Posts Tagged ‘Bangkok property market’

Cost multiplying for industrial market due to floods

November 20, 2011

The ongoing floods that have affected more than 59 provinces in Thailand have devastated huge swathes of agricultural land but the extremity of the floods have put more damaged industrial activity, including industrial estates and further potential flooding threatens more central locations causing greater disruptions to the supply chain, according to Colliers International Thailand.
While the floods have ravaged many parts of Thailand since August, relatively little damage to manufacturing was inflicted due to most factories being located away from initial flooding areas. However this changed on October 5th when water levels reached their highest point in living memory and Ayutthaya, home to significant manufacturing, was seriously affected. According to Narumon Rodsiravoraphat, Senior Manager for Industrial Services at Colliers, far greater damage was caused to industry in the last few days compared to the previous few months. “Over a hundred times greater financial loss to industry was incurred since 5th October due to severe damage to two industrial estates and two others have been evacuated in anticipation of flood waters reaching them”, said Narumon.

Many warehouses and distribution centres have been seriously affected especially in Ayutthaya area and along the main highway of Phahonyothin road which has become effectively the channel for water in the north to flow down to the central provinces. Over the course of the week further flooding is expected due to looming storms and industrial facilities in Pathumthani and Bangkok itself are now in danger.

According to Narumon, more than 500 factories have been forced to close during this situation and more than 100,000 workers have been affected from this crisis. “The damage from the flooding may be take up to two to three months to be accessed and rectified after the water level decreases as companies must take time for renovation of facilities as well as repair and re-operation of machinery”, she added.
The industrial market has picked up rapidly from 2010 and there has already been a shortage of warehouse space in some locations, especially good quality large space in Ayutthaya and some Bangna areas. Lamchabang, where there is strong demand for free zones, also seems short of supply. “Developers should understand more of the market demands and requirements in terms of specification, locations, layout, and general/free trade zones, etc. And we do hope that all new warehouse developments will all be raised floor”, said Narumon.
Although the initial reaction after the flood will be for the relocation of manufacturing, in reality manufacturers will remain rather sanguine according to Patima Jeerapaet, Managing Director of Colliers. “Many have invested significant amounts of money over time and they are just not going to walk away”, he said. “It also takes time to create a supplier network as well” he added. Patima also noted that serious damage was not limited to Thailand and the horrors of the flood are also evident in Cambodia, Philippines and Laos. “Manufacturers will be wary of relocating to countries with less reliable infrastructure to cope with floods and they may decide that Thailand is a better location than say Vietnam or Cambodia due to this fact. However new investment for manufacturing locations may be shifted towards non flooding areas in Thailand. All factories, distribution centers, and logistics companies also must create and work out their contingency plan well enough in advance”, said Patima.

One possible ramification could be the development of back up storage centres in locations upon higher ground that can protect goods from damage. “After the riots in 2010 many office occupiers considered back up locations and the same may now apply for industrial activity”, said Patima. However, unfortunately the flooding story has not run its course and a better assessment can be made in a week or so time. “We only hope that further damage is kept to a minimum”‘ added Patima.


Residential market likely to remain uncertain for sometime after the floods

November 20, 2011

With the ever growing inundation of Bangkok and exhausting uncertainties regarding the potential flooding situation in the centre of the city; even in the best case scenario the pattern for the residential market will be difficult to assess even after the floods have receded, according to real estate company Colliers International Thailand. For the rest of the quarter residential launches are very likely to remain subdued due to current sentiment and logistics. However unlike the post May 17 2010 situation, when buyers jumped straight into the market, many will probably be cautious about making such a big decision as a property purchase until the ongoing events have ended and an analysis of the flood is undertaken, according to Patima Jeerapaet, Managing Director of Colliers. “The full story will need to be known before buyers come rushing in again and developers will also need to reevaluate projects”, he said.


The decision as to whether to purchase landed property versus a high-rise condominium will likely be in favour of the latter due to the floods but even then people will evaluate which areas are less prone to floods. “Even if your high-rise home is protected you still don’t want the area inundated with flood water for weeks”, pointed out Mr Jeerapaet.  However long the delays in buyers coming back in the market the pent up demand is likely to increase and eventually a significant number of launches will take place. According to Tony Picon, Associate Director at Colliers, condominiums will be even more popular than they were before the floods. “We are noticing that more older people and children are staying in condominiums at the moment and the reason is that the owners are using units as temporary accommodation for their extended families”, he said. In the aftermath of the floods many who were forced to evacuate to centres may rethink their options. “You could find families encouraging one of their number to purchase a condominium unit and even help in financing, as it would then function as a back-up residence”, pointed out Mr Picon.


