Author: bsullivan

The decline of Bangkok reflects the severe impact of the Covid-19 pandemic on the rental market in the tourism-reliant Thai economy, according to ECA’s latest survey.

Hanoi saw a similar drop of 12 places to 81st place, based on an analysis of data gathered in September 2020.

The survey uses average rental prices for a three-bedroom apartment in the mid-range of the expatriate market.

ECA International has been conducting research into accommodation costs for international executives for more than 20 years to help companies provide the right housing options as part of the overall compensation package for mobile employees. The research compares rental costs in accommodation in areas typically inhabited by expatriate staff in over 360 locations worldwide.

Hong Kong has been named the most expensive location in the world for expat accommodation for a fourth year in a row but still saw rental costs drop considerably due to the effects of Covid-19.

• Hong Kong retains its position as the most expensive accommodation for overseas workers, despite a drop of over 5% in rental costs from last year.
• The impact of Covid-19 on business travel and overseas assignments causes monthly rents to drop by an average of USD 549 to USD 10 769 (HKD 83 466).
• Taipei climbs twenty places in the latest rankings, while tourism hubs such as Bangkok and Hanoi fall.
• New York and Tokyo remain in second and third position in the rankings respectively.

Asia Highlights

Cities in Taiwan all rose in the rankings this year, as rental markets saw an increase – especially Taipei which climbed 20 places to 29th most expensive location worldwide. 

Quane said “Taiwan was one of the few locations in the APAC region to see significant rises in accommodation costs this year, with the average monthly rental cost in Taipei now standing at USD 4 101 – a rise of over 5% from last year. This growth was a knock-on effect of the nation’s success in mitigating the transmission of the Covid-19 virus, as well as repatriations of staff previously assigned to China and demand for talent in key industries in Taiwan which all resulted in increased demand, meaning that rents were able to stay consistent and even increase in many high-end areas.”

Meanwhile, Singapore fell one spot in the rankings to 26th position globally, as rents fell by an average of over 2%. The average monthly rent in Singapore is now USD 4 210 (SGD 5 747).

“Rent levels in Singapore are always notably stable and this year is no different, with only a slight dip in the rankings. However, this is a reversal of the increase in rental costs seen in 2019 and is likely the result of greater immigration restrictions for workers and other travellers to the city, thereby suppressing demand for all types of accommodation” explained Quane.

Related

The global Covid-19 outbreak has had serious negative effects on commercial real estate, including flexible space. Of late, many operators have experienced the flexible nature of the business working against them, as many occupiers have opted to surrender desks and implement work-from-home plans.

This is particularly true of freelancers, start-ups and SMEs. Demand from corporate occupiers has been more mixed. Generally, flexible space with open plan and dense centre layouts is viewed as a higher risk. But in some markets, corporates have taken additional flexible space to satisfy business continuity and disaster recovery requirements.

As corporates return to the workplace, we expect to see them continue to leverage flexible space for these purposes, as well as for split teams and de-densification requirements. Thus, companies enable their employees to work remotely in better connected and more productive workspaces compared to home.

Landlords re-think flexible space strategy

Despite varied market conditions and end-user demand across the region, the Covid-19 outbreak has put some operators under financial strain, and we expect the consolidation of a heavily fragmented sector to accelerate as a result.

This is particularly true of operators on a straight lease, rent arbitrage model who are paying top of market rents. In the wake of operator defaults, landlords will be forced to re-evaluate the role of flexible space in their portfolios.

But we do expect them to continue using flexible space as a tool to attract and retain traditional occupiers in their buildings.

Greater China may offer some insight

Greater China may offer some insight into how landlords will respond to centre closures as operators there were making strategic adjustments to their portfolios well before the outbreak. Surrendered space can be re-purposed and leased as fully fitted-out, turnkey space to traditional tenants.

However, given current market conditions, corporates’ wait-and-see attitude and desire to avoid capex, landlords may find it difficult to backfill vacancies with traditional occupiers. Some landlords may attempt to operate centres themselves.

But landlords should be aware of potential pitfalls – flexible space is a high-touch, high-service level business which most landlords are not set up to operate.

However, a few have experienced some success although it has been difficult to compete with the professionalism and service levels of experienced operators. A third option is to bring in a new operator.

When choosing this path, landlords should be mindful of the operator’s reputation – even before the outbreak, corporate end users exhibited a clear preference for operators with a stable and profitable track record.

