Foreign investment in Thailand rose by 60% to reach 134 billion baht in the first nine months of this year, according to a government representative, with Japan remaining the leading source of investment.
Jirayu Houngsub, spokesperson for the Prime Minister’s Office, announced that approvals were granted for 636 foreign businesses under the 1999 Foreign Business Act, reflecting a 29% increase compared to the previous year.
These investments generated jobs for 2,505 Thai workers.
Japan led in investment volume and applications, contributing 74 billion baht across 157 applications, followed by Singapore with 12.2 billion baht (96 applications), China with 11.9 billion baht (89 applications), the United States with 4.14 billion baht (86 applications), and Hong Kong with 4.11 billion baht (46 applications).
“Key areas such as platform and software businesses have driven foreign investor interest, bolstering strong growth in the Thai economy,” said Mr. Jirayu, noting that these sectors accounted for 28.3 billion baht, or 7.27% of total foreign investment during the period.
The top three investor countries in platform and software sectors were Singapore, Taiwan, and Malaysia, respectively.
The Bangkok housing market is projected to decline amid economic challenges, according to SCB EIC, the research arm of Siam Commercial Bank. They anticipate a 10% drop in the transfer of new residential units in Greater Bangkok this year, with an additional contraction of 1-3% likely in 2025, largely due to Thailand’s stagnant economic conditions.
In terms of market value, a 9% decrease is forecast for 2024, with potential stabilization between 0-2% expected next year.
The slowdown in the housing sector stems from rising living costs, reduced purchasing power, high household debt, increased interest rates, and more stringent mortgage approval processes. These pressures are prompting prospective homebuyers, especially within lower- and middle-income brackets, to delay their purchasing plans.
SCB EIC also forecasts a 28% year-on-year reduction in newly launched residential units for 2024, with moderate recovery expected in 2025 as the contraction may ease to 2-4%.
To address these conditions, developers are concentrating on middle- to high-end projects where buying capacity is less affected. Major local banks reported a decline in mortgage lending in the first nine months of this year due to tighter mortgage criteria.
SCB, the fourth-largest bank in Thailand and a leader in housing loans, reported a mortgage loan portfolio of 779 billion baht as of September 2024, reflecting a quarter-on-quarter decrease of 15.5%, a year-to-date decline of 39%, and a year-on-year drop of 38.5%.
Bangkok Bank (BBL), the country’s largest lender, recorded a mortgage portfolio of 332 billion baht, slightly down by 0.6% quarter-on-quarter and 1.7% year-to-date. Bank of Ayudhya (Krungsri) saw its housing loan portfolio decrease to 248 billion baht, down by 3% quarter-on-quarter and 7.6% year-to-date.
TMBThanachart Bank (ttb) reported an overall mortgage lending decrease of 0.8% quarter-on-quarter and 2.2% year-to-date as of September, according to a filing with the Stock Exchange of Thailand (SET).
In contrast, Krungthai Bank (KTB), Thailand’s second-largest lender, reported growth in its mortgage loan portfolio, reaching 498 billion baht by September, a 1.5% increase quarter-on-quarter and a 2.9% rise year-to-date.
Kasikornbank (KBank) did not release mortgage loan data in its SET report.
In response to current market trends, major banks announced widespread cuts to their lending rates, including adjustments to the minimum retail rate (MRR) for housing loans. BBL now offers the lowest MRR at 7% per year. Other banks’ rate reductions will be effective from Nov 1, with the revised MRRs as follows: KTB at 7.445%, KBank at 7.180%, SCB at 7.175%, Krungsri at 7.275%, and ttb at 7.705%.
Siamese Asset Public Company Limited (“Siamese Asset”) is a local Thai developer that is listed on the Stock Exchange of Thailand. In 2019, it was awarded the Best Developer award at the PropertyGuru Thailand Property Awards.
Siamese Asset has a development in the Rama 9 area. The development is Cassia Residences Rama 9 Bangkok. It is located along the Orange Line MRT line.
Here’s our video review of Cassia Residences Rama 9 Bangkok:
It is located approximately 350 meters from MRTA station. MRTA station is an MRT station along the Orange Line. The Orange Line is a new MRT line and part of Bangkok’s expansion of its rail network. MRTA station is one station away from Thailand Cultural Center MRT Station which is along the Blue MRT line. The Blue MRT line is the metro line that has been around for a very long time. It is the one where tourists are familiar with. It links to Sukhumvit MRT Station which is located next to Terminal 21 Shopping Centre. Thailand Cultural Centre MRT Station is the interchange between the Blue and Orange MRT Lines. The Chinese Embassy and Stock Exchange of Thailand is located here.
In general, Cassia Residences Rama 9 Bangkok is close to these landmarks.
The demand for rental units should be very strong as there is a huge catchment area of tenants.
