by Daryl Lum | Jul 19, 2024 | Bangkok Property Market Updates
Prime Minister Srettha Thavisin delivered a keynote speech at the Finance Ministry’s “Ignite Finance” initiative on Friday, a part of his “Ignite Thailand” vision to establish the country as a global financial centre.
The “Ignite Finance” initiative aims to elevate Thailand on the global financial stage with a strategic focus on banking, securities, derivatives, digital assets, and insurance. It seeks to expand financial access for underserved communities and small businesses, promoting inclusive economic growth.
The initiative is built on three main pillars:
1) Future-Ready Regulation: The Finance Ministry emphasized the need for a flexible, transparent regulatory environment that supports investment. A proposed bill aims to consolidate regulations into a unified system, streamlining processes for businesses within the financial sector.
2) Next-Generation Incentives: “Ignite Finance” seeks to position Thailand as an attractive destination for financial institutions by embracing policies that facilitate foreign companies, including work visas, competitive tax structures, and strategic incentive programs.
3) Empowered Ecosystem: The initiative will develop an advanced and transparent legal framework to support financial activities, building on Thailand’s pioneering digital asset laws. It also emphasizes modern infrastructure to support businesses and improve the quality of life for their employees, fostering continuous growth and innovation within the ecosystem.
by Daryl Lum | Jul 18, 2024 | Bangkok Property Market Updates, Developer Watch, Investment Analysis
SET-listed developer Sansiri is preparing for a challenging market in the second half of the year by securing bank loans totaling 15 billion baht, aiming to boost foreign demand and launch high-end projects.
Uthai Uthaisangsuk, president of Sansiri, noted a slowdown in the residential market as demand in the middle to low-end segments weakened due to various negative factors affecting mortgage approvals.
“Developers should be more cautious about their financial status in the second half as this trend continues,” he said. “While GDP is expected to grow by 2.5% in the next six months, its positive impact on the residential market will be seen 6-12 months later.”
Mr. Uthai announced that the company has secured 15 billion baht in bank loans, including 10 billion from Siam Commercial Bank and 5 billion from Kasikornbank (KBank), for new projects this year without needing to show the project’s presales rate.
KBank is supporting new projects in Pattaya, Charoen Nakhon, and Pathum Thani.
This year, Sansiri plans to launch 46 new projects worth a combined 61 billion baht, the largest in the industry. In the first half, it launched 20 projects worth over 22 billion baht and recorded 25 billion baht in presales.
Of the first-half presales, 4 billion baht came from foreign buyers, primarily Chinese. The company aims to achieve 7 billion baht in presales by year-end, up from 6.1 billion in 2023. The overseas market, especially Chinese buyers, will be the company’s focus for the remainder of the year.
In the second half, 26 new projects worth 38 billion baht are set to launch, targeting 27 billion baht in presales for an annual total of 52 billion, up from 49 billion baht in 2023. Of the new launches, 20 projects worth 34 billion baht will cater to the middle to upper-end segments, while six projects worth 4.5 billion baht will target the lower-priced segments.
Fourteen projects will be single detached houses and mixed products with duplexes and townhouses, while 12 will be condo projects. No single project will consist solely of townhouses, Mr. Uthai said.
“Buyers in the luxury segment have no issues with borrowing or purchasing, but given the current sentiment, they may delay making decisions,” said Sriamphai Rattanamayoon, chief marketing officer. She added that the market was competitive in the first half, but the company met its sales targets.
In challenging market conditions, homebuyers typically prefer reliable brands with excellent after-sales services, Ms. Sriamphai said. Other strategies to attract homebuyers include offering attractive clubhouse and home features, as well as special-focus projects like pet-friendly condos or low-rise houses with larger outdoor spaces and pet parks in common areas.
by Daryl Lum | Jul 17, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
The Immigration Bureau (IB) is implementing measures to ensure that immigration control at airports will take no longer than 45 seconds per person. This initiative supports the government’s expanded visa-free scheme for foreign visitors, which was launched on Monday.
Pol Maj Gen Phanthana Nutchanart, the IB deputy chief, announced on Tuesday that the bureau is prepared to align with the government’s policy. To alleviate long queues at immigration check-in booths during peak hours, the number of immigration officials will be increased.