Long-term future of flexible space remains bright

The same fundamental demand drivers that brought about the recent structural shift in occupier markets remain intact, if not reinforced, and we believe the sector will resume growing.

However, we do expect to see landlord-operator agreements evolve with more sustainable revenue share and management contract models becoming more commonplace.

Reports suggest that during the Covid-19 downturn, operators and landlords on management contracts are cooperating and strategising in a far more symbiotic fashion.

These models align the interests of both parties, and they are more sustainable through property cycles. They reduce the risk of operator defaults whilst providing landlords with the added benefit of sharing in the upside of the centre’s profitability. Covid-19 puts flexible space markets under strain | JLL

BANGKOK(NNT) – The Cabinet has approved a reduction in Land and Building Tax this year of 90 percent to help ease economic disruption from the COVID-19 pandemic.

Prime Minister and Minister of Defence, Gen Prayut Chan-o-cha has revealed the outcome of the and investment enhancement among other aspects, as the country enters the New Normal.

The Cabinet today approved a 90 percent reduction in the Land and Building Tax this year to help the general public cope with economic disruption from COVID-19, and prevent potential issues with land and building taxation in the future.

The government has pushed back the tax filing deadline to August, and will be holding further discussions with local authorities on local tax collections.

Meanwhile, schools across the country will open on 1st July, with the Ministry of Education preparing contingency plans in case of emergencies.

On the reopening of schools, the Prime Minister has confirmed the new academic year for schools will start on 1st July this year, and continue until May 2021, with additional classes to be held to make up for lost hours.

Schools may implement online and remote learning, which must be regulated under clear guidelines.

The government has evaluated previous developments to make plans for different scenarios, which include changes to remote classes on TV or online, for primary and junior high school students should the outbreak worsen. Schools can open while the situation remains under control, albeit with strict health and hygiene measures, and contingency plans for cases of emergency.

The government has declared that all Ministry of Education disbursements must cover students and educational staff, and the establishment of a committee taking care of underprivileged or disabled students, who may require financial support.

Residential tax rates

Residential Tax exemptions

Tax exemption for first home buyers for owners of both land and home worth up to THB 50 million and if owner’s name appears on house registration book

Tax exemption for owners of home (not land) worth up to THB 10 million and if owner’s name appears on house registration book

Agricultural land tax rates

Tax exemption for lands worth up to THB 50 million owned by individuals

In addition, individual owners who use the land, or building, for agricultural purposes will be exempt for the first three years of tax collection under the Act.

Asia Pacific commercial real estate investment volume fell to US$22.6 billion in Q1 2020, representing a decline of 23% y-o-y* and marking the lowest quarterly total in almost three years, according to the latest data from CBRE.

Turnover in the office (US$14 billion, up 2.5% y-o-y) and industrial (US$3.6 billion, down 4% y-o-y) sectors was firm but a sharp decline in retail deals (US$2.5 billion, down 45.8% y-o-y) combined with a fall in hotel investment (US$2.2 billion, down 14.3% y-o-y) pulled down overall transaction volume.
 
With the COVID-19 outbreak erupting in late January and continuing to impact economic activity in key markets across the region, the decline in transaction volume was widely expected as investors moved into wait-and-see mode, delayed investment decisions and site inspections, and other phases of the deal process were disrupted.

Transactions in China fell 32% and 72% in Hong Kong

Transaction volume in Mainland China fell 32% y-o-y to US$7.3 billion as investment activity weakened substantially from late-January following the imposition of a nationwide lockdown. While several large deals were completed earlier in the year, these had all been under negotiation since the second half of 2019.

In Hong Kong SAR, transaction volume reached just US$963 million, a decline of 72% y-o-y and the second lowest quarterly total since Q2 2009. Fewer than 20 deals were completed during the quarter, all by local capital.

Fewer than 20 deals were completed in Hong Kong during the first quarter

Other downbeat markets included Singapore, where investment volume fell 30% y-o-y to US$975 million, a figure that is expected to decline further in the coming quarters amid local stock market volatility and the implementation of a lockdown for the duration of April. 

Australia saw transaction volume fall by 50% y-o-y to US$1.6 billion as investor sentiment weakened substantially over the quarter due to the escalating pandemic.

Bright spots included Korea, where several deals concluded by local investors in January – together with the government’s success in containing the outbreak – underpinned transaction volume of US$2.4 billion, representing a decline of just 13% y-o-y from what was an already high base.

