Connect with us

CB Richard Ellis’ Wish List for the New Government

The property industry is one that many past governments have neglected and left to fend for itself, although it is a crucial element of the economy and forms the basis of many other businesses. A boost in the industry will assist in job creation and stimulate related industries such as tourism, banking, construction, raw materials, etc. As today is election day, we have prepared a checklist for whoever forms the incoming government to consider. INCREASE DEMAND FOR OFFICE SPACE Prior to 2004, demand for office space ranged from 200,000 to 300,000 square metres per year.

Boris Sullivan

Published

on

The property industry is one that many past governments have neglected and left to fend for itself, although it is a crucial element of the economy and forms the basis of many other businesses. A boost in the industry will assist in job creation and stimulate related industries such as tourism, banking, construction, raw materials, etc.

INCREASE DEMAND FOR OFFICE SPACE

Prior to 2004, demand for office space ranged from 200,000 to 300,000 square metres per year. However, in 2005 demand dropped to below 100,000 square metres and reached the bottom in 2009 at 46,000 square metres.The office sector is stagnant and lacks the stimulus to grow, but it is an important sector that directly affects other property sectors and offers jobs for new graduates. The majority of office tenants are multinationals, which create not only job opportunities and transfer of technology, but also rental demand from expatriate tenants for apartments and condominiums.

This is an extract from the article “A Wish List for the New Government”, to read more please click here.

SPUR FOREIGN DEMAND FOR THAI PROPERTY

The Thai property market has great potential to draw in foreign investment and appeals to investors in terms of location, price point and lifestyle. Since the 2008 global economic crisis,foreign demand has slumped and has yet to return. There are multiple ways the government can stimulate foreign demand for Thai properties.

With a 49% foreign freehold ownership quota, many condominiums in a foreign-dominated market face a halt in sales as the quota is filled

The idea of leasehold term extension has been floated time and again, but no government has seriously considered it.

A market such as Phuket is losing its competitiveness to regional rivals such as Cambodia and Malaysia which both offer 99-year lease terms. An extension of the lease term will lift demand for luxury and high-end villa properties,which will then generate additional tourism receipts.

An increase in foreign ownership quota for condominiums can also be applied to selective resort destinations where the majority of property demand is foreign, such as Pattaya and Phuket.

With a 49% foreign freehold ownership quota, many condominiums in a foreign-dominated market face a halt in sales as the quota is filled,while no local demand is generated for the remaining units. An increase in the foreign quota beyond 49% would assist developers in these markets.

A key factor that will facilitate foreign investments is for local banks to offer mortgage facilities to foreign purchasers. Amending the 1991 Condominium Act to relax the requirement for fund transfers from abroad for property purchases by a non-resident will open up the sector to a wider foreign market as this would allow foreigners to obtain and use local funding for their purchases. The laws should be relaxed;local banks should be encouraged to offer foreign purchasers mortgage facilities, albeit at a premium and with stricter repossession  rules. This will trigger growth in demand ad prices, and boost the local banking industry.

Published on Bangkok Post dated 3 July 2011 by Aliwassa Pathnadabutr, Managing Director of CB Richard Ellis Thailand.

Comments

Corporate

How will recruitment change following COVID‑19?

Remote working, distributed workforces and a greater demand for flexibility are all factors affecting how businesses and candidates think about work opportunities

Daniel Lorenzzo

Published

on

At the start of the 2020 pandemic, recruitment wasn’t high on the list of priorities for many businesses. In fact, it was just the opposite – across the globe there were hiring freezes and the large-scale furloughing of staff.

(more…)
Continue Reading

Asean

ASEAN, Korea webinar to showcase youth perspectives on digital partnership

Asean News

Published

on

ASEAN, Korea webinar to showcase youth perspectives on digital partnership

SEOUL, 25 JANUARY 2021 – The ASEAN-Korea Youth Academic Webinar, held by the ASEAN-Korea Centre, is set to take place on 27 January at 2PM (KST).

(more…)
Continue Reading

Health

Thailand approves COVID-19 AstraZeneca vaccine for emergency use

The first lot of 50,000 doses of COVID-19 vaccine developed by AstraZeneca will arrive in Thailand early next month, after receiving approval from the country’s Food and Drug Administration (FDA).

Boris Sullivan

Published

on

Bangkok (NNT) – The FDA Secretary General Paisal Dunkhum, said today the FDA had approved the registration of the COVID-19 vaccine produced by AstraZeneca in Italy.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,633 other subscribers

Trending