Thai Property Market Expected to Recover in Latter Half of 2014
Those in the real estate industry can breath a sigh of relief as the residential, office and retail property markets in major cities around Thailand, including Pattaya, are expected to recover during the second half of the year as confidence returns among buyers and investors following the May coup. Research was conducted by Colliers International (Thailand), a global commercial real estate services organisation.
At present, the company is advising its business customers in the development of THB 10 billion worth of real estate projects. Of this figure, 70 per cent includes condominiums and the remainder are office and retail projects.
In the residential segment, approximately 80 per cent of Colliers’ customers are continuing to develop projects in line with their business plans. Others have delayed their projects, preferring to wait and see whether the economy will recover following the junta’s announcement of its economic road map.
Colliers’ associate director for research, Surachet Kongcheep, said the condominium market is set to recover during the second half of the year. New condo projects launched in Bangkok in the first five months of 2014 came in at just 16,617 units – down 21.6 per cent from the same period last year. New condominium launches in the first two weeks of June totalled 7,000 units, with up to 40 per cent of their overall project value already sold, reflecting renewed market confidence.
Meanwhile, the overall office and retail sectors continue to experience stable growth, said Mr Kongcheep. Office demand has continued to grow by an average of five per cent this year, although some foreign firms have delayed expansion of their office space. The supply of office space in Bangkok remains limited, he added.
As for retail property, developers have continued to expand their investments this year. Up to 700,000 square metres of new space will be completed and available for business use in the second half, indicating that demand for retail space remains, despite only slight economic growth this year.