Activity in Japan remains strong, up 30%

Activity in Japan also remained strong, with transaction volume rising 30% y-o-y to US$8.5 billion. However, as most deals were signed relatively early in the quarter and the pandemic has escalated significantly in recent weeks, this level of activity is unlikely to be sustained in the coming months.

Although Q1 2020 witnessed the completion of several major deals that had been under negotiation since late-2019 – which lent considerable support to total regional investment volume – this quarter’s figures do not accurately reflect the sharp decline in investor sentiment and purchasing activity witnessed since February.

With many markets still subject to lockdowns and travel restrictions – measures that are weighing especially heavily on cross-border capital flows – CBRE expects the Q2 2020 data to serve as a far more accurate gauge of post-outbreak real estate investment activity.

Domestic investors will continue to dominate in the coming months as cross-border investors are unable to travel or perform site inspections. However, purchasing activity will be limited, with the large gap in pricing expectations between buyers and sellers set to lengthen the deal process even further. While some buyers are already seeking distressed opportunities, these have yet to become available.

While the short-term outlook is weak and investor sentiment is expected to remain fragile in the coming months, CBRE expects a quick rebound in activity once the pandemic is contained and travel…

Diversification is a key strategy to form a crisis-proof portfolio of assets. Investors must find sound investments in which to place their wealth while the crisis heavily impacts financial products.

Stock markets are highly volatile as traders panic-sell their stocks. On 16th March 2020, oil prices were at their historic lowest of 22.4 USD.

During these hardships, it is the tangible, full-ownership real estate properties which are considered a safe haven to secure one’s capital.

Diversifying one’s assets to mitigate the risks

Owning several assets such as both financial products and real estate means taking advantage of the strengths of each, while mitigating the risks of loss during crises. During favorable times, a good stock market investment can yield high returns, but it is not secured as you can lose the whole capital just as fast during crises.

On the contrary, real estate is a tangible and “stone” investment. It will stay no matter the economic situation : real estate prices can also go down during crises, but unlike stocks, the capital initially invested can not be entirely lost.

In a freehold investment, the investor and his designated heirs will always fully own the property, even if a systemic breakdown should occur. This is a secure asset, as the physical walls and stones do not depend on the fluctuation of the Stock market.

Diversifying currencies and countries of investment

Currency diversification is important to avoid depending on the value of a unique currency, and to profit from situational rises. The US Dollar for example is widely used in Southeast Asia and around the world.

In today’s crisis, it leads to the Dollar gaining value as many countries depend on and ask for it. Since the start of March 2020, the US dollar has strengthened by 5.9% against the Euro. It means that owning an asset and investing in USD is now highly profitable compared to the Euro.

By investing in several countries, you can benefit from more advantageous tax systems, exchange rates and prices.  For example, taxes in Thailand are lighter than most European countries.

And for the same price as a city center, 2 bedrooms apartment in Paris, London, Bangkok or Hong Kong, you can purchase a 4 bedrooms villa in Koh Samui island. With the decrease in Chinese tourism, 1 EUR is now around 36 THB (v.s. 33.5 THB in January) which is a good opportunity for Europeans to invest in Thailand properties.

An example of both currency and geographic diversification would be : having a Freehold Condominium under Foreign Quota in Thailand in THB, and investing in USD in Philippines properties. The first allows for a secure, full ownership property in Thailand. The second takes advantage of a presently strong currency in the Philippines.

The safe haven of real estate

While the COVID-19 crisis may indeed impact all sectors, the goal is to mitigate the risks of wealth loss. With full ownership real estate, the property is truly yours and is not at risk of being lost. The same cannot be said of financial assets which are intangible and depend on the economic health of the organizations and financial institutions founding them. 

This is why real estate is considered a safe haven during crises. It is a secured, tangible investment with a concrete ownership registration which cannot be taken away.

Thaï Property Group is a network of real estate experts in Thailand and South East Asia. Do not hesitate to contact them for more information on real estate properties in Asia.

Real estate investors in Asia Pacific are steeling themselves for impacts stemming from the coronavirus, the threat of which would add to existing economic headwinds in the region.

While it’s too early to know exactly how commercial real estate markets could be affected, the increasingly important position of China on the world stage means economic repercussions are likely, according to a JLL report on the topic.

