GDP From Construction in Thailand increased to 77237 THB Million in the fourth quarter of 2016 from 66489 THB Million in the third quarter of 2016. GDP From Construction in Thailand averaged 58891.02 THB Million from 1993 until 2016, reaching an all time high of 103692 THB Million in the first quarter of 1996 and a record low of 36619 THB Million in the fourth quarter of 2000.
Real estate’s reputation as a valuable investment asset strengthens further in the Thai capital
Bangkok’s property market is going from strength-to-strength, according to DDproperty’s latest Property Index.
The Thai capital has displayed price growth with an eight-point increase from 205 to 213 in the first quarter of 2018. This growth is on the back of an improving economic outlook and an expected increase in Gross Domestic Product (GDP) this year to 4.2 percent (up 0.3 percent y-o-y), and in part due to the rising cost of developing projects in the popular but densely built-up areas in Bangkok.
The Index has jumped by 213 percent in the last three years, fuelled by hot land prices which has meant that affordable residential developments are being pushed further from the city centre, most commonly along mass transit extension lines.
“The sophistication of Bangkok’s property market is more apparent now than ever,” said Kamolpat Swaengkit, Country Manager for DDproperty. “As values continue to move upwards, property’s reputation as a valuable investment asset strengthens further. Developers are therefore taking note and it is no wonder that the year has welcomed joint ventures between local and foreign developers eyeing potential across the city. They have become a lot more selective on the kinds of projects they work on, with the focus on building the ‘right’ property for the location and ensuring it is suited to its target audience. We have seen a real shift in the market with this renewed attention to detail.”
A long-discussed plan to offer five-year visas for foreigners was floated again Tuesday by the nation’s top tourism official.
Visas to facilitate those staying for extended periods would make Thailand more competitive with neighbors such as Malaysia, where 10-year visas are available, according to Minister Kobkarn Wattanavrangkul, who said the issue would be raised with the relevant immigration and security agencies.
“If Thailand had a clear strategy and marketing plan, I believe we could attract long-stayers as much as Malaysia does,” she said.
Visas such as those offered in Malaysia are not valid for employment but hold appeal for retirees and students.
Kobkarn also singled out complaints about delays at the Chiang Mai immigration office, saying it needed to increase staff because it takes more than six times longer for expats to extend their visas there compared to offices in other provinces.
As the northern province is home to about 12,000 long-stay foreigners and a destination the government wants to promote as a medical hub, Kobkarn said her ministry would push the Immigration Bureau to loosen measures, such as dropping 90-day check-ins in favor of an annual system.
The population of long-staying residents is expected to grow 5 percent to 10 percent annually, she said.
Various efforts and calls for long-term visas have been brought up many times but none has yet been pushed toward implementation.
In March, an umbrella organization of trade groups called on the military government to issue a new type of five-year visa to attract highly skilled professionals. No progress was ever reported.
The smartphones that sit uncomfortably inside our pocket are now more powerful than the large desktop computers from 10 years ago. However, many people will tell you that these fantastic advances in technology are not always a sign of progress.
For example, anyone that remembers the days when the tank like Nokia 3310 ruled the world will scoff at our unusual modern ways. Back in simpler times, you didn’t have to worry about dropping your phone or constantly searching for a power socket to charge your phone, and it even fit in your pocket.
You didn’t feel the need to have to search for a game that you somehow buried on page 7 of your phone apps because the only game you played was called Snake. This was an era where reliability and resilience were rated much higher than shiny new gimmickry.
Sure, there was a reversal of fortune when the iPhone appeared on the scene, and we fell in love with mobile apps and screens that shatter just by looking at concrete. Eventually, Microsoft infamously acquired Nokia’s mobile phone business in 2014 for a whopping $7.17 billion in a move that would eventually be the kiss of death for the Nokia phone as we knew it.
According to Evan Blass, HMD Global Oy, the Finnish manufacturer with exclusive rights to market phones under the Nokia brand have an interesting announcement on the horizon. It appears there are plans to announce four handsets at Mobile World Congress later this month including the much loved Nokia 3310 that many still remember as the first phone they fell in love with.
Located in the heart of Southeast Asia, Thailand has served as a trade and business hub for centuries. It was a buffer zone between colonial powers because of its strategic location. As a result, it was the region’s only nation that wasn’t colonized.
Thailand (and its property market) is still able to reap the rewards from its strategic placement on the map today, yet in different ways.
Its capital of Bangkok is just an hour-long flight from four rapidly growing frontier markets. Namely Vietnam, Cambodia, Laos, and Myanmar.
These countries are among the world’s fastest growing and give Thailand easy access to cheap labor along with almost 200 million consumers – not to even mention its own decent-sized population of 67 million.
Of course, the Thai economy isn’t just dependent on its neighbors for growth.
You’ll find Thai exports in any supermarket in any Southeast Asian country. While stores in Thailand stock themselves with products from Japan and the US, stores in Asia’s frontier markets fill their shelves with Thai exports.
Brands such as Red Bull (which as a little-known fact originates in Thailand) are sold globally as well.
If you open up your computer and read the label on your hard drive, it’ll probably have a sticker which says “Made in Thailand” on it. This is because Thailand is one of the world’s top makers of hard drives and memory.
Not only is Bangkok the most heavily tourist city on the planet (beating out Paris and London in Mastercard’s latest survey), but also one of the world’s largest exporters of automobiles, electronics, and hardware.
