Transcript 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
International Real Estate Federation
(FAIBCI) 57th World Congress
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
House/Housing market in
2005/2006
2005 :Supply of houses increased in every area
2005 :Supply of single house/town house : 30
strategic provinces
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30 strategic provinces decreased 9.7%
Other provinces continue to increase
High Housing Building in 30 strategic provinces
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Licenses increased 69% (3,131 buildings)
Construction area decreased 38%
4,079 Sq.m. To 1,252 Sq.m.
House/Housing market in
2005/2006 (Continue)
Office Building Market 2005
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Licenses increased 50%, building areas
decreased 50% in 30 provinces
No licenses in the North, South and Central
Commercial Building Market 2005
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Licenses increased 3%, building areas
decreased 11% in 30 provinces
Number of buildings increased in North,
Northeast, South
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 middlerange housing (1-3 mb./25,000-75,000 US$)
Market for high price housing(10mb./2.5mUS$)
will slow down
Factors of RE Market in 2006
Oil price
High inflation rate
Increase of interest rate
Liquidity of financial institutions
Political situation
Others
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
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$) : get
BOI privilege
Joint-Venture Investment
projects with Foreign Partners
Noble Development Co.Ltd.: Europe, Japan
Develop retails area : 10,000 Sq.m.: 2bB/50 mUS$
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
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
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%
How to Own Property in Thailand
In general, foreigners are prohibited to own
land
Exceptions
1. 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
1. Foreign company with BOI approved investment
project can buy land
2. Foreigners can own designated units in certain
condominium projects
3. Foreign developers may hold share up to 49% of
a condominium project
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