Thailand’s residential property market has been identified as “the one to watch” by a real estate agency firm in its latest report.
Colliers International, in its Asia Market Snapshots for Q3 2017 focusing on Capital Markets and Investment Services, noted that Thailand, and Bangkok , had seen a rise in interest from international investors attracted by returns that may not be possible in their own country.
Transaction levels, the real estate agency said, have remained steady.
Office demand, particularly for CBD Grade ‘A’ stock remained strong, resulting in a number of developers focusing their attention in this area.
The shortage of supply for office accommodation is expected to remain until 2020, when an increasing number of office developments will begin to complete.
Tourism volume in Thailand continued to rise, fuelled in particular by an increase in Chinese tourists, which helped occupancy rates in the hospitality sector.
The industrial sector remained steady, with the Thai Government increasingly focusing on attracting foreign investors with a variety of Thailand 4.0 measures.
Major Deals to Highlight include a joint-venture between Sumitomo, a Japanese company, and Property Perfect Plc, to develop a condominium project on Sukhumvit 59.
Property Perfect, with its subsidiary Grand Asset Hotels, will take a majority stake in Grand Star Co, and 49 percent will be held by Sumitomo Forestry.
There was also another joint-venture with Japanese company Hoosiers partnering with All Inspire to invest significantly overseas and a Thailand project worth US$ 60 million on Sukhumvit 50.
“We expect the Bangkok residential property market to continue to remain robust, as international investor interest continues on an upward trajectory, coupled with significant local demand.” Colliers said.
Tenant demand in the office sector is expected to remain buoyant and continue to drive rent levels upwards.
It concluded by saying the residential property sector is the one to watch, with many developers competing to sell completed projects in central and outer Bangkok.