Thailand Business News – Luxury Condo Rent in Thonglor

Property developers across Thailand are experiencing are increasingly attracted by hotel branded residences in order to spur price premium points and buyer demand.

Currently there are 29 new hotel residence projects countrywide with nearly 90% of these located in resort areas.

New research by consulting group C9 Hotelworks has pinpointed that the top 3 locations for completed and pipeline projects in their Southeast Asia Hotel Residences Market Trends report are Phuket (26 properties), Pattaya (10 properties) and Bangkok (9 properties).

With nearly 100 mainstream hotel residence projects and over 21,000 units completed, the next three years will see sector boldly expanding into new territory.

The reports states that between 2018 and 2020 new completed units will represent a massive 83% increase over existing supply.

Viewing how Thailand ranks in terms of competitiveness in the sector, with 41 completed projects to date, this accounts for 41% of the regions supply that stands at over 21,000 hotel residence units.

The country ranks first in Southeast Asia as an urban trend is shifting back to resort areas. Indonesia follows, whilst the rising star is Vietnam with Danang featured as a favored developer’s marketplace.

In Thailand, Phuket with 13 completed projects and another 13 in the works has a longstanding legacy of hospitality-led residences in such well-known ultra-luxury resorts as Amanpuri, Banyan Tree and Sri Panwa.

Though over the past few years Bangkok’s Chao Phraya River with marquee branded projects affiliated to the likes of global icons Four Seasons and Mandarin Oriental have pushed prices though the glass ceiling to an average of more than THB315,000 per square meter, while the national average selling price in the sector is just over THB101,000.

Linking the connection to brands and pricing premiums, C9 research across all the markets in the country show a demonstrated brand premium between 15-20%. Taking a close look at existing supply 92% of the supply are brand affiliated and we expect this preference by developers and property buyers to continue.

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In the newly released biannual Global Real Estate Transparency Index (GRETI) 2018 by property consultancy firm JLL, Thailand is ranked 34th, an improvement from the 2016 edition of the Index where the country was ranked 38th.

Compared to the other six countries from Southeast Asia covered by the Index, Thailand is ranked the 3rd most transparent real estate market in the sub region followed by Indonesia, Philippines, Vietnam and Myanmar that were ranked globally 42nd, 48th, 61st and 73rd respectively.

This 10th edition of the Global Real Estate Transparency Index (GRETI) contains the most comprehensive country comparisons of data availability, governance, transaction processes, property rights and the regulatory/legal environment around the world.

The 2018 Index covers 100 countries and 158 city markets, and the number of individual factors covered has increased by 36% to 186 factors.

Mrs. Suphin Mechuchep, Managing Director of JLL, says “Transparency across Thailand’s real estate markets has continuously improved over the last decade thanks largely to increased availability of and access to market data. While the growth of listed companies and real estate investment vehicles has contributed a lot to improving financial disclosures, greater regulatory enforcement, the planned introduction of a new property tax system and steps to digitise its land registry will underpin the country’s improvement in real estate transparency further.”

“The improved level of transparency represents a sign of growing maturity of Thailand’s real estate market. It helps owners, investors and occupiers identify opportunities and anticipate challenges more accurately, and consequently make better real estate decisions,” Mrs. Suphin adds.

Biggest improvements in Asia Pacific

“Asia Pacific as a whole has made the strongest transparency improvements since 2016 compared to the other four regions covered by the study,” says Dr Megan Walters, Head of Research, Asia Pacific at JLL.

“This is supported by developments in Myanmar, Macau, Thailand, India and South Korea.”
Myanmar has registered the most significant improvement globally, moving up 15 places to join the ‘Low Transparency’ group.

According to the report, the country continues to open up its economy as increasing investor demand translates into greater market intelligence.

For the first time, South Korea has nudged into the ‘Transparent’ tier, with heightened investor activity pushing improvements in data coverage and a new carbon emissions trading scheme.

Macau has also advanced with a focus on anti-money laundering, resulting in increased monitoring by financial regulators

Dr Walters adds: “It’s also worth noting that India’s reform-driven government has made significant progress in its agenda to improve transparency and reduce corruption. The Real Estate Regulatory Act, which was passed in 2016 and implemented in 2017, is a regional highlight. The country joins China, Indonesia and Thailand at the top end of the ‘Semi-Transparent’ tier.”

Asia Pacific shows fastest progress in real estate transparency

Asia Pacific’s mature economies such as Singapore, Hong Kong and Japan, have a significant opportunity to advance real estate transparency through proptech adoption. These leading investment destinations are on the cusp of the ‘Highly Transparent’ tier, and are poised to join the top group, which includes countries such as Australia, New Zealand, the U.S. and the UK.

“The proptech sector is growing fast, especially in Asia, though adoption is still relatively low compared to North America and Europe,” says Jeremy Kelly, Director, Global Research, JLL.

“We believe the Singapore government could play a key role in promoting proptech adoption through open-data initiatives and…

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