Thailand Property Industry Report - 2014

November 28, 2014

This report provides an overview of Thailand’s property industry, covering the five core sectors – residential, industrial, office, retail and hotel. The report discusses market trends through 2014 and highlights key industry players including Land & Houses PCL, Pruksa Real Estate PCL, Quality Houses PCL and Amata Corporation PCL.

The overall Thai property market saw an average expansion of 5% y/y in 2013, although housing consumption in the fourth quarter decreased due to the domestic political crisis. However, the demand for condominium projects located along the mass transit stations is still growing. On the supply side, most real-estate developers continued to proceed with their announced housing projects. Nevertheless, some new projects were postponed until the second half of 2014 when political turmoil came to an end. The overall housing market looks to slow down slightly in 2014 as banks become strict in considering finance loans and political conflicts take a toll on the economy, investments and consumers’ spending.

As the political situation has calmed and a new government has been established, both consumer confidence and business sentiment have improved. As a result, the demand for prime residential, retail and office space should rise and support a continued increase in average rents and market yields.

The outlook for the Thai property market will largely depend on national political and economic stability as well as loan granting policies of financial institutions. The limited amount of space available in the most sought-after locations next to mass transit stations means that rents are likely to continue rising, although uncertain political environment and strict loan policies have been the major factors to slow demand.

Key Points:

• The overall residential market expanded by 5.8% y/y in 2013 to 132,302 units based on the number of new housing registrations in Bangkok and its vicinity. In Jan-Sep 2014, the number of new registrations increased 4.8% y/y to 93,173 units.

• The residential market, especially the low-rise segment, duplexes and townhouses, expanded faster because of high land costs.

• The housing stock in Thailand has increased continuously over the years to a total of 23.5mn units in 2013, up 2.8% y/y.

• Limited new supply and growing demand for commercial and industrial space has resulted in a steady growth of land values as well as asking prices of office building and industrial rents.

To view this extensive report in full including details such as —

  • Macroeconomic Analysis
  • Politics Analysis
  • Industrial sectors and trade
  • FX, Financials and Capital Markets
  • And more!

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