17-21 July 2023: Weekly Thailand Property News

Phuket's Transformation into a Global Health City Led by Prince of Songkla University

As Thailand's tourism sector anticipates a record 28 million visitors in 2023, Phuket emerges as a top destination, driven by Chinese tourists. The city's reputation for excellent public health administration during the pandemic has further fueled its appeal. Prince of Songkla University's ambitious Andaman International Health Center project aims to solidify Phuket's status as a world health city by 2028. With an estimated cost of 20 billion baht, the project faces challenges in constructing the 500-bed Songkhla Nakarin Hospital. Achieving a sustainable balance between booming tourism and healthcare is vital for Phuket's success as a health tourism hub.

Reference: https://mgronline.com/stockmarket/detail/9660000031998

Post-Election Uncertainty Shadows Thailand's Real Estate Market

Thailand's recent election has triggered a surge in housing demand, reflecting long-term buyer confidence. However, the aftermath of elections often leads to economic volatility and policy changes that affect tax rates and government agency directives. High-end buyers are adopting a cautious approach, waiting to gauge the new government's policy direction before making real estate investments. The market eagerly awaits the appointment of the 30th prime minister and expects stable macroeconomic trends to revive the real estate sector. The global economic recovery also plays a crucial role in shaping consumer behavior.

Reference: https://www.bangkokbiznews.com/property/1078964

Foreign Demand Boosts Bangkok's Second-Hand Real Estate Market

Bangkok's second-hand real estate market is experiencing a notable increase in listings, particularly in districts like Huai Khwang, Wattana, Chatuchak, Khlong Toei, and Ratchathewi. Economic recovery and the May election have prompted consumers to release more condos into markets, driving the surge in supply. Foreign buyers are actively seeking more affordable options in escalating costs for new developments. Central locations and major tourist destinations like Silom, Sukhumvit, Ratchada, and Rama 9 are attracting significant foreign interest. Nonetheless, rising household debt, non-performing loans, and foreclosures pose challenges for the real estate market.

Reference: https://www.bangkokbiznews.com/property/1079017

ASW Targets Phuket's Real Estate Boom with Strategic Investments

ASW, a leading Thai real estate company, is capitalizing on Phuket's thriving market by focusing on prime locations like Patong, Kata, and Karon and appealing to foreign investors. Collaboration with Takara Leben, a major Japanese real estate firm, and the acquisition of shares in Rompho Plc. demonstrate ASW's ambitious growth strategy. Phuket's diverse appeal to international buyers, including Russians, Chinese, Indians, and Europeans, positions it as an attractive investment destination. As tourism rebounds, foreign buyers are showing increasing interest in villas and condos near the sea. However, challenges lie in soaring land prices and stringent regulations. Despite this, ASW is determined to develop nine exciting projects in the area, targeting an income of 10,000 million baht within three years.

Reference: https://www.thansettakij.com/real-estate/571091

Contractor Shortage Sparks Intense Competition in the House-Condo Market

The booming low-rise real estate market has created fierce competition among contractors and construction workers to meet surging demand. However, a severe shortage of contractors is causing delays in-home delivery, impacting the industry's revival. Real estate developers are struggling to find skilled labor as large contractors have shifted focus to infrastructure and condo projects during the economic upswing. This shortage has prompted some developers to attract contractors from other regions, further intensifying the competition for skilled workers. The industry is exploring solutions, such as finding new contractors and improving the efficiency of existing ones while ensuring fair labor wages that do not disrupt project costs and selling prices.

Reference: https://www.bangkokbiznews.com/property/1079450

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