View more on these topics

Thailand: Prime time

Thailand, despite not securing a place in this years World Cup, is a country full of promise and hope for future success. It is this hope that sees many football fans in the country already wearing T-shirts for this years World Cup that state The 2010 FIFA World Cup South Africa: See you there.

The Thailand property market is another area that exudes confidence, especially in the capital city of Bangkok, where any space is sold at a premium. Above all, the residential and office building sectors are healthy and, overall, the signs for the future are promising.

One of the main factors influencing such a strong market in Thailand is the demographic of the country, where 33% of the population is aged between 25 and 44 years old. This sector is behind a surge in demand for property across all residential levels in the country, helping to overcome the negativity of the 1997 crisis and boost the property market of the future.
Despite this high demand for real estate, it is developers that have to pay special attention when embarking upon projects.

With the increases in oil prices, interest rates and overall building costs in the country, projects have to be carefully managed to ensure a profitable return. It is now evident that property developers are spending more money on the
finishing touches and marketing and advertising their schemes than ever before. They are taking no chances when launching projects to ensure they target the right consumers and gain their confidence. Not only do these projects have to offer value for money, but the Thai market is now focussed in the right locations, especially in Bangkok, as a unique selling point.

As we look to the future, a number of factors will determine how quickly the market continues to gain pace,
however, factors such as inflation, land and construction costs, the level of tax and interest charges will all play a part.

The rental market in cities such as Bangkok has also gained pace, with competition particularly strong in the serviced apartment sector. As space becomes a premium, rents are increasing for many, above all for those in prime locations within the city. Many developers are looking to new projects in areas such as Sukumvit in the city, where a strong expatriate presence continues to put extra pressure on the local property sector.

The past decade has seen the market go from strength to strength after a cautious start. The country can now look forward to increased growth in the sector as demand continues to outpace supply.

Paradai Theerathada is vice-president of communications and public affairs at GE (Thailand)


Brokers should know about lenders’ processing times

From Keith Butler I read the Star Letter in the May 22 issue of Mortgage Strategy regarding mortgage processing service standards with much interest. If service in general – and the speed at which offers are issued in particular – is part of the process of selecting the most suitable mortgage product as it should […]

Solent launches 10th brand with Kensington

Solent Mortgage Services has launched its 10th mortgage brand, Collingwood Homeloans, in association with Kensington Mortgages. Collingwood will be the first fully branded partnership launched by Kensington. Paul Robinson, chief executive officer of SMS, says: “Kensington has been a long-term partner for a number of years and we are thrilled that it has chosen SMS […]

Which? warns on buying abroad

Which? has published a guide entitled Buying Property Abroad warning consumers of the dangers of the overseas property market. The number of people in the UK owning a second home overseas has grown recently, and in 2003/04, over a quarter of a million people owned property abroad. No matter how cheap an overseas property may […]

EBay trading boosts self-cert

The increase in people supplementing their income by trading on eBay is helping to propel the self-cert market, says GMAC-RFC. The UK version of the online auction site hit the 10 million user milestone in February last year, and it is estimated that one in three internet users visits the site at least once a […]

Why your clients need some tough love

In any relationship that matters, professional or personal, you should be upfront with someone if you think they’re making a decision or doing something they might later regret. Being honest with someone and having their best interests at heart, however hard the message, is key to building trust in any relationship. So how does this […]


News and expert analysis straight to your inbox

Sign up