Business Economics Committee: Thai Property Market Update 2021

Business Economics Committee: Thai Property Market Update 2021

On January 29, AMCHAM Business Economics Committee presented the Thai Property Market Update 2021 to over 65 attendees. A panel of industry experts provided in-depth insights on trends and challenges of real estate and property development in Thailand post Covid-19. Business Economics Committee Leader, Luca Bernardinetti introduced guest speakers James Pitchon, keen amateur property observer of the Thai property market, Barny Swainson of Colliers International, and Dexter Norville of Jones Lang LaSalle.

James began with a frank assessment of the Thai property market during Covid-19, as well as the supply of Thai real estate properties underway. He spoke about an uptick in demand for the industrial logistics sector with the rise of e-commerce and highlighted the decline in demand for hotel, retail, and residential properties due to the shrinking expat population.

Barny shared statistics on the development of the luxury, residential, and office markets in Thailand. He echoed James’ assessment on the drop in foreign demand and its impact on hotels and Central Business District projects. He foresees 2021 as a difficult year for many developers with retail, offices, and hotel space adding but expects some recovery with domestic tourism and return of international tourists linked to vaccines.

Dexter deep dived into post Covid-19 drivers such as wellness, human experience, sustainability, relevant technologies, and strong healthcare system that makes Thailand an attractive destination for foreign investments. The panel also discussed strategies for older properties to reposition themselves to retain customers. Overall, the session provided some detailed analyses of Thailand’s real estate market.

The panel discussion was followed by a Question and Answer session moderated by Luca. Members asked questions on financial viability of future-proofing older infrastructure and on the future of foreign and data centric investment in Thailand.

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