“Our goal is to ensure that each arriving passenger will clear immigration within 45 seconds,” stated Pol Maj Gen Phanthana. He also mentioned that airports are incorporating biometric technology to enhance security against transnational criminals.
Furthermore, Section 38 of the Immigration Act mandates that house owners, heads of households, landlords, or hotel managers who accommodate foreign visitors must report their presence to immigration authorities within 24 hours of their arrival. This allows immigration authorities to monitor foreigners staying in the country.
The expanded visa-free scheme now allows citizens from 93 countries and territories to enter the kingdom without a visa, up from 57 previously. The details of this expansion were published in the Royal Gazette on Monday, and those arriving under this scheme can stay in the country for up to 60 days.
Prime Minister Srettha Thavisin assured that the immigration police and security authorities have made the necessary arrangements to accommodate this policy. “I believe the scheme will bring long-term benefits,” he remarked.
The Ministry of Interior spearheaded the expansion of the visa-free scheme, which includes extending the list of visa-exempt countries, increasing the number of countries eligible for visas on arrival, introducing the new Destination Thailand Visa (DTV) for remote work and tourism, and extending stay durations for foreign students seeking employment post-graduation.
The DTV permits foreigners to stay in Thailand for up to 180 days at a time for tourism and remote work purposes. This multiple-entry visa is valid for five years. Eligible individuals include remote workers, also known as digital nomads or freelancers, and those participating in activities such as Muay Thai courses, Thai cooking classes, sports training, medical treatment, seminars, and music festivals. Spouses and dependent children of DTV holders are also included.
by Daryl Lum | Jul 16, 2024 | Bangkok Property Market Updates
Chalerm Yoovidhya, co-owner of Red Bull, now leads Thailand’s richest family, according to the latest Forbes list, overtaking the Chearavanont brothers. Despite this, the total wealth of Thailand’s 50 richest families has declined by 15%.
Forbes Asia reported on Wednesday that the Yoovidhya family increased their fortune by USD 2.6 billion (95.8 billion baht), reaching USD 36 billion (1.3 trillion baht). Red Bull’s revenue surpassed USD 11 billion (405.5 billion baht) last year, with global sales exceeding 12 billion bottles and cans.
The Chearavanont brothers, known for the Charoen Pokphand Group, fell to second place after nearly a decade at the top. Their wealth decreased from USD 34 billion (1.2 trillion baht) last year to USD 29 billion (1.1 trillion baht) this year, partly due to the declining value of their stake in Ping An Insurance in China, which reported a USD 2.7 billion (99.5 billion baht) loss last year.
Charoen Sirivadhanabhakdi of Thai Beverage remains in third place with an estimated wealth of USD 10 billion (368.6 billion baht), down USD 3.6 billion (132.7 billion baht) from last year.
The Chirathivat family holds the fourth position with USD 9.9 billion (364.9 billion baht), a 20% decrease from USD 12.4 billion (457.1 billion baht) last year. The family’s Central Group became the major shareholder in London’s Selfridges department store after raising its shareholding in November.
Energy and telecom tycoon Sarath Ratanavadi retains fifth place with USD 9.2 billion (339.1 billion baht), down from USD 11.3 billion (416.5 billion baht) last year.
Somphote Ahunai, CEO of Energy Absolute, saw his wealth drop by two-thirds to USD 995 million (36.7 billion baht), falling to 32nd place. His shares in the renewable energy and electric vehicle company declined due to debt concerns.
The combined wealth of “Thailand’s 50 Richest” fell by nearly 12% to USD 153 billion (5.6 trillion baht), attributed to a declining Stock Exchange of Thailand index and the depreciation of the baht, Forbes Asia stated. The full list is available at www.forbes.com/thailand.
by Willie Tan | Jul 15, 2024 | Bangkok Property Market Updates, Expat Living & Relocation
Prime Minister Srettha Thavisin announced on Sunday that he will sign an extension to the visa waiver on Monday, allowing citizens from 93 nations to enter Thailand without a visa or obtain a visa on arrival and stay for up to 60 days.
