by Daryl Lum | Apr 11, 2024 | News
Thailand is set to unveil new real estate initiatives on Tuesday, April 9, as confirmed by the finance ministry, in an effort to rejuvenate the nation’s economy, the second largest in Southeast Asia.
Deputy Finance Ministers Krisada Chinavicharana and Julapun Amornvivat will present economic stimulation strategies through the real estate sector at a briefing scheduled for 0730 GMT on Tuesday, after a cabinet session, as announced by the ministry.
The presentation is expected to detail initiatives aimed at positioning Thailand as a leading global industrial hub, though specific information was not disclosed.
Reports from Thai media suggest that the finance ministry will recommend to the cabinet a series of real estate incentives, including a reduction in transaction fees for properties valued at up to 7 million baht (approximately US$190,891), decreasing ownership transfer fees to 0.01 per cent from the current 2 per cent.
Additional measures reported include tax incentives for individuals constructing their own homes and mortgage assistance for those with lower incomes.
The ministry is also set to suggest amendments to regulations governing foreign property ownership, notably by extending lease terms to 99 years from the existing 30 and permitting foreign nationals to purchase certain residential properties.
Prime Minister Srettha Thavisin, underscoring the need for significant economic stimulus, indicated on Monday that economic growth for the first quarter of 2024 might not exceed 1 per cent, a deceleration from the 1.7 per cent growth rate recorded in the preceding quarter.
Source: Reuters
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by Daryl Lum | Mar 20, 2024 | News
Thailand’s government is moving forward with a 500 billion baht ($13.9 billion) stimulus initiative and may consider borrowing to fund it, according to a deputy finance minister speaking on Wednesday.
Julapun Amornvivat made these comments during parliamentary proceedings, which commenced a three-day discussion on a 3.48 trillion baht ($96.5 billion) budget proposal for the 2024 fiscal year, aimed at revitalizing the economy of Southeast Asia’s second-largest nation.
“We emphasize the potential necessity of securing a loan through a legislative measure, though any adjustments would likely require re-approval from parliamentary members,” he stated. “Nevertheless, the initiative will proceed as planned.”
The initiative entails providing 10,000 baht to 50 million Thai citizens to be spent over six months, although concerns have been raised regarding its funding, with certain experts labelling it as fiscally irresponsible.
Julapun also expressed the government’s aspiration to achieve a balanced budget within an appropriate timeframe.
The proposed budget for the 2024 fiscal year aims for a 9.3 per cent increase in expenditure and a 0.3 per cent reduction in the budget deficit to 693 billion baht from the previous year.
Following the debate on the budget’s second and third readings, it will require further approval from the Senate and the King.
The government anticipates that the budget will be available for use by early next month, a delay from the original start date of October 1, 2023, due to prolonged political deadlock following a May election. A new government was established in August.
by Daryl Lum | Mar 6, 2024 | News
The Thai business group has upheld its growth forecast for 2024, anticipating a GDP expansion of 2.8% to 3.3%. Thailand’s economy is poised to maintain this projection, with the Joint Standing Committee on Commerce, Industry, and Banking, comprising representatives from these sectors, affirming that exports, a pivotal driver, are expected to increase by 2% to 3% this year.
Last year, Southeast Asia’s second-largest economy recorded a growth rate of 1.9%. The business group’s decision to retain its forecasts is grounded in the deployment of the government budget in the second quarter, providing a boost to the economy. Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries, highlighted during a press briefing that growth is anticipated to improve in the latter half of the year, driven by the enhancement of tourist arrivals.
The business group foresees 34 million to 35 million foreign arrivals in 2024, with tourism being a crucial driver for Southeast Asia’s second-largest economy. The expected improvement in growth is attributed to the deployment of government funds and the positive impact of increasing tourist numbers. Prior to the pandemic, Thailand welcomed nearly 40 million visitors, contributing 1.91 trillion baht ($53.41 billion) to the economy.
In 2023, the country registered 28 million foreign visitors, generating tourism revenue of 1.2 trillion baht ($33.71 billion).
