Bangkok ranks as the third most popular city for Chinese entities expanding their investments in the property sector in terms of corporate leasing activity over the past three years, an industry expert said.

Nexus Property Marketing managing director Nalinrat Chareonsuphong said that in the first quarter foreign investors increased their investments in Bangkok’s condominium sector. Large Chinese companies that did not invest in joint ventures with Thai developers accounted for around 20 percent of the condominium units launched in the city for the three months – at projects worth a combined THB 30 billion-plus.

The brisk activity in the market is seen as reflecting foreign investors’ increased confidence in Thailand.

Despite foreigners investors already being very active in the Thai market – along with Japan, Hong Kong, and Singapore – they are looking for opportunities to add to their investments in the Kingdom.

“We have started to see more condominium projects that target Japanese people in Thailand as well. And we expect to see at least four to five large-scale projects from Japanese developers this year,” Nalinrat said.

In the first quarter of the year, some 14,094 condominium units were launched in the Bangkok market – by both large and small developers. The new supply corresponds to an earlier projection, resulting in a total of 564,000 units.

Due to the rising land prices in the heart of Bangkok, it has been very challenging for the developers to retain the land for new developments, Nalinrat said. This has resulted in most projects being located farther out from the centre, with the Sukhumvit zone accounting for 29 percent, the Phayathai-Ratchadapisek-Rama 9 zone with 23 percent and Thaksin-Petchkasem, 17 percent.

In the second half of 2018, the company expects to see more projects launched in the Chaeng Wattana and Ram-Indra areas due to a clearer view of the plans for the Pink Line mass rapid transit route.

“We also will see more projects of super-luxury condominiums with a starting price of THB 400,000 per square meter by the end of this year or early next year, as a result of the higher land price,” Nalinrat said.

“Meanwhile, the market for city condominiums will keep expanding into the areas served by the extensions of the rapid mass transit lines, but the prices in this market will not increase by much.”

Meanwhile, JLL yesterday announced the finding of its latest survey in the series “China12: China’s Cities Go Global”. Bangkok was found to be the 10th most popular destination for mainland Chinese firms expanding overseas and ranks third in terms of volume for Chinese corporate leasing activity over the past three years.

The report analyses 12 Chinese cities and their transformation into major hubs of innovation and global interaction. It also delves into the country’s emerging wave of influential corporates and the impact that this group of dynamic Chinese companies has beyond the domestic market.

“The China12 is home to a growing group of highly dynamic and ambitious new-generation firms that will drive the next wave of globalization,” said Jeremy Kelly, director of global research at JLL. “We’re already seeing a higher number of domestic brands – both established firms and startups – enter the international market, with key targets in South and Southeast Asia.”

Among the global network of cities, Asian markets such as Singapore, Tokyo, Jakarta, Bangkok, Seoul, and Delhi are featured prominently. Leading the pack is Singapore as the top destination for mainland Chinese firms expanding overseas.

“Not only is it Asia’s most stable and transparent market and a global financial services hub, Singapore also carries strong links to China and is geographically well-placed to act as a gateway into Southeast Asia,” the JLL report says.

Two of the world’s most globalized cities – Tokyo and Seoul – come in at a close second and in fifth place, respectively, demonstrating China’s appetite for the world’s leading gateways and financial centres.

Jakarta ranked sixth, and Bangkok at 10th are major beneficiaries of Chinese companies’ expansions into Southeast Asia. Delhi, in 13th place, is also noted as a key target as Chinese corporates seek to tap into India’s vast population of over a billion people, the report notes.

Under this partnership, agencies of the Thai government and business units of Alibaba will work closely in a number of areas, including e-commerce, digital logistics, tourism, and training.

The partnership represents the strengthening of collaboration between the Alibaba Group and the Thai government following the signing of a letter of intent in 2016, a move that kick-started a series of joint efforts to bolster the capacity of Thai entrepreneurs in gaining access to new markets and taking advantage of digital innovations.