He expressed confidence that immigration and security agencies will smoothly implement the measures to screen foreign arrivals in the long term. “We prepared for visa waivers for travellers from China, India, and Kazakhstan with measures implemented last year,” he added.
To boost tourism and attract more tourist dollars, the Cabinet decided on May 28 to extend visa waivers to a total of 93 nations.
The 57 nations or regions that already had a visa waiver and can now receive a 60-day stamp on arrival include: Canada, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Indonesia, the Republic of Ireland, Israel, Italy, Japan, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Maldives, Mauritius, Monaco, the Netherlands, New Zealand, Norway, Oman, the Philippines, Poland, Portugal, Qatar, San Marino, Singapore, Slovakia, Slovenia, Spain, South Africa, South Korea, Sweden, Switzerland, Turkey, Ukraine, the United Arab Emirates, the United Kingdom, the United States, Peru, Hong Kong, Vietnam, Saudi Arabia, Andorra, Australia, Austria, Belgium, Bahrain, Brazil, and Brunei.
The 13 nations whose citizens previously received a 30-day stamp on arrival and will now receive a 60-day stamp are India, Kazakhstan, Malta, Mexico, Papua New Guinea, Romania, Uzbekistan, Taiwan, Bhutan, Bulgaria, Cyprus, Fiji, and Georgia.
The six new nations or regions whose citizens now qualify for a visa waiver and a 60-day stay are China, Laos, Macau, Mongolia, Russia, and Cambodia.
The 17 new nations eligible for visas on arrival, receiving a 60-day stamp, include Guatemala, Jamaica, Jordan, Kosovo, Morocco, Panama, Sri Lanka, Trinidad and Tobago, Tonga, Uruguay, Albania, Colombia, Croatia, Cuba, Dominica, the Dominican Republic, and Ecuador.
by Daryl Lum | Jul 9, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development, New Launches & Project Previews
The State Railway of Thailand (SRT) has announced the commencement of a new international train service connecting Bangkok to Vientiane, Laos, starting July 19. This extension of the existing Bangkok-Nong Khai route will depart from Krung Thep Aphiwat Central Terminal Station at 9:25 PM on July 19, arriving at Vientiane’s Khamsavath station at 9:05 AM the following day.
Upon arrival, passengers can access public transportation options, including vans and taxis, to reach downtown Vientiane, which is approximately 7-9 kilometers away. Notable attractions such as the Patuxai war monument are easily accessible, and travelers can also connect to the high-speed Laos-China railway at Vientiane Railway Station for further travel within Laos or to China.
Ticket prices for a one-way journey from Bangkok to Vientiane are expected to start at around 300 baht for third-class fan seats, with a travel time of approximately 10 hours.
Ekkarat Sriarayanpong, head of the SRT governor’s office, previously disclosed that discussions were held with the Lao National Railways to facilitate the launch of this service and to enhance tourism and logistics between the two nations. The SRT has also provided training to Lao railway officials in areas such as train operations, station management, and ticket sales.
A successful trial run of the service was conducted on May 21, covering stations at Udon Thani, Nong Khai, Thanalaeng, and Vientiane. Ekkarat highlighted the exceptional cooperation between Thailand and Laos in bringing this new service to fruition.
by Daryl Lum | Jul 8, 2024 | Bangkok Property Market Updates
A property research firm suggests that the Thai government should ensure housing affordability for Thais and limit foreign ownership of condos to specific zones, even within a single province, to avoid opposition.
Vichai Viratkapan, acting director-general of the Real Estate Information Centre, proposed that Thailand might adopt measures similar to Singapore, emphasizing home affordability for its citizens.
“Despite its small size, Singapore welcomes foreign investors due to several policies and measures ensuring its citizens can afford homes. They have never feared foreign property ownership,” he said.
These policies include public housing development with units sold at subsidized prices to a broad segment of the population. Singapore also has a Central Provident Fund, funded by both employees and employers, which can be used for down payments and monthly mortgage payments.
Additionally, the country offers various housing grants and subsidies to make housing more affordable for different groups, providing financial assistance to lower and middle-income families for purchasing their first home.
To prevent speculative buying and maintain housing affordability, Singapore employs cooling measures such as stamp duties for multiple property owners and foreigners, and tightening loan-to-value limits.
