BangkokInvestments21.08.14

Report
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

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