08 Nov Investment in property remains strong
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Savills have just released their quarterly investment review. In which they have note the significant events for Thailand’s property market in the third quarter of 2017. The first point the real estate firm draws on in the sustained appetite for luxury property. This has been a continual theme throughout the year with investors undeterred in their spending by variables such as the weak economic climate. Prime locations remain in high demand from both developers and individual purchasing units.
Therefore it is unsurprising that one of the big transactions for this period was that of the ex-Australian Embassy. Causing a stir when it came onto the market due its numerous qualities proving its credentials as a lucrative investment opportunity. Sat bang in the middle of Bangkok’s finance industries, banks, international firms and leading hotel chains ensured that this was always going to generate a lot of interest. Its sizable plot and frontage onto south side of Sathorn Road being the icing on the cake. Supalai snapped up the site for THB 4.6 billion announcing that it is planning a mixed used scheme of residential and commercial in its place.
Simultaneously there has been a strong injection of foreign direct investment. In fact a 29 percent increase year-on-year. China has continued to pour funds into the Kingdom. According to the Bank of Thailand China has increased its investment in Thailand by 55 percent. This has contributed to the total of USD 1.1 billion of FDI which has been received.
Finally joint ventures have been another theme of late. Domestic developers are teaming up with overseas companies as Thai property continues to catch the eyes of the non-domestic market. A few examples include All Inspire Development PLC working alongside Japan’s Hoosiers Holdings, prominent local developer Sansiri partaking in another collaboration with Tokyu Corporation, and Origin Property PLC with Japan’s Nomura Real Estate Development.
Source: Thailand Property