At the high-income end of the market the same reasoning could add to the trend for purchasing second homes in resorts such as Hua Hin or Pattaya. “Many have fled to these resorts especially people who don’t need to work in Bangkok such as children and the elderly”, stated Monchai Orawongpaisan, Senior Manager for Residential Project Sales and Marketing.  Again family pressure could result in more property being purchased not only as a weekend retreat but also as a back- up residence. “We could see significant activity in the market during the first half of next year based on this trend in Hua Hin, Pattaya and other nearby resorts”, he added.


While high rises will prove more popular, landed property will still remain a strong presence in the city. There are dire warnings of global warning leading to more regular flooding problems, including flash floods as a result of heavy downpours and a future trend could be simply opting for houses on stilts which reflected a common mode of living in the past. “Many countries have been affected by floods and stilt based housing is proving more popular with innovative designs coming to the fore which exclude the use of hardwood pilling”, said Mr Picon. The existence of such properties would also support the city in allowing water to run off quickly. “It is basically a way of accepting Mother Nature and living with it rather than trying to confront the situation “, he added.


Mr Picon pointed out that the problem for buyers finding locations that will be relatively safe from future floods is that effects can vary based on a number of factors. “Firstly, flooding is a combination of run-off from the north, heavy rains and high tides in November; and the impact of each differs for every flood leading to different geographical patterns of inundation “, said Mr Picon. The other variable is that the elaborate flood protection system for Bangkok is managed by politicians and administrators, and their priorities can change. “If the whole of Bangkok is inundated this time then buyers will face a big dilemma as to finding suitable locations in the future”, warned Mr Picon.

Colliers expands Residential Project Sales Team

June 22, 2011

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, (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

Bangkok condominium market cools down for Q1 2011

April 28, 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

March 21, 2011

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

March 18, 2011

Patima Jeerapaet, Managing Director of Colliers International Thailand

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 1st 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

March 18, 2011

— 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.”

Bangkok Office Market Q4 2010

February 4, 2011

The year 2010 represented one of the least active years for the office market as a whole in Bangkok as businesses were preoccupied with political disturbances and a possible double dip recession for many of its export destinations. The latest Bangkok Office Market Report Q4 2010 by Colliers International Thailand was released with one positive being that limited new supply over the coming few years should help bring occupancy levels back up. Antony Picon, Senior Manager of Research, pointed to issues facing the office market. “Future limited new supply can provide the market with an opportunity to reduce vacancy rates over the next few years”, he said. Mr Picon feels that Bangkok should try to capitalize on future opportunities for service sector growth especially in the form of ASEAN 2015 liberalization. “Thailand should compete harder by improving education as well as more incentives from the Board of Investment .  Other countries are moving fast in the Business Process Outsourcing market such as Philippines and Vietnam; Thailand shouldn’t be left behind”, he remarked.

Patima Jeerapaet, Managing Director of Colliers emphasized the positives including new incentives for Regional Operating Headquarters and growing interest from China in Thailand as a regional hub. “Thailand is located in the heart of South East Asia and could gain significantly from the dramatic changes that are shaping the region and this will be very beneficial for the office market,” he pointed out. Mr Patima was also optimistic regarding Sathorn Square, the largest office building in the CBD since Empire Tower. “It is time that we saw new modern office towers being built in our city which reflects the energy and optimism we feel about the future”, he added.

Occupancy rates remained stable over the course of the year as a whole but with variance according to area. The Northern Fringe dipped from just over 86% to just below 84%, while the Outer CBD improved by about the same amount and now reaches 86%. The CBD registered about a 1% improvement over the course of 2010. Rental rates remained fairly static in 2010 as landlords maintain rates and provide incentives to attract tenant s to stay put.  Only just under 6,000 sq m was added to supply in 2010 in the form of Office@Sivatel . “In many ways the big story of the office market in 2010 was that there was no story,” asserted Mr Picon. “ My forecast for 2011 is the same again although the opening of Sathorn Square in Q1 2011 will alter the dynamics in the Sathorn Road area but overall the tense global financial situation and lingering domestic tensions will keep many businesses in a holding pattern” he said. However Mr Picon ended on a more optimistic note. “If the country can move forward in the latter half of the year with developing its service sector in a more stable environment, then we might see a big improvement ”.

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

January 22, 2011

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!!

January 17, 2011

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.

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).

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. 

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.

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.

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