by kevinyeo | Dec 24, 2017 | Bangkok Property Market Updates, Infrastructure & Urban Development
Construction of a long-awaited Thai-Chinese railway line that will link Thailand, Laos and China officially began on Thursday with a ground-breaking ceremony in the northeastern Thai province of Nakhon Ratchasima.
The first phase of the project, a 250-km (155 mile) high-speed rail line linking Bangkok to Nakhon Ratchasima, is expected to be operational in 2021.
The full line is expected to stretch 873 km (542 miles), linking Thailand and Laos at the northeastern Thai city of Nong Khai.
It is part of Beijing’s ambitious Belt and Road infrastructure drive, which aims to build a modern-day “Silk Road” connecting China to economies in Southeast and Central Asia by land and the Middle East and Europe by sea.
But the Thailand project, which began in 2014 with formal talks, has been beset by delays, including disagreements over the design and funding as well as technical assistance.
Prime Minister Prayuth Chan-ocha on Thursday presided over a ceremony to begin construction of the first, 3.5-km section of the railway.
“Thailand is developing in every aspect to become the centre of connectivity … and this route is to connect to Cambodia, Laos, Myanmar and Vietnam to China, India and further to other countries,” Prayuth said in a speech.
Completion of the first section is expected to take six months, according to the transport ministry.
In September, Thailand signed two contracts worth USD 157 million with Chinese state enterprises covering the engineering design of the project and the hiring of Chinese technical advisers.
by kevinyeo | Dec 24, 2017 | Bangkok Property Market Updates, Investment Analysis, New Launches & Project Previews
Property agency Nexus Property Marketing forecasts the property market will see growth of more than 10 per cent in the number of project launches next year.
This year Bangkok condominium have been booming, with the most project launches seen in a decade. The Phra Khanong-Suan Luang area remains attractive with the largest number of new projects launched. The Pathumwan—Ratchathewi area has seen the highest increase in prices , by up to 16 per cent.
Nexus points that a future residential trend will move to a “transition” situation, being driven by various factors including investment by foreigners, the exponential growth of the CLMV countries (Cambodia, Laos, Myanmar, and Vietnam), the trend for an ageing society, technology influencing new property development, the company’s managing director Nalinrat Chareonsuphong said.
According to the survey, the top three locations for condominium supply increases are: 1. Phra Khanong—Suan Luang, with 14,400 units or a rise of 23 per cent; 2. Phaya Thai—Ratchadaphisek, with 13,200 units and an increase of 21 per cent; and 3. Thon Buri— Petchakasem, with 8,900 units or a growth of 14 per cent. New supply in these locations accounts for 58 per cent of the total number of new condominiums launched in Bangkok.
by kevinyeo | Dec 24, 2017 | Bangkok Property Market Updates
Listed property firm AP Thailand has announced presales of THB 41.6 billion for the year ended 15 December 2017.
This is 85 per cent higher than the previous year and 60 per cent higher than projected presales of THB 26 billion, thanks to robust sales of its low-rise developments as well as a revival of its Life brand condominium projects.
The company’s chief executive officer, Anuphong Assavabhokhin, said factors in the company’s success were the steady growth of the low-rise products – single detached houses and townhomes –and the three Life-branded condominium projects, Life Ladprao, Life Wireless and Life Asoke-Rama 9, which together closed 90 per cent of sales.
The company expects the property market in 2018 to be in line with the country’s economic growth. Industry competition will continue to be concentrated among the major players who will adapt their strategies to suit economic circumstances.
Supplies in the middle to high-end segments will continue to be well
by kevinyeo | Dec 24, 2017 | Bangkok Property Market Updates, Investment Analysis, Legal, Tax & Due Diligence
The average price of condominiums could grow at least 8% in 2018, despite the looming land and buildings tax, says property consultant Nexus Property Marketing Co.
Managing director Nalinrat Chareonsuphong said the land and buildings tax, due to come into force in January 2019, is unlikely to harness the increase in land prices in Bangkok, allowing condo prices to keep rising.
