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Real Estate Market in Thailand

Real Estate Market in Thailand. 17 May 2006 Royal Thai Embassy Washington D.C. RE Market in Thailand. Thailand RE Market in 2005/2006 Government Policy and Measures Joint Ventured Investment Projects Long-Stay How to own property in Thailand

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Real Estate Market in Thailand

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  1. Real Estate Market in Thailand 17 May 2006 Royal Thai Embassy Washington D.C.

  2. RE Market in Thailand • Thailand RE Market in 2005/2006 • Government Policy and Measures • Joint Ventured Investment Projects • Long-Stay • How to own property in Thailand • International Real Estate Federation (FAIBCI) 57th World Congress

  3. Real Estate Market Overview 2005 • Housing Market in Bangkok areas increased 12% • New house increased 4% • Office building in 30 strategic provinces decreased slightly 2006 • RE Market is expected to continue to grow • Main factor : RE development in the provinces

  4. House/Housing market in 2005/2006 • 2005 :Supply of houses increased in every area • 2005 :Supply of single house/town house : 30 strategic provinces • 30 strategic provinces decreased 9.7% • Other provinces continue to increase • High Housing Building in 30 strategic provinces • Licenses increased 69% (3,131 buildings) • Construction area decreased 38% • 4,079 Sq.m. To 1,252 Sq.m.

  5. House/Housing market in 2005/2006 (Continue) • Office Building Market 2005 • Licenses increased 50%, building areas decreased 50% in 30 provinces • No licenses in the North, South and Central • Commercial Building Market 2005 • Licenses increased 3%, building areas decreased 11% in 30 provinces • Number of buildings increased in North, Northeast, South

  6. Outlook for RE Market in 2006 • Continue to expand • Jan-Feb 2006 : housing supply increased 10% • Pattaya, Sriracha, Phuket will stimulate overall market • Opportunities for new small and medium investor/companies • Marketing strategy 2006 : focus on middle-range housing (1-3 mb./25,000-75,000 US$) • Market for high price housing(10mb./2.5mUS$) will slow down

  7. Factors of RE Market in 2006 • Oil price • High inflation rate • Increase of interest rate • Liquidity of financial institutions • Political situation • Others

  8. Positive Factors • All economic/business sectors continue to grow • Agricultural commodities price is improving • Expansion of secondary house resale market • Baan Eur Athorn Programme : 200,000 units

  9. Government Policy & Measures • To support the new home market • To promote secondary home resale market • To encourage private firms to build low price houses (600,000 b/15,000 US$) : get BOI privilege

  10. Joint-Venture Investment projects with Foreign Partners • Noble Development Co.Ltd.: Europe, Japan Develop retails area : 10,000 Sq.m.: 2bB/50 mUS$ • TCC Land Co.Ltd. : Capital Land Group :Singapore TCC Capital Land : projects : 6,000 mB/150 mUS$ Sale volume 10,000 mB/250 m US$ • Supalai Group : 7 new projects in 2006

  11. Long-stay in Thailand • Stay at least one year • Non-Immigrant O-A visa • 50 years old • Rent houses/condominiums or buy condominiums • Coordinating agency : Tourism Authority of Thailand

  12. Situation of Credits for RE Sector • New Credits in 2005 : 28,587 mB / 5.2 bUS$ decreased 38% • Increase of new shares : 22,000 mB/5.05bUS$ increased 51%

  13. How to Own Property in Thailand • In general, foreigners are prohibited to own land • Exceptions • Buy 1,600 Sq.m - in approved areas - minimum investment of 40 m.B (1 m. US$) - invest in Govt bonds, property mutual funds or BOI projects • Foreign company with BOI approved investment project can buy land • Foreigners can own designated units in certain condominium projects • Foreign developers may hold share up to 49% of a condominium project

  14. FAIBCI World Congress • SOFTTEL Central Plaza, Bangkok 26-31 May 2006 • 1,000 participants from 60 countries • Coordinating Agencies : FAIBCI-Thailand • www.faibci-bangkok2006.com

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