Thailand is currently one of the most exciting hubs for contractors in Southeast Asia today, with a construction market value estimated at USD41.4 billion last year, according to a white paper released last week by corporate strategy consulting firm Solidiance.
New buildings and infrastructures amassed throughout the kingdom at a faster clip over the last few years, a trend that would indicate an especially busy year ahead for Thai real estate.
Overall, the number of buildings in the country increased 1.4 percent on average every year between 2012 and 2014.
Overview of Thailand’s construction sector
Thailand’s construction market is estimated to reach up to USD 41.4billion by 2016, with about USD 17.9billion coming from private investments and about USD 23.4 billion from the public sector, which includes the infrastructure segment.
Of the USD41.4 billion siphoned into Thai construction last year, USD23.4 billion can be traced to the public sector.
This mainly covers lavish public expenditure on infrastructure, aligning with the Thai government’s renewed thrust toward improving the country’s transportation system.
Since 2015, transport officials have executed plans to increase infrastructure investments in Bangkok’s mass rapid transit line, although delays have been widely reported.
Such increase in public works have literally widened the path to residential construction in the Thai capital. With public transit lines currently under construction, Bangkok’s city center is gradually expanding, Solidiance researchers contended.
The government has also approved the development of the Eastern Economic Corridor, which concentrates on construction of transport infrastructure, sea, and rail. This move will further support Thailand’s position as a major economic zone in ASEAN.
Land and Property Tax Forces Site Owners to Consider Options
The new Land and Property Tax, which will be effective from January 2020 onward, is another challenge for the Thai property market.
Condominium Developers Diversify into Recurring Income Properties
A slowdown in the condominium market has encouraged major residential developers to consider diversifying their portfolio into other property sectors such as office, hotel, and serviced apartment.
Retail in the age of social media
E-commerce is becoming easier and faster, making it increasingly popular. Recently, Instagram introduced a shopping feature that allows users to purchase products within the app.
Social media is transforming retail and expanding the e-commerce world. It goes without saying that the presence of social media in any retail store is critical to its marketing and sales reach.(more…)
Thailand among top five countries for salary hikes
Thailand is among the top five economies in the world to see real salary increases and is likely to see...
Thailand Ecommerce Market: Shooting For Success
At present, the Thai ecommerce market is valued at USD 3.5 billion. According to a Google Temasek study, Thailand’s e-commerce...
Aspire Set to Become First SME Neobank in Southeast Asia with US$32.5 Million Raise
The recent financing has been led by Mass-Mutual Ventures Southeast Asia with participation from Silicon Valley’s Arc Labs and existing...