Fast Market Research

Thailand Real Estate Report Q2 2014 - New Market Study Published

Recently published research from Business Monitor International, "Thailand Real Estate Report Q2 2014", is now available at Fast Market Research

 

Boston, MA -- (ReleaseWire) -- 04/30/2014 -- As political protests continue in the Thai capital, the commercial real estate sector is in general proving resilient. However, our key downside risk for the sector this quarter is that the impact of the protests on investor confidence in the country as a whole increases.

While we believe that the commercial real estate market in general will hold up well in the face of the ongoing political turmoil in Thailand, the longer it last the more of an impact it will have. The Bank of Thailand cut interest rates, and its GDP growth forecast for 2014, again in March 2014, amid increasing concerns of the impact of the protests on investor confidence.

We note that the protests are beginning to have an impact on retail in Bangkok, with reports of declining retail sales and reductions in rents. However, in other areas we believe that investors may retain a view that bouts of political unrest, which have largely been confined to Bangkok, are 'the new normal' in Thailand, and the country's attractions may compensate.

View Full Report Details and Table of Contents

These include Thailand's location in the heart of South East Asia. From 2015 the ASEAN Economic Community is set to create a single market for the countries of the Association of South East Asian Nations (ASEAN). This should particularly support office and industrial real estate.

Meanwhile, Thailand is an enduringly popular holiday destination, and as such hospitality-related real estate is thriving. We are expecting an increase in the number of tourist arrivals into the country over the next few years, particularly as economies in the region recover from the global economic slowdown.

Thailand currently has a large number of property funds, but from January 2014 only real estate investment trusts (REITs) will be approved, and it is hoped that this will lead to the creation of a REITs market in the country. While there have appeared to be questions over how REITS will be taxed, there have been reports that some property firms are planning to list REITS in 2014.

Bangkok has been the centre of the political turmoil, but as the capital and the country's economic hub, we do see continued demand for space in the city, and note that the pipeline of retail developments continues to be strong.

The other two cities that we cover are key industrial areas, and in the long term we see them benefiting from the creation of the ASEAN Economic Community, which we believe will boost manufacturing and exports, and will encourage foreign direct investment into Thailand.

Recent Developments

- Since January 1 2014 property funds are no longer be allowed to make initial public offerings (IPO) on the Stock Exchange of Thailand. Instead, REITs will be used. There are already reports of REITs preparing to list, although we note that there are also concerns over a lack of clarity on how REITs will be taxed. -

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Business research reports at Fast Market Research

You may also be interested in these related reports:

- Russia Real Estate Report Q2 2014
- Croatia Real Estate Report Q2 2014
- Germany Real Estate Report Q2 2014
- Pakistan Real Estate Report Q2 2014
- South Korea Real Estate Report Q2 2014
- Japan Real Estate Report Q2 2014
- Australia Real Estate Report Q2 2014
- United Arab Emirates Real Estate Report Q2 2014
- Slovakia Real Estate Report Q2 2014
- Czech Republic Real Estate Report Q2 2014