by wilbersuen | Apr 22, 2024 | News
The real estate scene in Thailand is undergoing significant transformations.
Thailand’s commercial real estate sector is gearing up for a strong performance in 2024, buoyed by positive developments and strategic moves. According to JLL, as cited by Hospitality Net, the industry is expected to display resilience, driven by the country’s recovering tourism sector, burgeoning manufacturing industries, and a focus on prime assets in key sectors. This optimism stems from promising statistics from 2023, including a 66 percent year-on-year increase in investment in targeted manufacturing sectors and a 152 percent surge in tourist arrivals.
Adding to this promising outlook, Bangkok Post reports an influx of new property offerings from 10 world-class mixed-use development projects in Bangkok’s central business district (CBD). Michael Glancy, country head at JLL, believes these projects will position Bangkok as a hub for some of the finest and most cost-effective commercial real estate in the Asia-Pacific region.
Over the next four years, Bangkok is set to see a significant rise in grade A office spaces, premium retail malls, luxury condominiums, and upscale hotels, contributing significantly to the trend of seeking high-quality properties.
Further fueling this upward trend, Colliers notes that despite a surge in new office spaces, demand increased to 176,000 square meters in 2023. The total office supply reached 9.89 million sqm, with an additional 1.3 million sqm expected in the next three years. This suggests a healthy balance between supply and demand in Thailand’s real estate market, prompting landlords to adjust their rental offerings and developers to proceed cautiously with future large-scale projects.
Thailand’s real estate excellence was also showcased at the 18th PropertyGuru Asia Property Awards Grand Final 2023, where Thai developers and projects received prestigious honors. Andaman Asset Solution was recognized as the Best Boutique Developer (Asia), while KingBridge Tower by KingBridge Tower Company Limited won multiple awards, including Best Office Development (Asia), Best Office Architectural Design (Asia), and Best Office Interior Design (Asia). Additionally, Rawayana by Phuket9 secured awards for Best Mixed-Use Architectural Design (Asia) and Best Commercial Landscape Design (Asia).
Overall, Thailand’s real estate market is on a remarkable path toward growth and innovation. With a revitalizing tourism sector, the arrival of high-quality mixed-use developments, and strategic policy initiatives, Thailand’s real estate market is positioned as a leading player in the Asian region, ready to tackle the challenges of a volatile global macroeconomic landscape.
Source: PropertyGuru
Yours sincerely,
The editorial team at Invest Bangkok Property
by wilbersuen | Apr 19, 2024 | News
Thailand is poised to experience growth of slightly over 4% this year, primarily driven by newly approved measures aimed at revitalizing the property sector, as announced by the finance ministry. The initiatives are anticipated to generate around 800 billion baht (equivalent to approximately S$29.6 billion) in property transactions, over 400 billion baht in investments, and 120 billion baht in consumption, according to Pornchai Thiraveja, head of the fiscal policy office within the ministry.
Thiraveja stated during a briefing that these measures would contribute to economic growth exceeding 4% for the year, with the stimulus expected to boost growth by 1.7-1.8 percentage points. Lavaron Sangsnit, the ministry’s permanent secretary, emphasized the continued necessity of using fiscal policy to stimulate the economy, expressing hope for a return to appropriate growth levels.
Thailand’s economy, the second-largest in Southeast Asia, expanded by 1.9% in the previous year, a deceleration from the 2.5% growth recorded in 2022. Prime Minister Srettha Thavisin highlighted the urgency of significant stimulus measures, coinciding with the government’s plans to implement a delayed flagship “digital wallet” handout scheme worth 500 billion baht in the final quarter of 2024 to bolster consumption.
The recently approved property measures include reduced transaction fees for houses valued up to 7 million baht, with cuts to ownership transfer and mortgage registration fees to 0.01%, down from 2% and 1%, respectively. Additionally, the government will provide home loans totaling 30 billion baht from state banks, offer tax breaks for select property developers, and grant tax deductions of up to 100,000 baht for individuals intending to construct their homes.
Deputy Finance Minister Krisada Chinavicharana noted that the Cabinet has tasked relevant agencies with exploring potential relaxation of regulations concerning foreign ownership of Thai property. Furthermore, the ministry intends to request the central bank to ease loan-to-value (LTV) rules for property, aligning with Srettha’s previous suggestion of removing such restrictions.
Source: The Business Times
Yours sincerely,
The editorial team at Invest Bangkok Property
by wilbersuen | Apr 18, 2024 | News
The revision of the land and building tax law aims to boost revenue by improving collection efficiency and establishing appropriate tax rates, while also tightening criteria to close tax loopholes, according to Lavaron Sangsnit, the finance permanent secretary.
Lavaron stated that the land and building tax law, which has been operational for five years, necessitates periodic reviews every five years to address implementation issues. Initially, the criteria were not overly strict, particularly for vacant land, which typically incurred higher tax rates compared to residential, agricultural, or commercial/industrial land.
However, Lavaron noted that some owners of vacant urban land avoided higher tax rates by planting fruit trees like limes, claiming agricultural status with the lowest tax rate. This strategy now obligates owners to pay agricultural land tax rates, whereas previously, no tax was levied on such land.
Determining vacant land status falls under the jurisdiction of local administrative organizations responsible for tax collection. Vacant land, legally defined, refers to land not utilized to its fullest potential. Lavaron emphasized the principle that landowners should derive benefits from the land exceeding the tax imposed.
He emphasized the gradual tightening of tax collection criteria in the future, as current levies remain relatively low. Tax rates should increase over time, with adjustments based on appropriate timing and circumstances, according to Lavaron. While the law specifies minimum rates, local administrative organizations can increase them, but not below the legal limit.
The land and building tax replaced the house and land tax and the local development tax, resulting in slightly higher revenue collection after deductions expired, and full rates were enforced. The current system bases property tax on land appraisal values multiplied by respective tax rates, unlike the previous house and land tax, which used annual rental values multiplied by a fixed rate of 12.5%.
Lavaron mentioned that certain properties like department stores may face higher tax levies, while others could have lower rates than before. This system is deemed fairer as it applies the same tax rate universally, without reliance on tax collectors’ discretion.
Source: Bangkok Post
Yours sincerely,
The editorial team at Invest Bangkok Property