“The virus is untimely for China given that it’s the start of a new calendar year and the spread escalated during the country’s most important holiday of Chinese New Year in late January,” says Roddy Allan, chief research officer, JLL Asia Pacific. “This has made it more difficult for the Chinese economy to reopen fully.”

The coronavirus virus – which originated in Wuhan, China, in December late last year – has spread globally, with cases reported in Southeast Asia, Europe and United States. In China, factories, malls and tourism have been affected, adding to strains from trade tensions with the U.S. last year.

“The Chinese government understands the central role it plays to keep the global economy stable and has moved swiftly and decisively to manage the fall-out, avoiding a sharp correction,” Allan says.

Adding to the strain

While the final 2019 figures aren’t yet out, Asia Pacific’s gross domestic product likely slid to 5.8 percent last year compared to 6.3 percent in 2018, according to a World Bank report in October, due to the trade war and lower global demand for exports.

While the region’s real estate had a strong showing overall in 2019, rental declines were evident in key markets such as Hong Kong and Beijing.

“Even before the coronavirus crisis, investors were already exercising caution and seeking out sectors and markets which show signs of resilience amid ongoing political uncertainty and a gradual slowdown of the global economy. The outbreak has put this demand clearer into focus.”

Roddy Allan, chief research officer, JLL Asia Pacific

While looking to the outbreak of Severe Acute Respiratory Syndrome (SARS) in 2003 for hints on how markets could perform this year, investors should be cautious on reading too much into it, Allan says.

Mainland China’s economy is nine times larger now than it was in 2003, just before SARS hit Hong Kong in March 2003.

The country is also now the world’s top exporter and the second-largest importer, not to mention the world’s second largest economy; when SARS hit, it was the sixth largest.

Still, Allan foresees the coronavirus having a similar “sharp but short-lived” impact on the region’s real estate investment market.

“The impact on deal volume should be limited if the outbreak dies down in three to six months,” he says.

Transaction volumes may pull back slightly in the first half of 2020 as some investors take a wait-and-see approach and delay deals, but should be back on track by the second half of the year due to accommodating policies.

Roddy Allan, chief research officer, JLL Asia Pacific

Retail and hospitality vulnerable

Service industries have been among the first to feel the impact. On the hospitality front, the coronavirus has hit hotels in Hong Kong, Malaysia, Philippines, Singapore and Thailand and Australia, where Chinese tourists are among the biggest groups of visitors. Major airlines such as Cathay Pacific, Singapore Airlines and AirAsia have scaled back flights to and from China.

Retail in China, Hong Kong and Singapore is also expected to feel the impact as consumers avoid crowded places such as shopping malls, while major brands including Nike, Apple and Starbucks are closing outlets across China to prevent the spread of the virus among employees and customers, according to JLL.

“There is no escaping the fact that investor…

The real estate market of the Land of Smiles is characterized by its many and varied offers. It is hard to decide between the many villas for sale in the seaside resorts or the condos for rent in Bangkok. 

Here are a few tips to help you choose the best location for your residential investment, by city. 

Bangkok, the World’s most Visited City

For the 4th consecutive year in 2018, Bangkok has been the most visited city in the world. It is the point of arrival of most of the tourists of Thailand thanks to its two major airports, and welcomes many expatriates. 

Bangkok’s residential real estate market is very dense. Buyers and tenants can choose from many offers in all corners of the city. 

Sukhumvit is a preferred residential area for expatriates. There are many properties located on the BTS (Bangkok Skytrain) axes, which allows for rapid transit to the center. On Nut and Phrakanong districts are the most affordable while Thong Lo and PhromPhong districts are the most expensive. 

On the other side of the city, the Silom / Sathorn area hosts the Lumpini Park. There are several embassies, office buildings and luxury condominiums, and thanks to the MRT (Bangkok Underground), the zone is connected to the business district of Rama IX.

All these facilities make Silom / Sathorn the ideal area for wealthy professional expatriates. 

Between Sukhumvit and Silom / Sathorn, Ratchathewi is a central area with shopping malls including Siam Paragon, MBK and skyscraper office buildings. It is also here that the two BTS lines cross with the Airport Link, making Ratchathewi close to all transport, attractions and shops. 

Pattaya, a major tourist destination

Pattaya is a major tourist destination. But the city is more than just the center and its Walking Street. There are very good places to live in Pattaya all year round, in quiet residential areas. 