(Source: Channelnewsasia)
by Daryl Lum | Mar 1, 2024 | News
Karlo Pobre, Colliers’ Deputy Managing Director, highlighted insights from the Real Estate Information Centre (REIC) of the Government Housing Bank, revealing a strong interest among Myanmar buyers in real estate across Bangkok, Phuket, and Chiang Mai.
According to REIC, individuals from Myanmar invested around 2.25 billion baht in Thai properties in 2023, securing the third position in terms of expenditure, trailing behind Chinese and Russian buyers. Pobre underscored that the average property price acquired by Myanmar nationals is 6.5 million baht, surpassing the figures for Chinese or Russian buyers. This positions them as a promising customer base for property developers, particularly in the post-pandemic era when demand for Thai properties among foreigners is on the rise.
Pobre further observed that Myanmar customers predominantly show interest in luxury condos in Bangkok, ranging from 10 to 20 million baht, favoring locations such as Sukhumvit, Phrom Phong, and Asoke—areas in close proximity to hospitals, international schools, shopping malls, and hotels.
For mid-level spenders from Myanmar, there is significant interest in condos priced at 5-10 million baht in the Aree and Phaya Thai zones, particularly along the BTS/MRT routes. This offers convenient transportation options and lucrative opportunities for rent or resale. Pobre noted that this buyer group, primarily the younger generation, frequently secures prime units during the pre-sale period.
Pobre emphasized the affluent individuals from Myanmar’s interest in luxurious pool villas in Phuket, especially in the Laguna and Bang Thao zones. Units exceeding 40 million baht are often sold out before completion. In Chiang Mai, Myanmar buyers are acquiring detached houses worth 20-30 million baht for retirement or family vacation purposes, taking advantage of the city’s proximity to Myanmar and its comparable facilities and tourist attractions to Bangkok. Popular locations include San Kamphaeng and Hang Dong districts.
Acknowledging political instability in Myanmar as a significant motivator, Pobre highlighted the distinction of Myanmar buyers from their Chinese counterparts, emphasizing a preference for privacy over communal living arrangements, such as those in Chinatown. Property developers should be attentive to this preference when aiming to attract high-spending individuals from Myanmar.
by Daryl Lum | Feb 19, 2024 | News
Official data released on Monday indicates that the Thai economy experienced a 1.9% expansion in 2023, marking a deceleration from the revised 2.5% growth observed in the preceding year. This downturn is attributed to lackluster exports.
According to the National Economic and Social Development Council (NESDC), a government agency, the gross domestic product for the October-December quarter exhibited a 1.7% increase from the previous year. This surpassed the 1.5% growth witnessed in the July-September quarter, with robust tourism and heightened consumption being the contributing factors.
A recent economist poll by Reuters had initially projected a 2.4% growth for the entire year and 2.5% for the fourth quarter. In contrast, the NESDC had projected a 2.5% growth for the full year in November.
The underwhelming performance of the Thai economy in the past year underscores the impact of weak global demand on export-oriented economies in Southeast Asia. Malaysia, Singapore, and Vietnam all recorded slower growth in their annual GDP figures, attributed to the global economic slowdown, central banks’ monetary tightening, and a downturn in China, the primary trade partner for many countries in the region.
Looking ahead to 2024, the NESDC downgraded its forecast, anticipating the economy to grow between 2.2% and 3.2%, compared to the previous projection of 2.7% to 3.7%. This contrasts with private sector economists’ recent projections ranging between 3.6% and 4.1% for the year. They attribute the anticipated acceleration to an improved export outlook, increased household consumption, and augmented government spending. Foreign tourist numbers are also expected to contribute to the growth.
Enrico Tanuwidjaja, an economist at UOB’s research center, stated, “The 2024 growth would be supported by a sustained rebound in foreign demand for Thai goods and services, resilient private consumption, and fiscal stimulus driven by political and macroeconomic stability.” However, he cautioned that geopolitical conflicts, a more abrupt-than-expected global economic slowdown, and uncertainties surrounding China’s economic recovery could potentially derail the projected recovery.