“Singaporeans are not worried about owning a home, but they are concerned about long queues,” said Mr. Vichai. “While allowing foreigners to buy units, they limit each nationality to a certain percentage to prevent domination.”
However, some property analysts argue this approach might not be suitable for Thailand due to its vast land available for condo development, allowing foreigners to spread out rather than clustering in one area.
To ensure housing affordability for Thais if the foreign ownership quota for condos is increased to 75%, property associations suggest limiting this extension to specific zones, such as districts in Bangkok, Phuket, and Pattaya. They also recommend that revenue from taxes or fees collected from foreign buyers be allocated to a housing fund to help low and middle-income Thais secure mortgages with 0% interest rates for the first three years, serving as a loan guarantee.
“Increasing purchasing power from foreign buyers might be necessary amid weak local demand, but Thai affordability must be prioritized,” said Mr. Vichai.
by Daryl Lum | Jul 5, 2024 | Bangkok Property Market Updates
The foreign ministers of Singapore and Thailand have confirmed that enhanced collaboration between their civil services will strengthen bilateral relations and promote regional growth.
Speaking at the 14th Civil Service Exchange Programme (14th CSEP) on Wednesday, co-hosted by the foreign affairs ministries of both countries, they emphasized the importance of exchanging knowledge and best practices among civil service officers.
They underscored that joint efforts among these agencies would fortify their relationship and contribute to regional development and ASEAN stability.
Vivian Balakrishnan, Singapore’s foreign affairs minister, remarked that the current global landscape is more fragmented than when the CSEP was first established, citing the Russia-Ukraine war, the Hamas-Israel conflict, tensions in the Pacific and South China Sea, and the US-China rivalry—both of which are crucial partners for Singapore and Thailand.
In addition to these geopolitical issues, there is also growing domestic and political resistance to free trade and a liberal economic model worldwide.
Despite these challenges, both Southeast Asian nations have experienced significant economic progress over the past six decades, with maturing GDP growth rates and economies, Balakrishnan noted.
However, he stressed that the traditional economic growth strategies and forms of collaboration are insufficient to address the current global disruptions. Therefore, he proposed that Thailand and Singapore collaborate to address global conflicts and advocate for free trade, charting a unified course for ASEAN.
“We need Singapore and Thailand to also make common cause in this new world that is emerging,” he added.
Maris Sangiampongsa, Thailand’s foreign affairs minister, highlighted that Singapore is a key trading partner and the second-largest investor in Thailand.
Over 60 years of bilateral relations, both countries have pursued common goals of mutual peace and security for ASEAN, leading to the establishment of the bloc in 1967.
“Next year marks the 60th anniversary of Singapore-Thailand bilateral relations. We eagerly anticipate an official visit by the president and prime minister of Singapore to Thailand,” he said.
by Daryl Lum | Jun 28, 2024 | Bangkok Property Market Updates, Legal, Tax & Due Diligence
Thailand has announced a 7% value-added tax (VAT) on imported goods priced under 1,500 baht (approximately USD 40.93) effective from July to December, according to a finance ministry representative on Friday, June 21.
Currently, imported goods under 1,500 baht are exempt from VAT in Thailand.
Post-December, legislation will be updated to enable the revenue department to maintain the VAT collection on these items, the official informed Reuters.
In February, Deputy Finance Minister Julapun Amornvivat highlighted that low-cost Chinese imports, previously exempt from customs duties and VAT, were adversely affecting local manufacturers.
Prime Minister Srettha Thavisin has also pointed out that there have been instances of false declarations for low-cost Chinese products in free trade zones to evade VAT, which he believes should be enforced.
by Daryl Lum | Jun 25, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
Thailand is considering Bangkok and Pattaya as potential venues for hosting a Formula 1 race, aiming to enhance sports tourism within the country.
Prime Minister Srettha Thavisin announced on Sunday that U-Tapao Airport, Pattaya, and Bangkok are being evaluated as candidate locations for the prestigious event.
In a post on X following his visits to U-Tapao Airport in Rayong and Jomtien Beach in Pattaya, he examined the feasibility of these sites for Thailand’s first-ever Formula 1 race, contingent on approval from the race organizers.
