Thailand’s top property developer AP is confident the overall outlook for the market looks promising for the remainder of this year and next.
Reported by Thailand’s National News Bureau and according to the company’s Chief Marketing Officer Vittakarn Chandavimol, Thailand’s economy continues to recover alongside the many economic stimulus measures from the government.
There have been positive signs for the industrial estate market since the army seized power in May, and the government’s clarification of the electric train development project signals that business will be booming.
The residential market is growing and the average take-up rate in the second quarter was the highest of the past few quarters. The take-up rate in the City area is the highest, followed by the Suburban Bangkok and Outer City West areas.
The condominium market, especially, is experiencing a boom from rising demand in areas along the BTS extension route from Sathorn across the Chaophraya River to Thonburi.
Vittakarn said the extension of the mass transit network into suburban areas has helped spur more property development projects on the outskirts of the city. However, demand for condominium and houses in the centre of Bangkok is still robust as more mature clients are willing to pay more to live in the business districts.
Younger clients on the other hand tend to look for property along the skytrain and MRT lines outside of Bangkok.
AP has recently established a joint venture agreement with Mitsubishi Estate Group, one of Japan’s largest developers, which so far included four development projects. The fourth project, which is located next to Talat Phlu BTS station, marks a new milestone in a partnership that has brought about Japanese-style architecture and common area features with insights into Thais’ living habits.
More than 1,000 units at the project were sold during the opening pre-sales weekend earlier this month.
Vittakarn concluded that rising land prices means any new condominium development will be more expensive than past projects. This will likely push up prices in the best completed buildings, he said.
A super selection of properties from across Thailand will be on show in Singapore on Saturday, November 1, and Sunday, November 2, at the PropertyGuru Thailand Property Show.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
