The Agency for Real Estate Affairs (AREA) estimates that new residential project launches in Bangkok and suburban areas this year will increase by more than 50 per cent in terms of units from 2009. AREA president Sopon Pornchokchai said the company’s estimate is based on new residential projects comprising 45,649 units worth Bt109.58 billion in the first half of this year. The company estimates new residential projects for the full year will be 87,574 units, worth Bt216.75 billion, up 52 per cent in terms of units and 18 per cent in terms of value over last year. According to AREA, 63 per cent of total new projects launched in the first half were developed by the industry’s top 10 listed property firms. Up to 34 per cent of total new projects launched by listed property firms were from Pruksa Real Estate. The increase in project launches follows a Board of Investment (BOI) policy revision early this year that broadened tax privileges for home-buyers. Sales of residential projects in the first half of this year were 42,448 units, accounting for 90 per cent of new projects in the period, which totalled 45,649 units. Meanwhile, inventory in Bangkok and its suburbs was 110,666 units, which is expected to take about two years to sell. Currently, the residential projects number 1,266. Some 64 projects are suspended due to loan, environmental or sales problems. Source : nationmultimedia.com .
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Residential project launches to see big rise
Developers are confident in the property market’s long-term potential, which will improve in line with Thailand’s economic growth, despite political turmoil on the streets of Bangkok.
Property firms in Thailand saw their performances improve in the first quarter compared to the same period last year, largely thanks to tax breaks for home-buyer. The property market has improved since the third quarter last year with sales picking up. Based on a wide range of forecasts, the Thai economy is expected to grow by 4% this year, but political uncertainty will reduce purchasing power and local and foreign investment in Thailand.
Foreign nationals are not permitted to own freehold titles, the only exception being where the foreign national has invested a significant amount of money (about US$1 million) in stocks, securities, or companies, and has Board of Investment Promotion (BOI) approval, in which case the BOI may recommend that the foreign national be permitted to hold a freehold title not exceeding an area of 1,600sq.m. The only other ways for foreign nationals to own freehold titles are to form a private limited company that then owns the title, a mechanism the Thai authorities are starting to take a dim view of, or to have a Thai national (usually the foreign national’s spouse) hold the title – a very risky option.
To be honest, you’ll either love Bangkok or hate it. If you find noise and crowds bothersome, it’s probably not for you. Much of the time, there’s not enough space to walk freely on the sidewalks—they’re spilling over with clothes stalls, food stalls, people doing outdoor cooking, women making flower garlands for the temples, people making clothes on sewing machines—it really is life lived on the street. Be warned that the pollution can be pretty fierce in summer. Even in winter, the street sweepers wear masks.
