Many developers expect the integration of ASEAN countries to generate benefits for Thailand’s property market
In Thailand,more than 50 percent of new developers to launch projects in recent years were from other sectors including garments, jewellery and machinery, according to Monchai Orawongpaison, senior manager for project sales and marketing at property consultancy firm Colliers International Thailand.
Many developers in Thailand have amassed land over several years and are not concerned that Bangkok’s new city plan may have an impact on the potential of plots, said Monchai. The new city plan is scheduled to come into effect from May, reported the Phuket News.
The economic integration of ASEAN (Association of Southeast Asian Nations) countries is expected by some developers to have a positive effect on Thailand’s property market. As such, some developers are launching projects that will be completed by 2015.
Colliers signed sales management contracts for 10 projects worth THB8.5 billion (US$285.8 million) in 4Q2012 and 1Q2013 so far. Figures for the six-month period are more than double contracts worth THB4 billion (US$134.5 million) acquired by Colliers throughout 2011.
One of Colliers’new projects includes the Navatanee project on Seri Thai Road in Bangkok. The development comprises 30 houses between THB40 – 50 million (US$1.34 million – 1.68 million).
Colliers also represents Celeste Hua Hin, a condominium project in Khao Tao worth THB1.4 billion (US$47 million). The project is being developed by Khao Tao Bayview Resort.
Colliers also signed to represent the Orion Condominium Pattaya, a development worth THB1 billion (US$33.6 million). The Orion is being developed by a firm new to the industry.
Atjosira Property, which plans to develop high end single housing in Si Racha is also in talks with Colliers.
Colliers currently provides services for 12 projects in Myanmar and is planning to introduce a London property to the Thai market later this year.
Last year Colliers recorded revenue of THB200 million (US$6.7 million), up 40 percent from 2011. The property consultancy firm has targeted a growth of 30 to 40 percent for 2013.
Property prices and office and retail rents will grow by five to 10 percent this year as a result of Thailand’s property boom, according to Colliers’ research.
Condominium units priced lower than THB3 million (US$100,899) are predicted to be in high demand. According to Colliers, sales in some areas may be slower due to supply initially outstripping demand.
Only one office building, The Nine Tower on Ratchadaphisek Road, is scheduled for completion this year according to the Phuket News.