by Daryl Lum | Mar 20, 2024 | Bangkok Property Market Updates
Thailand’s government is moving forward with a 500 billion baht (USD 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 (USD 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 1 October 2023, due to prolonged political deadlock following a May election. A new government was established in August.
by Daryl Lum | Mar 6, 2024 | Bangkok Property Market Updates, Investment Analysis
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 (USD 53.41 billion) to the economy.
In 2023, the country registered 28 million foreign visitors, generating tourism revenue of 1.2 trillion baht (USD 33.71 billion).
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by Daryl Lum | Mar 1, 2024 | Bangkok Property Market Updates
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.
