28 August - 1 September 2023: Weekly Thailand Property News

Thailand's Condo Market Revitalized by Government Measures, Notably Among Foreign Investors

Data from the Real Estate Information Center (REIC) suggests that government initiatives, such as Loan-to-Value (LTV) reforms and visa liberalization for Chinese and Indian nationals, have revitalized Thailand's real estate sector. Foreign ownership of condominiums has surged by 65.6% in units and 57.8% in value year-on-year. Nonetheless, enduring challenges like escalating interest rates and substantial household debt persist, prompting calls for further targeted interventions.

Reference: https://www.thansettakij.com/real-estate/574793

L.P.N. Development Strategically Invests $64 Million in Condominium Project Amid Eastern Economic Corridor Growth

L.P.N. Development Public Company Limited is strategically focusing on Thailand's burgeoning Eastern Economic Corridor (EEC) with a condo project valued at approximately $64 million. Designed to meet the accommodation needs of an influx of industrial workers, the Earn by L.P.N. development aims for completion in November 2024. This tactical move aligns with the company's aggressive sales targets, exceeding half of which have already been achieved.

Reference: https://www.bangkokbiznews.com/property/1086407

Home Builders Association Unveils Expo in Bid to Resuscitate Thai Housing Market

Amid economic fluctuations and a 0.25% increase in the annual policy interest rate, the Home Builders Association of Thailand maintains cautious optimism about the housing market's prospects for the second half of 2023. The Association's president, Mr. Olarn Chanphu, acknowledges industry challenges, including higher labor and material costs. However, strategic countermeasures to accelerate consumer decision-making are underway to combat the stagnant market. Notably, the launch of the annual "Home Building and Materials Expo 2023" seeks to stimulate demand by uniting industry stakeholders and offering incentives to prospective homebuilders. The expo encompasses a comprehensive effort to expand the industry's presence beyond Bangkok, fostering growth in regional markets and attracting new Association members.

Reference: https://www.bangkokbiznews.com/property/1086064

Thai Real Estate Market Experiencing Robust Growth in Transit-Oriented Mixed-Use Developments

The Real Estate Information Center (REIC), a division of the Government Housing Bank, convened a high-profile seminar with Thai private sector and government stakeholders to assess the burgeoning landscape of mixed-use projects and transit-oriented developments (TODs). Assistant Director Sitthiphen Sitthatthaphong stated that mixed-use projects are growing around mass transit stations, significantly contributing to economic stimulation. With 126 projects already completed or underway in Bangkok and its vicinity, the focus is on expanding retail spaces and leveraging the TOD model. Pathumwan district leads in new projects, accounting for nearly 15% of ongoing developments. Esteemed companies like Central Pattana and The Mall Group are heavily investing, and draft legislation is in progress to facilitate TOD projects, promising far-reaching economic benefits for Thailand.

Reference: https://www.bangkokbiznews.com/property/1085994

In a Volatile Economy, Thai Real Estate Firms Focus on Luxury and Super-Luxury Housing

Against the backdrop of economic and political volatility, Thai real estate developers are shifting focus to the luxury and super-luxury housing sectors. Catering to high-income, low-credit-risk buyers, these segments remain resilient amidst contractions in other categories. Companies like Asset Five Group and Ananda Development unveil ambitious projects worth billions of baht, emphasizing detached homes in high-value areas. Sansiri Public Company plans to launch 39 new projects, with a strong luxury sector concentration, while Singha Estate aims to develop five high-value projects worth 10 billion baht. This surge in luxury real estate investment mirrors sustained demand and robust purchasing power among high-net-worth individuals, rendering the sector a relative 'safe zone' amid broader economic challenges.

Reference: https://www.bangkokbiznews.com/property/1085972

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