Besides manufacturing and exports, Thailand has a large services sector considering it’s an emerging market. The Thai startup community is also seeing rapid growth and great success.
These factors led to steady growth which has continued for about 30 years, transforming Thailand into one of Asia’s most dynamic countries.
Naturally, this extends to the Thailand property market as well. A middle class which barely existed a few decades ago is now much more prominent. They’re capable of buying into the countless new condos and housing projects being built.
The city is sorely lacking in green space per capita
Thai architects are partnering with the government on plans to turn Bangkok and other big urban areas into “public cities for all,” with green spaces that are commensurate with the needs of their inhabitants, The Nation reported.
The Thai Association of Landscape Architects (TALA) announced Wednesday it is pitching the Health Ministry a policy promoting more green, public spaces in the city.
The architects will be working closely with the National Health Commission Office and “brainstorming” with the private sector and civilian stakeholders, according to landscape architect Yossapon Boonsom of TALA.
“We live in a sick city, full of pollution and limited in public spaces, and many urban dwellers are physically ill,” he said.
Thailand has come a long way in recent years, perhaps a lot further than what many people might imagine. The economy has seen steady growth over the last 25 years with this expected to continue at between 2.9% and 3.3% between 2016 and 2018 according to The World Bank.
This growth is certainly significant when you consider other countries in the region are experiencing slowing growth or are already a long way behind Thailand.
With ASEAN now in place, although the effects of which are yet to be fully experienced, you have to question the role that Thailand will play within the community. As always there will be doubters but when you think about it rationally Thailand is in a very strong position.
The country is blessed with natural resources, lots of large multinationals that have a presence in the country, the currency is relative stable whilst at the same time growing in strength and the stock exchange and retail markets are following in a similar fashion.
Labour is Thailand is not as cheap as some neighbouring countries although the workforce has a much higher level of skill thanks to better education and the influence of overseas companies. This will give Thailand an advantage over emerging nations as pay scales are still lower that some of the countries that may be perceived as being more developed. The government also offers attractive assistance to overseas companies in the form of BOI backing in certain industries – again benefitting the country as a whole and encouraging increased overseas investment.
Cambodia and Myanmar often make headlines for being growing forces within South East Asia and indeed this is the case but this should not take anything away from Thailand, a country that has already achieved these goals and is now striving to reach far higher targets and objectives. A few years of financial stability and continued growth, something that is predicted, will see Thailand move far in front of these developing nations.
With the infrastructure firmly in place, Thailand is now looking to make gains on countries such as Malaysia, Singapore and Japan. There is no reason why these goals cannot be obtained and this is what makes investing in Thailand at the present time such an attractive option.
It is quite reasonable to think that Thailand could become a dominant economic force in the region and as the country starts to show gains the markets and property prices will inevitably rise.
Therefore it seems perfectly possible that a country such as Thailand could become an economic force within the region and maybe this would be less of a surprise than many people might think.
The Condominium Act of 1979 is restrictive of foreign ownership of condominiums in Thailand, but generally allows it for foreigners who permanent residents, or those who have entered the country on an investment promotion visa, or for those who have fulfilled certain requirements related to the transfer or withdrawal of foreign currency. In regards to those foreign currency requirements, the Land Department Regulation Re: Foreign Ownership of Condominium Units of 2004 defines the foreign currency requirements below.
The foreign purchaser must provide evidence of either (1) remitting foreign currency into Thailand, or (2) withdrawing Thai baht from the bank account of a person who is domiciled outside of Thailand, or (3) withdrawing money from a foreign currency account in an amount no less than the purchase price of the condominium unit that is intended to be purchased.
Chinese demand for real estate in Thailand is at an apogee, but the Beijing government’s drive to control capital flight could hinder such demand, according to a new report by Financial Times Confidential Research (FTCR).
Surveying 108 investors, FTCR found that Chinese buyers, mostly only “moderately wealthy” and put off by skyrocketing values in the mainland, are scouring the kingdom for residential properties. Buyers from China now account for 10 to 20 percent of total sales in the tourist hubs of Chiang Mai, Pattaya, and Phuket, and 5 percent of those in Bangkok.
However, such foreign demand is likely to recede soon. “The immediate outlook for Chinese investment flows into Thailand is negative,” FTCR stated in its report.
“In this new climate, we expect investors to delay plans to purchase more Thai real estate, at least until the dust settles, if not until the Chinese government loosens up again.”
Thailand is now the fifth most popular destination for real estate investment by the Chinese, FTCR pointed out. In 2010, almost no Chinese were buying homes in Thailand.
That year, Chinese tourist arrivals in the country topped 1.22 million, according to the Thai Immigration Bureau.
Hillside and cliffside developments in the Thai island require careful planning
Developers who want to build on vantage points, promontories, and other plots of significant terrain in Phuket will need to contend with the government’s new environmental regulations for the touristy Thai island, a leading hospitality consultant said.
Under rules issued by the Ministry of Natural Resources and Environment, structures are forbidden from being built on land with a gradient or slope of 35 percent and above, significantly down from the previous threshold of 50 percent.
Additionally, if the area is elevated more than 40 metres, a building must not be six metres high. A building sited in an area elevated below 40 metres must not be 40 metres high.
“Who are the winners and losers for development? Hillside condominium projects certainly will become more difficult as will cliff hugging hotels,” reported Bill Barnett, managing director of the hotel consultancy C9 Hotelworks.
