Business Economics Committee: Developments in the Thai Property Market

On January 28 at the AMCHAM Citi Boardroom, guest speaker James Pitchon, previously an Executive Director of CBRE shared a presentation on Developments in the Thai Property Market and forecast for 2020. In addition to presenting some of the latest data on commercial and residential property in Bangkok and surrounding property markets, James offered insightful commentary on economic and social developments propelling property trends.

James, who calls himself an “amateur property observer” on LinkedIn is avidly followed by industry professionals for his knowledge and insights. Key takeaways from his presentation included an overview of the impact of the economic slowdown on property investments in Thailand. He shared statistics on the current market scenario that indicates a slowdown in residences and slower growth in co-working space. He also pointed out other factors such as new land and property tax laws and increasing interest rate, resulting in higher household debt for the Thai buyer, which has led to drop in sales and an oversupply of units in these markets. He also highlighted the rise of investment in the Thai real estate market by Chinese buyers, who continue to buy properties in Thailand.

Tourism plays a huge role in driving demand for property. In the hotel industry, statistics indicate that at 40.8 million tourists in 2020, tourism has grown 2.5% from 39.8 M in 2019, attributing this growth to most of the tourism influx coming from China and India.

His forecast on property trends for 2022, includes a higher demand for properties with low carbon footprint, mixed use development, more joint ventures and limited increase in land prices. He also considers the Thai Government’s focus on strengthening the Eastern Economic Corridor and infrastructure development in Thailand with new metro lines as success drivers in the development of the property market in the future.

Special thanks to Business Economics Committee Leaders Luca Bernardinetti, Mahanakorn Partners Group and Kaveepan Eiamsakulrat, K.E. Land. The presentation will be available on the AMCHAM member portal within a week from the event. For more photo coverage please visit AMCHAM’s Facebook page.