by wilbersuen | Aug 13, 2024 | News
The number of new condominium launches in Greater Bangkok is anticipated to be below expectations this year, mainly due to subdued demand amidst an economic downturn, as reported by Colliers Thailand.
Phattarachai Taweewong, Director of Research at Colliers Thailand, highlighted that the condominium market in Greater Bangkok experienced a slowdown in the second quarter of this year, driven by sluggish economic growth in Thailand and a weakening global economy.
“The overall condominium market in Bangkok has decelerated, with a lack of significant demand drivers,” Mr. Phattarachai explained.
“In the mid to lower-end market segment, buyers are grappling with high household debt, elevated interest rates, and a high rate of mortgage rejections from banks.”
Colliers’ market analysis revealed that in the second quarter, 5,386 new condominium units were launched across 15 projects in Greater Bangkok, with a combined value of 35.6 billion baht.
Of these, approximately 1,000 units from four projects were in the high-end segment, located in inner-city areas, and achieved a sales rate of 65%. The remaining units, situated outside the city center, saw a sales rate of only 30%.
In total, the first half of 2024 saw 8,674 new condominium units launched in Greater Bangkok, with a combined value of 49.3 billion baht. This represents nearly a 50% decline compared to the 15,413 units launched in the same period last year.
Despite the significant drop in the number of units, the sales value for the first half of 2024 showed a slight increase from 48.6 billion baht in the first half of 2023. This was primarily due to the fact that the majority of units launched in the first half of 2023 were in the lower-priced segment.
Mr. Phattarachai anticipates that new condominium launches in Greater Bangkok will not exceed 25,000 units this year, falling short of the 30,000-35,000 units projected in the first quarter.
“Developers observed that sales in the second quarter did not meet expectations,” he said.
“Even with property tax incentives in place, the transfer of residential units is expected to decline this year compared to last year due to banks’ mortgage rejections.”
These incentives include reducing transfer and mortgage fees to 0.01% each, down from 2% and 1% respectively, for residential units priced below 7 million baht. These measures will remain effective until the end of this year.
As of the end of the first half of 2024, the condominium inventory in Greater Bangkok stood at approximately 56,800 units.
Given the current weak demand, it is estimated that it will take 84 months to clear this inventory, compared to 60 months under more favorable economic conditions, Mr. Phattarachai noted.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by Willie Tan | Aug 9, 2024 | News
Thailand’s comprehensive revamp of visa and entry regulations has elicited a range of reactions, from enthusiasm to confusion and some frustration. To shed light on the new rules, Naruchai Ninnad, Deputy Director-General of the Department of Consular Affairs at Thailand’s Ministry of Foreign Affairs, addressed questions during the Bangkok Post’s Deeper Dive vodcast.
Destination Thailand visa (DTV)
A key highlight is the introduction of the five-year Destination Thailand visa (DTV), which allows stays of up to 180 days, extendable to one year. However, eligibility is restricted to three specific categories.
The first category targets digital nomads or freelancers paid by employers outside Thailand. Naruchai explained, “You can work remotely in Thailand as long as your employer and income are based abroad. Documentation like a payslip or a letter from your employer is required.” The second category includes those relocating to Thailand for specific activities, such as Muay Thai training, cooking classes, medical treatment, or attending events. Applicants must provide proof, such as an appointment or event ticket. The third category covers individuals with spouses or children in Thailand, requiring proof of relationship. This visa can serve as an alternative to the category O spousal visa but must be renewed every six months and requires at least one exit from the country per year.
The DTV does not mandate health insurance but requires proof of at least 500,000 baht in assets, held anywhere globally. Naruchai stressed that qualifying for the visa also depends on fitting into one of the defined categories, not just financial capability.
He also clarified that the DTV cannot substitute the one-year retirement visa unless the applicant qualifies under a different category, and addressed concerns that the DTV might be seen as a cheaper alternative to the Elite visa, noting that each visa offers different benefits.
Another significant change is the expansion of countries eligible for visa-free entry from 57 to 93, including China and India. The entry stamp duration has been extended from 30 to 60 days, with an additional 30-day extension available at an immigration office. Naruchai noted that there’s no limit on the number of entries per year, and entrants must show access to at least 20,000 baht, though a return or onward ticket is only required upon request by immigration officials.
Visa on arrival
The number of countries eligible for a visa on arrival has also increased from 19 to 31, though this option is less favourable due to its 2,000 baht cost and 15-day validity. Naruchai emphasized that immigration officers would grant the most beneficial option, citing that Chinese citizens would receive a 60-day visa exemption over a visa on arrival.