“As we pursue our Formula 1 ambitions, the U-Tapao Airport Project includes a facility designed for the ‘circuit race’ type, ensuring maximum safety,” he wrote. “Meanwhile, Bangkok and Pattaya are being considered for ‘city race’ types, featuring the allure of the City of Angels and picturesque beachside routes.”
During a visit to Italy in May, the prime minister expressed his hopes for constructing a race track near U-Tapao Airport.
Thailand is in competition with South Korea and Indonesia to secure another Asian venue for Formula 1.
He stated that Thailand is prepared to build the circuit by 2027 or 2028 if selected as the next Asian host.
Singapore currently uses its city streets to host the Singapore Grand Prix.
by Daryl Lum | Jun 24, 2024 | Bangkok Property Market Updates, Legal, Tax & Due Diligence
The government is considering increasing the allowable foreign ownership in condominiums from 49% to 75% of a building’s usable space, Deputy Prime Minister Phumtham Wechayachai announced.
The Ministry of Interior has also been tasked with evaluating the potential extension of property leaseholds for foreigners from 50 years to 99 years, Phumtham informed the press on Friday.
This initiative was initially proposed during a cabinet meeting in April, as part of the government’s efforts to boost the economy and attract foreign investment.
Local property industry leaders have been advocating for a revision of the foreign ownership cap, citing growing demand from international buyers.
Concurrently, high household debt levels and stricter lending conditions have dampened property demand among local buyers, prompting developers to proceed with caution.
According to the Real Estate Information Centre (REIC), the number of land allocation permits nationwide fell by 19.7% in the first quarter of this year, marking the largest decline in nine quarters, as developers adapted to consecutive drops in low-rise house transfers.
The REIC has highlighted that foreign ownership quotas for condos in popular destinations like Phuket and Pattaya are fully occupied in several projects.
“Certain areas do not attract domestic buyers, so increasing foreign ownership quotas in those regions could stimulate the economy, as the condo market there relies heavily on foreign demand,” said Vichai Viratkapan, acting director-general of the REIC.
Some projects have responded by setting aside units for leasehold contracts, priced 10-15% lower than freehold units, to cater to the predominantly foreign buyers.
In 2023, foreign condo transfers totaled 14,449 units, a 25% increase from the previous year, with transaction value rising by 23.5% to 73.1 billion baht, surpassing pre-pandemic levels, according to the REIC.
Chinese buyers led the market, accounting for 45.8% of the units transferred and 46.7% of the total value, followed by buyers from Russia, the United States, and Myanmar.
by Daryl Lum | Jun 17, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
The prospect of train travel between Bangkok and Beijing is becoming more tangible as Thailand advances its rail network expansion.
According to the State Railway of Thailand, a trial service between Bangkok and Vientiane, the capital of Laos, is scheduled for July 13-14. Once operational, this new link will enhance transportation between Thailand, Laos, and China, as stated by railway official Ekarat Sriarayanphong.
The inauguration of the Thailand-Laos connection will enable train travel from Bangkok to Beijing, with stops in Vientiane and Kunming, a city in southern China. From Kunming, travelers can board a semi-high-speed train to Beijing.
Covering approximately 3,218 kilometers, the journey will take nearly a full day due to the region’s mountainous terrain. In contrast, a direct flight takes just under five hours.
Currently, a high-speed train between China and Laos facilitates the transport of Thai goods to Kunming, significantly reducing delivery times from two days by truck to 15 hours, as reported by Nikkei.
Thailand aims to strengthen its connectivity with China, its largest trading partner, to stimulate economic growth, which has been lagging behind other regional economies.
From January to November 2023, Thailand’s exports to China reached nearly USD 32 billion (SGD 43 billion), with key exports including fruit and rubber products. Imports from China during the same period were valued at USD 65.3 billion, dominated by electric equipment and machinery.
In addition to trade, the two countries are enhancing tourism ties. Chinese visitors can stay in Thailand visa-free for up to 60 days, while Thai tourists can visit China visa-free for 30 days.
The tourism sector is expected to receive a further boost from a separate, albeit delayed, project to establish a high-speed rail system linking Thailand to China through Laos by 2028.