“There is unlikely to be forced sales among landowners who are pressured by the land and buildings tax,” she said.
“If the tax is effective, they have options to apply to their assets anyway and will not need to sell the plots.”
As land prices will keep rising, condo prices will also rise next year. This year the average selling prices of new condos in Bangkok rose by 8% to 130,600 baht per square metre from 121,000 baht per sq m last year.
The average increase of condo prices in the past five years was 9% per year.
Pathumwan and Ratchathewi districts saw the highest increase in condo prices, with a rise of 16% to 234,000 baht per sq m on strong demand.
Land costs in these locations were also higher while new condos were limited in supply over the past several years.
For inner-city locations, the average selling price rose by 12% to 210,700 baht per sq m. In Yannawa and Klong San districts, where condo sales were healthy, the average selling price also increased by 12%. In Bangkok outskirts, the increase in price was slight at around 5%.
According to Nexus’ market research, the number of new condos launched in Bangkok this year hit the highest in a decade with a total of 62,700 units from 128 projects.
The new condo supply launched this year was 15% higher than the five-year average, which was some 53,600 units per year.
The total condo supply in the market was 550,000 units.
The highest increases in condo supply were seen in Phra Khanong-Suan Luang area with 14,400 units or a rise of 23%; Phaya Thai-Ratchadaphisek with 13,200 units, an increase of 21%; and Thon Buri-Phetkasem with 8,900 units, or growth of 14%.
The new supply in these three locations accounted for 58% of the total of new condos launched in Bangkok.
The Phra Khanong-Suan Luang area also saw the largest number of new projects launched, while the Pathumwan-Ratchathewi area saw the highest increase in prices with a rise of 16%.
In 2017, new demand for condo sales in the market totalled 57,300 units, which was 14% higher than the average sales over the past five years, or some 50,400 units per year.
The total condo sales rate in the market stood at 90%, while the total sales of condos in the market rose to 496,100 units.
The number of unsold condos in the market is around 53,900 units.
In 2017, the average sales rate of new condos launched in the market was roughly 62%.
Phra Khanong-Suan Luang, Phaya Thai-Ratchadaphisek and Pathumwan-Ratchathewi saw the highest numbers of condos sold.
The Pathumwan-Ratchathewi area saw the highest new condo sales rate at 88%.
In the past five years, the condo market expanded to outer city locations. The zone where condo area growth was the highest was Thon Buri-Phetkasem with a rise of 107%, followed by Tiwanon-Rattanathibet (76%) and Chaeng Watthana-Pak Kret (68%), when compared with 2016.
Ms Nalinrat said the property market next year will see growth of over 10% in the amount of new supply.
“Next year the property market will be in transition, driven by various factors including foreign investment, exponential growth in Cambodia, Laos, Myanmar and Vietnam, the ageing population and technology for new property developments,” she said.
by kevinyeo | Dec 17, 2017 | Bangkok Property Market Updates, Investment Analysis
Thailand’s real estate market will rebound in 2018 as the local economy continues to recover, with condominiums remaining the top pick for consumers attracted to an urban lifestyle, says the inaugural DDproperty Property Market Outlook report.
Housing for senior citizens will grow in popularity as developers compete for this segment of the market amid an aging population in Thailand, the research report said.
The report aims to help homebuyers make informed decisions. It analyses data from the past year to forecast market trends in the next six to 12 months, helping buyers, sellers, renters or lessors to not only understand the market, but to prepare plans and make decisions with greater confidence.
Real estate demand in Bangkok in 2016-2017 was supported by developers launching projects near future mass transit lines and the city’s fringe areas.
However, when the government’s economic stimulus package expired in the second quarter of 2016, demand became sluggish for most of 2017.
“DDproperty expects demand for new releases to start moving in an upward trend as we head into 2018, thanks to rising consuming spending – in-line with the economic recovery, the expansion of mass transit lines, and government infrastructure projects along the Eastern Economic Corridor,” said country manager Kamolpat Swaengkit.
“On the supply side, 2018 may see even more projects from developers compared to 2017, so the real estate market is forecast to show signs of improved health next year.”