Non-ED Plus visa
Additionally, a new Non-ED Plus visa has been introduced for the 40,000 foreign students at Thai universities pursuing Bachelor’s degrees or higher. This visa allows for a one-year stay after graduation to seek employment in their field. Those already in Thailand on an ED visa and who meet the ED Plus criteria will automatically be upgraded, eliminating the need for a re-entry permit.
Despite these updates, other visas and the controversial 90-day reporting requirement remain unchanged. However, the health insurance requirement for the retirement and spousal visas has been reduced from 3 million baht to 400,000 baht.
Regarding concerns about foreign criminals, Naruchai assured that security measures remain robust. While pre-screening for the 97 countries may not occur before entry, arrivals will still undergo security checks using the same database. Recent incidents involving foreign criminals and corrupt immigration officials have highlighted these issues, but strict regulations and screenings aim to ensure security while avoiding undue burdens on law-abiding expats.
Source: Asean Now
by Willie Tan | Aug 9, 2024 | News
Hyundai Motor Company, the South Korean automaker, has announced a 1 billion baht (US$28 million) investment to establish an electric vehicle (EV) and battery assembly facility in Thailand, as reported by the country’s Board of Investment (BOI) on Wednesday.
Currently, Chinese automakers such as BYD (Build Your Dreams) and Great Wall Motors dominate Thailand’s rapidly growing EV market, using the country as a key manufacturing base to supply vehicles across Southeast Asia.
The new Hyundai factory, which will be located southeast of Bangkok, is scheduled to commence production in 2026, according to a statement from the BOI.
BOI Secretary General Narit Therdsteerasukdi noted that Thailand’s well-established supply chain will enable Hyundai to source at least one-third of its raw materials and components locally, further bolstering the domestic industry.
As EV sales surge across Southeast Asia, led by BYD, they are increasingly capturing market share from the internal combustion engine vehicles long dominated by Japanese and Korean manufacturers. In the first quarter, Thailand, Southeast Asia’s largest automotive manufacturing hub, accounted for 55% of the region’s EV sales, according to Counterpoint Research.
Source: Bangkok Post
by wilbersuen | Aug 6, 2024 | News
The Ministry of Tourism and Sports aims to attract at least 1 million Japanese tourists to Thailand by the end of this year, an official has stated.
Polphum Wipatphumiprathet, an aide to Tourism and Sports Minister Sermsak Pongpanich, mentioned on Sunday that the ministry is actively seeking ways to increase Japanese tourist numbers and plans to discuss enhancing tourism cooperation with relevant Japanese authorities.
Mr. Polphum highlighted that Japan, with a population of 124 million and being the world’s fourth-largest economy, represents a significant market. Japanese tourists are also regarded as high-quality visitors.
“Japan is a crucial tourist market that we must sustain and expand,” Mr. Polphum stated during his visit to the Tourism Authority of Thailand’s office in Japan.
Last year, around 800,000 Japanese tourists visited Thailand, and the ministry aims to increase this figure to 1 million by the end of this year. Achieving this target is expected to contribute to the ministry’s goal of generating 3.5 trillion baht in tourism revenue.
From January to June this year, out of 17.5 million foreign arrivals, 470,789 were Japanese tourists. The top five foreign arrivals during the first half of the year were from China (3.43 million), Malaysia (2.43 million), India (1 million), South Korea (934,983), and Russia (920,989).
Mr. Polphum emphasized that tourists prioritize safety, hygiene, and convenience. The ministry is committed to developing and promoting tourism to attract more international visitors, thereby boosting the country’s economic growth.
Source: Bangkok Post
Yours sincerely,
The editorial team at Invest Bangkok Property
by wilbersuen | Jul 30, 2024 | News
The State Railway of Thailand (SRT) is set to launch the first train on the Northeast dual-track route on Sunday, July 28. This route extends from Mab Kabao to Muak Lek stations in Saraburi province, covering a distance of 13.2 kilometers.
This section is part of the larger 42.9-kilometer dual-track route that runs from Mab Kabao to Khlong Khanan Chit station in Nakhon Ratchasima province. Pichet Kunadhamraks, the director-general of the Department of Rail Transport, shared this development.
The inaugural train will pass through the Pha Sadet tunnel, situated between Mab Kabao and Hin Lab station. The dual tunnel is notable for its dimensions: 7.5 meters wide, 7 meters high for each side, and 5.41 kilometers long, making it the longest railway tunnel in Thailand.