Living in Central Pattaya allows you to be close to activities, shops and major highways. However, the proximity of the Walking Street and the passage of tourists makes this area a noisy place to live. This is why we recommend a lesser known, quieter neighborhood for expatriates : the Pratumnak-Jomtien area. 

This southern district is close to the Big Buddha and Jomtien beach, cleaner and more pleasant than the main beach of Pattaya. You can find properties at 9 000 THB per month (270 €*) for rent or between 3 000 000 THB and 5 000 000 THB (90 000 € to 150 000 €*) for sale. 

Phuket, the Andaman Pearl

The Andaman Pearl is the island of Thailand with the highest number of visitors. Each beach  has its own atmosphere, and offers can be found just about everywhere. 

Depending on the needs, the atmosphere and the budget wanted, the place will not be the same. The center of Patong is the gathering place of tourism with its festive spirit. This area is ideal to be close to everything : beach, shops and water activities, and even recommended if you don’t have a car or a scooter to move around. 

For more peace and quiet, Kata, Karon and Nai Harn in the South of the island host a good expatriate community, with peaceful and authentic beaches. Bangtao beach is an attractive area for the wealthier, with restaurants, hotels and luxury beach clubs nearby. Finally, Kamala hosts the Millionaire’s Mile : as its name indicates, one can find many luxurious villas on the cliffs overlooking the sea. 

Koh Samui : luxury villas and five-star hotels

Both natural and modern, Koh Samui is a postcard island considered an upscale destination with its luxury…

According to the real estate consultancy, foreign investments into Asia Pacific are at a decade-high, making up 35 per cent of total volumes, mostly driven by private equity funds and large-scale transactions.

“Real estate in Asia Pacific has gained favour in the last year as investors continue to seek high yields and stability amid a climate of geopolitical uncertainty and slowing economic growth. As an increasing amount of capital is being allocated to real estate, we’re seeing more clients making larger-scale investments to expand their portfolios.”

Stuart Crow, CEO, Capital Markets Asia Pacific, JLL.

“Over the next two years, we expect global real estate transaction volumes to stay elevated and Asia Pacific to outperform Europe and the Americas with an outsized portion of global investor interest.”

JLL reveals five key trends that investors should look out for in 2020.

1. Logistics assets are a hot ticket

Investor appetite for logistics continues to pick up, meaning these types of facilities are held tightly. The result is that investors must become more creative in order to access quality assets.

“We’re seeing more investors form joint ventures with major established players. Some are taking partial stakes or even going into public markets. A recent example is Canadian pension fund OMERS’s cornerstone investment in ESR logistics platform when the latter filed to be listed on Hong Kong’s stock exchange,” says Mr Crow.

“Another avenue to accessing quality portfolios has been via the mergers and acquisitions route, with the likes of warehouse operator GLP, Viva industrial REIT and Propertylink REIT among some of the larger platforms to be acquired.”

2. REITS are the next to watch

In 2019, Asia Pacific REITs (Real Estate Investment Trusts) raised a record amount of capital at over US$14 billion, surpassing the previous record of US$13.8 billion in 2013.

JLL predicts that Singapore and India will see more REIT initial public offerings next year, mainly driven by their focused growth strategies and consistent trading performance. More strategic mergers and acquisitions will allow funds to grow geographically and deepen their investments into newer markets in U.S. and Europe.

“Looking ahead, REITs are likely to continue their strong trading performance and be highly competitive buyers of real estate assets. Size matters and we can expect to see more consolidation in this sector.”

STUART CROW, CEO, CAPITAL MARKETS ASIA PACIFIC, JLL.

3. Sustainability initiatives present investment opportunities

The next generation of buildings is set to become more ‘green’, with sustainable technologies to save on operating costs as well as innovative design to attract more occupiers and tenants, says JLL. Recently, Singapore-listed Keppel REIT has obtained a green loan facility to grow its green building portfolio.

Mr Crow explains: “We believe that governments in this region are sustainability conscious and proactive in transforming their cities to make them smarter and more livable. These initiatives present opportunities for astute real estate investors, either by acquiring or developing sustainable assets, or being a part of the city redevelopment process.”

Singapore, for instance, has started on its sustainability journey with the decentralisation of its CBD, encouraging the redevelopment of older office buildings into mixed-use integrated developments and reducing the use of private transport. Similarly,  Beijing has restricted the size of commercial developments in the central area and targets to reduce the population in its six central districts by 15 per cent from 2014 levels.

