Colliers Press Conference 2014
18 June 2014
Colliers International Thailand the leading property consultancy in Thailand, the companyenters its 8thyear in Thailand picking up 6 awards at Thailand Property Awards in 2012 & 2013 for 2 consecutive years and cementing its strength into the real estate consultancy in ASEAN and continues its grow steadily amid the political situation in the country.
Mr. Simon Landy, Executive Chairman of Colliers International Thailand says, “We have always positioned ourselves primarily as an advisor to landlords, developers and end users, so, itis verygratifyingto have this achievement recognised by our peers and clients. Fromthis base, we have grown a strong brokerage business that always puts the client at the centre by providing straightforward and market-based advice.”
Business prospects remain bright given the strong fundamentals of the company and of the Thailand’s economy.Even though some sectors of the market have seen strong growth in the past few years, however the political situation in Thailand remains chaotic since last year until now, it will have an impact on the overall economy of the country, but the real estate business continues to grow further and it is expected to have improved after the coup.
The National Council for Peace and Order (NCPO) stopped all political problems of the past few years after they launched a coup against the government of Thailand. The NCPO was starting to restore confidence by setting up new a consultant and management team to solve long-standing problems, especially paying the money to rice farmers. This is the good for the country’s economy, too, because this money will spread to other parts of society through spending. In addition, the management team from the NCPO announced the continuation of all large-scale infrastructure projects.
Surachet Kongcheep, Associate Director of the Research Department at Colliers International Thailand, said “In the first five months of 2014, Thailand is still facing the economic slowdown that began in the second quarter of 2013 and this is directly affecting the property market. Particularly, in the Bangkok condominium market, the number of new condominiums launched in the first five months of 2014 was dramatically reduced compared to the same period last year. Approximately 16,617 units were launched in the first five months of 2014, a decrease of around 21.6% from the same period of 2013, with a total of 21,215 units. Other property markets were also affected, such as the retail market, where some sub-tenants are affected by liquidity problems, due to the shrinking purchasing power continuing from last year. The office market also continues to grow, although some multinational companies are postponing their investment plans in Thailand. Many foreign investors are delaying their decisions, because they need to wait and see the country’s direction, before continuing with their plans again. Foreign investors are still waiting for the official committee of the Board of Investment (BOI), as many foreign investment projects are still waiting for approval.”
“Most foreigners are still confident that Thailand will get back to a normal situation soon. In addition, foreigners who have invested in Thailand still have not moved to other countries and they have expansion plans in Thailand. The tourism market was also affected by the political protests at the end of last year and the numbers of foreign tourists significantly decreased after the state of emergency was announced and this directly affected the hotel market in Bangkok; other provinces, such as Phuket, that have international airports have not been affected,” Surachet added.
Political problems and the coup have not affected the property market much, considering the previous statistics, but they will affect the country’s economic situation and that will directly affect the property market, consumer confidence and purchasing power.