAT, MTVA, is Managing Director of CIT (Colliers International Thailand) Property Consultants Co Ltd, a global real estate services firm equipped with more than 23 years of knowledge of Thailand’s property market.  In addition, he also chairs the Property Committee of Joint Foreign Chamber of Commerce in Thailand (JFCCT) in monitoring and enhancing Thailand’s property industry’s competitiveness.  He also serves as board member of Thai-Singapore Chamber of Commerce and Thai-Swedish Chamber of Commerce to promote Thai properties to Singapore and Swedish investors. 

The newly elected office bearers and members of Thailand Board are as follows: 

Major Office bearers:
Chairman:	Patima Jeerapaet
Honorary Treasurer:	Navaporn Wongurai
Honorary Secretary:	Nicholas Brown
Elected Members:	Apibarn Ariyakulkarn Roy Beevor Sonthaya Vanichvatana Janet Geddes Ian Hamilton Simon Landy C P Leong Sutee Sumatanonsak

 Dr Patima Jeerapaet, the first Thai elected as Chairman of RICS Thailand, says “I am honoured to take up the post and hope to build on the achievements of Ian Hamilton and the executive team.  Having built a presence in Thailand for more than ten years, RICS Thailand has over 100 Chartered Surveyors practicing in the country.  I foresee the market of Thailand will continue to grow and become one of the key markets in South East Asia. I am looking forward to further strengthen membership services locally and create a strong RICS brand by working closely with fellow board members and staff of RICS.” 

About RICS & RICS Asia  

RICS (Royal Institution of Chartered Surveyors) is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. 

RICS is the worlds’ leading qualification when it comes to professional standards in land, property and construction. With over 150,000 members globally, RICS represents, regulates and promotes the work of property professionals throughout 146 countries. 

RICS Asia supports a network of over 11,000 individual professionals across the Asia region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members. 

RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People’s Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam.

Investing in Thai property market, be ready for the big changes, AEC 2015!!

Thailand’s property market is considered one of the major business sectors in Thailand which is inevitably on the boom with the economical development of the country.

Thailand has passed its turbulences in year 2010 which is considered one of the most difficult years in the Thai history as well as for businesses in all sectors. Surprisingly, despite the political turbulence, many huge deals were closed during 2010.  In fact, some property investment sales did hit the highest record.  This is an indication of high confidence in the property sector as investing in a property is a long term investment.

The property market is mainly categorized into 5 different sectors which includes: industrial, commercial, residential, retail and hospitality.  But when property is talked or discussed about, the general public will most likely perceive on the residential market or condominiums. So, what about the property market in Thailand? Will prices go up in 2011?  Is there really scarcity of land? Is it equilibrium for the property market and what will happen in 2011?

We have so many questions on our minds. There is no doubt that prices of property along the BTS or MRT lines will increase continuously because of the limited amount of land and the high demand.  This is a scarcity amongst developers because these are considered the prime locations.  However in the future, should these lines expand, I believe that land along the extended lines would then become more attractive for developers. 

For year 2011 – the right defined statement would be “Certainty is uncertainty”. We should be ready to surf the changing wave if there is any!! We should plan for uncertainty and be ready to apply all strategies for each challenge and each circumstance.

Judging from the Q4, 2010, I would view the Thai property marketing in each sector for below for 2011.

Industrial
Many key industrial estate developers were able to achieve their targets in 2010.  The overall industrial market seemed to have improved and growth is expected by 10% in 2011, especially in manufacturing, automobile and parts, electronics and IT businesses.  There are also more demand from foreign and local manufacturers for the expansion of industrial estates. The many concern for the industrial sector would be Environment Impact Assessment (EIA) and Health Impact Assessment (HIA).

Commercial
The office market has improved slightly especially for Grade B office buildings because of the extended mass transit.  Many office buildings outside the CBD seem to attract interest from Tenants as well.  Within the CBD, many office buildings are adopting the trend of renovating their office buildings with a more modern look to retain existing tenants as well as attract new tenants. 
Where Regional Operating Headquarter (ROH) is concerned, no clear movement can be seen as yet but can expect to see results with 2011.  This year should be a brighter year for the office market. 

Residential
The overall residential market in 2010 mainly condominium was on the rise.  In 2011, this will rather be stable.  Condominium prices ranging between 80,000 – 120,000 baht per square meter will still be available within the city while on the outskirts prices would range between 50,000 – 75,000 baht per square meter.  Upper-end condominiums for foreign investment have slowed down because of the strong Thai currency there are still some investors who look for quality products at bargained prices.  This year we can expect for developers to gear their interest to building town houses or detached houses along the new mass transit extension lines.

Retail
The retail market has shown continuous improvement.  Local demand continue to grow strongly but for tourists, this might be a little hesitant because of the strong Thai currency.  There are many newly launched retail projects, for example supporting retail space in residential projects and community malls along the new mass transit lines.

Many big retailers and department stores are also adopting the trend to renovating / face lift / re-branding their stores to attract shoppers both in the capital and upcountry.  There are also a number of new shopping centers which is likely to be completed in 2011.

Hospitality
For hotels industry in 2011, we can expect that there will be approximately 1,662 new rooms for the upper scale and luxury hotel.  Hotel investors look for long term investment.  Please do not perceive this to be an oversupply because the expected payback period for hotel investors in between 10 – 12 years.  Hotel investors invest with an objective for capital gain in the future.  The low labor costs, low material costs and low import cost since 2010 are striving hotel investors to seize the opportunity for construction.

Like other businesses, the property market also has its life cycle. Certain properties within the main business and shopping areas are also starting to rejuvenate their assets such as properties within the Sam Yan area of Chulalongkorn University properties, Bangkok Bazaar and Langsuan of Crown Property Bureau, some old shop house projects along Sukhumvit Roads and other main roads.

Nevertheless, there is another sector that the locals should look into as another choice of property investment.  This is the agricultural sector which is rather sensitive, complex and controversial with regards to property rights and cultural rights.  This is an opportunity for the local property investors and is a way for life’s sustainability as well.

Another major change in the Thai property market we look towards in 2011, is the possibility of leasehold extension that will encourage and assist Thai developers, Thai investors as well as foreign investors in their property investment.  This will also bring in foreign direct investment into the country.

Looking a little bit further, the major change in 2015 would be the Asian Economic Community (AEC) which will positively impact the property market in all sectors as well as transportation and logistics. The high speed trains from China and the roads connecting countries will hugely benefit Thailand.  AEC will open up businesses amongst the Asian countries.  Geographically with Thailand in the center of many countries, Thailand will have a larger distribution channel.  The public may be scared of over supply of condominiums but once AEC is introduced this will no longer be on ‘over supply’ as we will have more demand for residential.  There will be a higher possibility and opportunities for Commercial, Industrial, Retail and Hospitality sectors as well..

Some of the property investment tips are:
1. Aim for best price, high return with low risks
2. Be well aware of the rules & regulations
3. Select for good location
Use them wisely and they could make you rich. 

Dr. Patima Jeerapaet is the Managing Director of Colliers International Thailand
Please feel free to drop your comments or questions to patima.jeerapaet@colliers.com