4. Innovative cities will dominate office markets

According to JLL’s latest Premium Office Rent Tracker, technology firms – particularly online…

Real Estate Investment Trusts (REITs) in the Asia Pacific region have raised a record amount of capital this year, as investors sought more defensive, yield-based stocks amid growing global economic and political uncertainty.

REITs in Asia Pacific have raised over US$14 billion so far in 2019, surpassing the previous record of US$13.8 billion in 2013, according to JLL data.

“This has been a particularly impressive year for REITs. Most major REITs are now trading at a premium to their underlying valuation, which has improved their ability to raise follow-on equity.”

JLL’s Nicholas Wilson, Head of Asia Pacific Capital Markets

Demand from institutional investors has also provided for a fertile environment for launching new REITs on public exchanges. Capital targeting the direct market remains plentiful, resulting in a highly competitive marketplace.

Initial public offerings (IPOs) that are seeded with well-managed core assets largely have been successful in attracting investors.

Sectors in the spotlight

REITs in the logistics sector have pulled in around a third of all capital raised, even though their current share of the REIT market capitalization stands at just 12 percent. This is because warehouses have become increasingly important over the last decade amid the rise of e-commerce, which requires speedy delivery of goods from a wide network of facilities.

A rapidly growing population and strong economic growth in the region have also given it a boost.

“The logistics sector remains the most in-demand asset class around the Asia Pacific region,” Wilson says.

“However, the level of transaction volumes is falling well short of demand. The supply of international grade-A logistics stock is also below requirement in most markets, so we’ve seen a huge amount of joint ventures and separate accounts targeting logistics development strategies around Asia Pacific.”

JLL’s Nicholas Wilson, Head of Asia Pacific Capital Markets

In contrast, retail REITs account for 24 percent of the Asia Pacific market. But they have raised only around US$800 million this year, representing a mere 7 percent of the total.

This is also largely due to e-commerce, which has introduced headwinds in a number of retail markets, hampering brick-and-mortar sales growth for the sector.

“Given that some major retail REITs are trading at a price-to-net-asset-value of around 0.8, there could be an opportunity to be found there,” says Wilson. “Investors are currently pricing in a lot of downside – perhaps a little too much.”

The new Land and Property Tax which will be effective from January 2020 onward, is another challenge for the Thai property market. 

One of the sectors that will be impacted is vacant land. There are still many unused sites in Bangkok. Owners of these sites will have to start paying significant taxes for the first time once the new land tax comes into effect in January next year.

Many of these owners want to avoid paying the higher rate empty land tax by developing some commercial use on these sites which will generate enough income to pay the new land tax so that they do not have to sell the land.

The risk for many owners is that in their rush to develop commercial use to avoid paying the higher tax rate they create a bigger financial burden for themselves by developing inappropriate loss-making developments.

Lacking expertise, experience and market knowledge, they may end up building something for which there is no demand and end up owing the bank far more than the cost of the property tax.

For many sites, commercial development of office, retail or residential for rent will not be feasible on the site because of either the location or size of the land. The site owners may also not have the commercial expertise or financial resources to develop the site themselves.

Landowners need to firstly see how much tax they will have to pay and then carefully examine their options to earn income from any development on their site.

For example, parking for rent may be the best solution in locations where people own cars but there is insufficient parking in their residences.

In many Japanese cities, it is common to see even small land sites being used for commercial parking for rent. The sites are covered in asphalt and have automatic parking systems usually run by a third party.

Although parking rates are much lower in Thailand than in Japan, developing car parking may be the easiest way to generate income on many sites with lowest level of capital outlay required from the owner.

A second alternative is that some owners will look at leasing out the site to a third party. Leasing land could be both for short term or long term but again there only certain locations where there will be development potential and demand from third party tenants.

For some landowners, finding additional revenue may simply be too hard and faced with the burden of the new tax, they may decide to sell. 

After 2019, we believe there will be more sites available for sale and the mechanism of demand and supply will reduce the difference between asking prices and what purchasers are able and willing to pay.

Another question raised but not yet has the clear answer is the definition and interpretation of land usage especially agricultural land, which will be taxed at a lower rate than other land use.  We will have to wait and see more details from supplementary laws which are expected in July 2019.

This is a special article written by Aliwassa Pathnadabutr, Managing Director of CBRE Thailand for The Nation’s Property dated 24 May 2019.

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