Cassia Residences Rama 9 Bangkok is in collaboration with the Banyan Group which will be running the development as a hotel/ serviced residence.
Here is the factsheet of Cassia Residences Rama 9 Bangkok.
This is how the building will be broken into residential and hotel zones.
Here are some mock-ups of the common areas.
The unique aspect of this development is that Banyan Group will manage it. Here are some of the exclusive services that will be available to residents at Cassia Residences Rama 9 Bangkok.
Here are some mock-ups of the units.
There is a rental guarantee scheme available for Cassia Residences Rama 9 Bangkok in collaboration with Banyan Group.
The rental program is exclusive to the units on the 10th and 11th floor.
There will be a guaranteed return of 5% for 5 years. For the first 15 years of the life of the development, the property will be managed by the hotel (i.e., Banyan Group). After 15 years, the owner can choose to take back the units for their own personal use or they can extend this lease by another 15 years.
The 1st 5 years will see owners getting a guaranteed return of 5% per annum. This effectively works out to 25% of the purchase price. For years 6-15, the units will be rented out by the hotel/ management. The owners will receive 90% of the profits.
There are also complimentary stays of 30 nights per year.
If you are looking for a condominium with steady returns, you may consider Cassia Residences Rama 9 Bangkok. The scheme looks attractive for investors who want security. This development is close to the Orange MRT Line which is still under construction and will be completed and operational around 2028. The line is already confirmed and construction is ongoing. In future, in about 3-4 years’ time, it will be about 350 meters to an MRT station in the heart of Bangkok.
Here is our walk from Cassia Residences Rama 9 to MRTA station:
If you want the price list for the available units, do contact the IBP Real Estate Sales Team:
The developer sentiment index for Greater Bangkok’s housing market fell for the second consecutive quarter in Q3, hitting its lowest level since Q3 2020.
Kamonpop Veerapala, president of Government Housing Bank and acting director-general of the Real Estate Information Center (REIC), reported the current situation index at 45.1, a 4.6-point drop year-on-year and 0.1 points lower than in Q2.
“The index has remained below the neutral threshold of 50 for seven consecutive quarters, signaling a continued decline in developer confidence in the residential sector,” he said.
The last time the index was this low was in Q3 2020, at 42.8 points, before rising to 46.3 in Q4 2020.
In Q3 2024, the most significant quarter-on-quarter decline was seen in sales sentiment, which dropped 6.6 points to 40.7, followed by a 0.2-point dip in investment sentiment, bringing it to 47.4.
Notably, revenue sentiment rose by 2.5 points to 42.0, and sentiment for new project launches increased by 1.6 points to 50.7.
Development costs sentiment increased 1.5 points to 40.4, while employment sentiment rose by 0.9 points to 49.6. However, except for new project launches, all other components remained below the neutral 50 mark.
The sentiment index for listed developers declined to 47.9, down from 52.2 in Q2 2024, reflecting reduced confidence and heightened concerns among listed firms, according to REIC.
Sales sentiment for listed developers saw the largest drop, falling 15.8 points to 43.8. Investment and new project launch sentiment both declined by 5.6 points to 52.1, while revenue sentiment decreased by 2.3 points to 47.7.
On the positive side, development costs sentiment rose by 3.1 points to 39.6, and employment sentiment edged up by 0.2 points to 52.1.
Looking ahead, the expectations index for the next six months rose to 51.6, slightly up from 51.4 in Q2 2024, signaling a positive outlook from developers for the near future.
The biggest improvement was seen in sales sentiment, which increased by 3.4 points to 57.8, followed by development costs, which rose by 2.9 points to 37.5.
Employment sentiment increased by 2.2 points to 52.4, and revenue sentiment grew by 2.0 points to 53.0.
However, there were declines in sentiment for new launches, which dropped by 6.3 points to 58.1, and investment, which decreased by 3.1 points to 51.0.
The Thai government is preparing to roll out 55 billion baht (approximately US$1.66 billion) in soft loans to stimulate the property sector and boost the national economy, according to Deputy Finance Minister Paopoom Rojanasakul.
This proposal will be presented to the cabinet for approval, Rojanasakul stated in a press briefing.
He added that the stimulus package would target both supply and demand within the real estate market, aiming to encourage both property developers and buyers, ensuring a wide-reaching impact.
The Deputy Minister emphasized that fresh stimulus measures are necessary as the current schemes have been fully utilised.
Recently, the Finance Ministry leveraged state financial institutions, including the Government Housing Bank (GH Bank), to support the real estate market. Earlier this year, GH Bank launched a low-interest loan program called “Happy Home,” offering a total of 20 billion baht in loans. This initiative provided flexible loan terms for low-income households, allowing for a maximum loan of 3 million baht per applicant, with a fixed interest rate of 3% for the first five years. However, this program has now reached its funding limit.
