11 - 15 September 2023: Weekly Thailand Property News

Phuket's Thriving Condo Market Sees Increased Investment Amid Tourism Revival

In the wake of Phuket's robust post-COVID tourism recovery, prominent real estate developers, including Central Pattana, are significantly expanding their investments on the island. Before the pandemic, Phuket contributed significantly to Thailand's GDP, with tourism accounting for a substantial 90%. Despite initial setbacks, a resurgence in tourism, supported by government policies and the anticipated 100% recovery by 2024, has reinvigorated the island's economic outlook. Kree Dechai, President of Residential Business at Central Pattana, emphasized the dual nature of the condo market, catering to both affluent locals and the growing expatriate community. With a phased investment of 5,000 million baht over five years, Central Pattana's ambitious residential projects underscore confidence in Phuket's long-term appeal, and profitability.

Source: BangkokBizNews

Chiang Mai Real Estate Market Adapts to Economic Challenges

Chiang Mai's real estate market grapples with challenges as household debt rises, and purchasing power diminishes. Despite a slowing GDP growth rate in the northern region, sectors like tourism, industry, and construction hold promise. The expansion of local infrastructure, including the airport, aims to accommodate an increasing number of immigrants and tourists. However, high-interest rates, political uncertainty, and strict foreign controls, especially from China, hinder investments. Local real estate experts urge developers to innovate in product offerings, highlighting the potential of semi-detached housing to meet the preferences of the new generation. As the Thai government considers policy changes to bolster the sector, the overall sentiment remains cautiously optimistic about a post-COVID market recovery in the coming years.

Source: BangkokBizNews

Northeastern Thailand's Real Estate Faces Challenges Amid Shrinking Purchasing Power

The real estate sector in Isaan, encompassing five northeastern provinces, confronts formidable challenges as the Real Estate Information Center (REIC) reports a 22.8% increase in unsold housing units in the first half of 2023. Rising interest rates and stringent loan approvals have led to a surge in household debt, dampening purchasing power. Despite once being seen as economical alternatives, the cost of semi-detached houses has risen due to increased land costs, making them less appealing to buyers. Notably, the housing market in Udon Thani and Korat differs: Udon Thani relies on the struggling tourism sector, while Korat's more stable environment is buffered by robust infrastructure. Leaders in the sector express hope in government intervention, underlining the sector's significant economic impact.

Source: BangkokBizNews

Machine Learning: Revolutionizing Real Estate Decision-Making

Machine Learning (ML), a subset of Artificial Intelligence (AI), is revolutionizing the real estate sector, a significant contributor to the national GDP. As real estate decisions demand expertise from various fields, ML streamlines the decision-making process by swiftly analyzing complex data. Two models illustrate its effectiveness: The first, using Artificial Neural Network (ANN) techniques, enhances the accuracy of project sales rate forecasts by analyzing factors like price, functionality, and location. The second, employing a Classifier Ensemble technique combining Decision Tree and gradient-boosted tree methods, aids in determining the optimal real estate project type for a specific land parcel. As technology transforms the business world, real estate professionals are poised to benefit from ML's contributions to efficiency and precision.

Source: BangkokBizNews

Settha Thaweesin: A Prime Minister with a Proven Record in Real Estate Management

Settha Thaweesin, Thailand's Prime Minister and former Sansiri CEO, is known for his decisive and innovative leadership style. Drawing on his successful real estate management background, he implemented a "Speed to Market" strategy at Sansiri, making quick decisions and embracing change. This approach not only helped Sansiri thrive but also created a workplace culture that appealed to the new generation.

Settha's ability to think on his feet and his commitment to problem-solving are assets in his political role. His economic background and experience in handling various crises during his time at Sansiri make him well-suited for the position of Minister of Finance. Settha's emphasis on stakeholder importance and balanced decision-making extends from the business world to politics, showcasing his adaptability and commitment to progress.

Source: BangkokBizNews

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