Weekly Thailand Property News Update , EP 10 , 2023

BY Kittipong Kongthanarung

1.Data Center Thailand is booming as it expands market opportunities between the United States and China.

KnightFrank reports that Duterte Center Thailand is experiencing a surge in demand from the United States and China, aiming to expand its market in Thailand due to the increasing number of internet users and the growing need for digital infrastructure.

Thailand has experienced significant growth in recent years, driven by the rising number of internet users and the expanding digital infrastructure. Duterte Center has seen nearly a 30% increase in demand since late 2021, thanks to Singapore’s stringent regulations, allowing neighboring countries to benefit from the growing demand for data centers. Rapid market growth is expected as service providers from the United States and China announce their plans to expand in Thailand.

The data center market in Thailand has witnessed substantial growth in the first quarter of this year. The growth is attributed to the increasing number of internet users and the growing need for digital infrastructure. However, the country’s technology adoption per capita remains relatively low compared to mature markets such as Japan, Singapore, and Hong Kong.

To promote investment in the data center industry, the Board of Investment (BOI) has introduced attractive packages. For instance, businesses are granted an 8-year corporate income tax (CIT) exemption without restrictions. Additionally, qualifying agencies can receive an additional 5-year maximum tax exemption. These measures present excellent opportunities for both local and international entrepreneurs to establish a robust presence and meet the increasing demand for data centers in the country.

More info : https://www.bangkokbiznews.com/property/1073229

2. The Yellow-Pink Line Mass Transit Project: Boosting Investments in Bangkok’s Housing and Condominium Developments

Yellow Line Mass Transit System Opens for Public Trial – Pink Line Near Service Launch, Condominiums and Allocated Housing Plentiful, New City Planning Demolition in Bangkok to Utilize Land

Since 2014, there has been an increasing number of newly launched condominiums along the Yellow Line Mass Transit route. The clear construction plans for the project have resulted in more condominiums being opened for sale along Ladprao Road, surpassing the number of condominiums on Srinakarin Road, reaching as far as Samrong. Srinakarin Road, particularly from the junction to Samrong, has seen a clear increase in newly launched condominium projects, with ample undeveloped land available, especially for condominiums.

Upon surveying the entire route of the Yellow Line Mass Transit, including from 2019 until now, there are a total of 29,630 units. Compared to the past 10 years since 2014, approximately 20,000 units have been newly launched for sale. Out of the total 29,630 units, more than 85% have been sold, with prices ranging from 60,000 to 100,000 baht per square meter. However, most projects are sold for no more than 90,000 baht per square meter.

In the previous 4-5 years, most condominiums were still scattered along Ladprao Road, particularly in areas that had already seen significant community or prior development, such as Chokchai 4 and Bang Kapi. Additionally, the area that would serve as a common station for two mass transit lines, such as Lam Sali, immediately became a popular area, attracting major operators to the area.

The Srinakarin Road area may have more allocated housing than condominiums, but the area surrounding the common station and not far from large shopping centers, such as Seacon Square and Paradise Park, also saw newly launched condominium projects starting from 2019. There were no fewer than 5,000 units along the continuous Srinakarin Road to Samrong.

The key factors contributing to the presence of newly launched condominium projects in the Srinakarin Road area are the limitations of city planning. The majority of the area falls within the yellow and orange zones or low- to medium-density residential areas. There are limitations on developing tall buildings, with a floor area ratio (FAR) ranging between 3 and 5, except for a few areas where FAR reaches 7, such as the area surrounding the Huamak Station and the Airport Link.

Condominium developments along the Yellow Line and the Pink Line have been steadily increasing since 2009. As of the first quarter of 2023, there are approximately 26,270 units available for sale. The growth has been continuous, without any significant spikes in new condominium projects. This can be attributed to the fact that both the Pink Line and the Yellow Line are outer-ring suburban rail lines that pass through Bangkok. The majority of projects have achieved an average sales rate of around 86%, with prices not exceeding 90,000 Baht per square meter.

Therefore, the areas along the Pink Line and the Yellow Line, despite being light rail systems outside the city center, provide convenient connectivity to the main rail lines

More info : https://www.thansettakij.com/real-estate/567625

3.Foreign investors have been eagerly transferring condominium units during the first quarter, reaching a record high of 17,000 units in the past five years!

The condominium market is beginning to recover! After witnessing a significant increase in foreign transfers during the first quarter, surpassing 17,000 million baht, the highest in five years, there has been a 67% increase compared to the same period last year. China remains the top foreign investor, making impressive purchases with an average unit price of 6.5 million baht.

Wichai Wiratkapan, the inspector-general of the Government Housing Bank and the acting director of the Real Estate Information Center, stated that the overall situation of residential property transfers to foreign nationals in the first quarter of 2566 revealed a continuous recovery in terms of the number of units, value, and area. However, it still remains below pre-COVID-19 levels. The increase in transfer numbers during this quarter is a result of countries worldwide gradually opening up for travel, especially China.

“The reopening of countries and economic activities across various sectors globally entering a state of normalcy, coupled with the continuous recovery of the tourism industry in Thailand, has been a significant contributing factor. This has led to an improved performance in the number of units, value, and area of condominium sales and transfers to foreigners, not only in Europe, the United States, Australia, Russia, but also in Asia.”

The transfer of condominium ownership to foreign nationals throughout the country in the first quarter of 2566 showed a significant increase in both the number of units and their value. The number of transferred condominium units to foreign nationals nationwide reached 3,775 units, a 79.2% expansion compared to the same period in the previous year. This represents a continuous increase since the second quarter of 2565.

In terms of value, the transfers amounted to 17,128 million baht, a 67.6% increase compared to the same period last year. This value has been consistently high since the third quarter of 2565. Furthermore, the area of condominiums transferred to foreign nationals throughout the country expanded by 73.8%, reaching 168,664 square meters compared to the same period in the previous year.

More info : https://www.bangkokbiznews.com/property/1074678

Share This Article

Back to Archive

Privacy Overview

Necessary

Non-Necessary

Weekly Thailand Property News Update , EP 10 , 2023

Thank You

Privacy Policy