Between Hin Lab and Muak Lek stations lies the Hin Lab tunnel. This double-track tunnel is 11 meters wide, 7.3 meters high, and stretches 265 meters long. It further enhances the efficiency and safety of the route.
Pichet highlighted that the Pha Sadet tunnel is fully equipped with essential safety equipment, including ventilation and lighting systems, a supervisory control and data acquisition system, fire extinguishers, CCTV surveillance, emergency telephones, and backup generators. The tunnel also features sensors that detect unauthorized personnel, heat, and levels of oxygen, carbon monoxide, and sulfur dioxide, adhering to the National Fire Protection Association 130 standard for transit and passenger rail.
There are 11 cross passages between the tracks in the Pha Sadet tunnel, located every 500 meters. These passages are designed to facilitate the evacuation of passengers in the event of an accident or other emergencies.
“The two new tunnels will help cut travel time to the northeastern region by rail by about 20 minutes,” Pichet stated. This improvement is a significant step towards enhancing the efficiency of Thailand’s railway network.
The entire route, from Saraburi to Nakhon Ratchasima, terminating at Thanon Chira junction, covers a total distance of 134 kilometers. It is scheduled to be fully operational by 2025, marking a new era in Thai rail transport.
With these advancements, Thailand is poised to offer faster, safer, and more efficient rail travel, benefiting both residents and tourists. The launch this Sunday is just the beginning of an exciting journey towards modernized rail infrastructure in the country.
Source: The Nation
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The editorial team at Invest Bangkok Property
by Willie Tan | Jul 25, 2024 | News
Thai Interior Minister Anutin Charnvirakul has called for an urgent investigation into the source of a Bangkok billboard advertising the sale of passports and nationalities. The billboard was located in the Huai Khwang district of Bangkok. This investigation aligns with Mr. Anutin’s broader strategy to crack down on crime hubs and bolster the country’s reputation and public trust.
Ministry spokeswoman Traisulee Traisaranakul announced on July 22 that Mr Anutin had been informed about social media posts criticising the Chinese-language billboard, which advertised the sale of passports and nationalities from several countries.
Mr. Anutin, who also serves as Deputy Prime Minister, ordered the immediate removal of the billboard and a thorough investigation. Should any illegal activities be discovered, the investigation will expand to identify and penalise those responsible. The billboard had been taken down as of press time.
Ms Traisulee emphasised that while the government is implementing policies to facilitate easier entry for tourists, there must be stricter screening to prevent criminals from using Thailand as a base for illegal activities. “Since easing visa regulations for several countries, Anutin has directed provincial governors and local administrative bodies to work with police and security agencies for stringent inspections and monitoring,” she said. “This is to prevent Thailand from becoming a hub for criminal activity, which could harm the country’s image, tourism confidence, and long-term investments.”
Mr. Wiroj Lakkhanaadisorn, an MP from the Move Forward Party, expressed concern, stating that the billboard represents a severe legal breach. “If true, it signifies a blatant disregard for Thai authorities. The billboard in Huai Khwang, where many Chinese nationals reside, suggests it targeted them. This could mean our country is becoming a centre for global threats,” Mr Wiroj said.
He added that such incidents damage the country’s reputation and could attract international criminals. If verified, authorities should pursue legal action. He also noted the possibility of the Chinese mafia and criminals with arrest warrants using Thailand as a haven. “Rumors suggest a network of Chinese criminals uses Thailand as a hideout before moving to other countries. This network seems well-organised, with the ability to bribe officials and turn Thailand into a hub for illegal activities,” Mr Wiroj added.
The billboard featured a prominent message in Chinese, first noticed by a Facebook user who used Google Translate to interpret it. The advertisement offered a legal passport and nationality within 30 days, including a price list for passports from Indonesia, Vanuatu, Cambodia, and Turkey. After gaining social media attention, the billboard was removed by 10 am on July 22.
Mr. Paitoon Ngammuk, director of the Huai Khwang district, confirmed that an initial investigation report has been received, and further detailed inspections will follow. Convicted individuals face penalties, including imprisonment and/or fines. Meanwhile, deputy immigration chief Panthana Nuchanart stated that while some countries sell nationalities, this practice is strictly forbidden in Thailand. Investigators will determine if any illegal activities occurred. Preliminary findings suggest the billboard advertised the sale of other nationalities, not Thai, using Thailand as the advertising venue. Nonetheless, thorough checks will be conducted to ensure no national security breaches.