Deputy Prime Minister Somkid Jatusripitak said that the strategic cooperation with Alibaba would bring benefits to Thai small and medium enterprises and farmers as well as to the tourism industry while pushing forward digital economic development in Thailand.

Jack Ma, executive chairman and co-founder of Alibaba Group, said that China is on its way to becoming the world’s largest consumer market, driven by rising income and a growing middle class that now numbers 300 million.

There is no better time than now for trade-oriented countries to seize the opportunity to export to China, as the country continues to open its doors wider to global trade, Ma said. Quality Thai agricultural products such as fragrant rice, durian, and other tropical fruit are particularly sought after by the Chinese consumer.

Key initiatives:

First, the establishment of a Smart Digital Hub in the Easter Economic Corridor (EEC) to support cross-border trade with China and other markets.

Alibaba’s smart digital logistics business, Cainiao Network, will establish a Smart Digital Hub in the EEC. The hub will utilize Alibaba and Cainiao’s data and logistics technologies and processes to optimize the cross-border flow of goods between Thailand and China, as well as with other markets. Cainiao will also work closely with the EEC Office and Thailand Customs to promote the digitization of customs processes through technologies such as “big data” and artificial intelligence, as well as sharing global best practices. The Smart Digital Hub will be an open platform enabled to provide services to all players in Thailand’s digital economy.

The Smart Digital Hub is expected to be built starting this year, with operations expected to commence in 2019.

Second, equipping SMEs with e-commerce skills.

Alibaba Group said it would continue its efforts to connect Thai SMEs to Alibaba’s 500 million active users in the Chinese e-commerce market. Other global e-commerce opportunities will roll out through a partnership between the Thai Ministry of Industry’s Department of Industrial Promotion (DIP), the Thai Commerce Ministry’s Department of International Trade Promotion (DITP) and the Alibaba Business School – an accredited university founded by Alibaba Group and Hangzhou Normal University.

Under this training collaboration, SMEs across Thailand, including SMEs in rural areas and individual entrepreneurs, would have the opportunity to gain e-commerce knowledge and skills to start e-businesses and leverage the Internet to develop their business online.

Third, training Thai digital talent.

Under the collaboration with DIP and DITP, the Alibaba Group also plans to develop Thai talent for the digital economy era.

The Alibaba Business School would work with both government departments to develop and update effective strategies for talent development in Thailand, while also providing students and academics from this country with opportunities to take part in various academic exchanges and courses offered by the business school in Hangzhou, China. Resources and expertise from the Alibaba Business School would also be made available to the DIP and DITP for localization and further use in Thailand.

Fourth, cooperating in developing “smart” and digital tourism.

The Tourism Authority of Thailand will expand cooperation with Alibaba’s online travel business, Fliggy, which is one of China’s leading online travel service providers.

The cooperation will focus on support for smart and digital tourism in Thailand.

As an official strategic partner of TAT, Fliggy will work with the body to offer smart technological experiences at multiple facilities and tourist attractions across Thailand for the convenience of visitors – ranging from online tour guides to electronic ticketing systems.

Fliggy and Ant Financial, Alibaba Group’s affiliate and operator of Alipay, are also in active discussions with various related government agencies to drive a digital transformation of Thai tourism. The holistic change would start from applications for pre-departure visas and “visas on arrival”, through to payment of post-travel digital services and the tourist tax refund via the Alipay system. It is expected that the strong collaboration between Alibaba Group and Thai government will help attract more Chinese travelers to Thailand and increase the nation’s tourism income.

Fifth, creating an official Thai rice flagship store on Tmall.

Alibaba and the Thai Commerce Ministry have together launched the first official Thai rice flagship store on Tmall, the world’s largest third-party platform for brands and retailers.

Alibaba will also help drive the sale of popular Thai fruit, such as durian, into China. Alibaba and the ministry will work together to drive the growth of Thai rice and other agricultural product exports to build an area of strength in the Thai economy and position Thailand globally. Alibaba will also assist Thai agricultural businesses to harness the power of Alibaba’s unique insights into the Chinese consumer market.