Political stability, policy consistency and a peaceful environment are the top requirements of local and foreign developers from the new government, rather than any incentives to boost the property market.
Golden Emperor Properties remains confident in Thailand’s rising economy and excelling property market supported by infrastructure developments and the Thailand 4.0 master plan which will continually be heavily backed up by the new government.
Barny Swainson, senior director and head of agency at property consultant Colliers International Thailand, said foreign investors are likely to continue their investment in the Thai property sector.
“Property investment from foreign investors under joint ventures has not dropped since 2015, with the majority from Japanese developers,” he said. “They will continue their investment this year and have a positive view on the general election.”
According to Colliers, foreign investment under joint ventures with local developers rose from 50 billion baht in 2015 to 55 billion baht, 75 billion baht and 110 billion baht during 2016-18.
This year the figure is expected to rise to 120 billion baht, which will boost cumulative value to 550 billion baht. There will also be new entrants from China making a large investment soon, Mr Swainson.
By the number of joint venture projects over the past five years, Japan and China were the two biggest investors, representing 29% and 27% respectively. They were followed by a mix of China and Hong Kong (9%). Some 80% of joint venture project value during the past five years was in the residential segment and 20% was in commercial properties such as hotels, offices and retail.
Aliwassa Pathnadabutr, managing director of property consultant CBRE Thailand, said the general election can boost the confidence of international investors in the property sector because they have a positive view towards Thailand restoring democracy.
Atip Bijanonda, president of the Housing Business Association, said policy consistency from the new government will be a key factor driving the property sector, as Thai property growth mostly relies on new new infrastructure projects. “The new government should continue key policies initiated by the earlier government, which are the economic driver,” he said.
The projects include high-speed rail connecting three major airports, the Eastern Economic Corridor, double-track rail in many provinces and mass transit lines in Bangkok.
Chadatip Chutrakul, chief executive of Siam Piwat Co, the operator of Iconsiam, Siam Paragon, Siam Center and Siam Discovery, said the company will spend at least 70 billion baht over the next five years and the new government should create stability and a peaceful environment. “Stable government will draw new expatriates to work in Thailand,” she said. “It should have clear policies to grab and maximise a chance to become Southeast Asia’s leader.”
Mrs Chadatip said the election is meaningful and the world is watching. “During the past decade, there were so many things happening,” she said. “We have come so far. The private sector has not stopped investment, as we have a good foundation.”
Pornnarit Chuanchaisit, president of the Thai Real Estate Association, said that if the new government can be set up with no chaos, the economy will soar.
Source: Bangkok Post