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Bangkok: Public Listed Real Estate Developers Dominating The Market

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Thailand’s economy, like many countries around the world, as seen its share of ups and downs in recent years. But as it begins to stabilise, and even improve, it has sent waves of growth throughout the country. Public infrastructure projects are underway in many cities, particularly Bangkok. New foreign investments have been made, creating a number of new companies who are choosing to build their businesses in Thailand, bringing jobs and money into the country. One market in particular that is enjoying its fair share of growth is the real estate market.
One of Thailand’s biggest real estate developers, Sansiri, is targeting a huge 40% growth in sales to foreigners in this year alone in comparison to 2015. It’s big developers like these, and Sansiri is one of the biggest, that will continue to dominate the Thailand real estate market.

Real estate market shows growth despite times of economic turmoil

Despite a period of economic turmoil that began in 2009, the real estate market of Thailand has seen steady growth for a number of years. In fact, since 2008, the market for condominiums has grown by five to twelve percent yearly. High-end condominiums have seen even more growth, despite seeing little popularity prior to 2009.
Much of the growth in the real estate market, and especially the growth of the high-end market, is due to an increase in interest from foreign investors. Thailand as a whole is still often considered a developing-nation, which means that prices are still low compared to other, larger nations. Affordable real estate in Bangkok draws expats from around the world who are drawn to the city’s ancient buildings, rich culture, and unique foods.

 

Public listed developers dominate the market

To keep up with the demand for real estate from local and foreign investors, a number of developers have continued to capitalise on building properties in and around Bangkok. As the economy strengthens, demand increases, and these companies continue to grow. These developers are a diverse group. But within this group, public listed developers dominate the market. It is worth noting that they also have larger borrowing power than smaller real estate developers, and more sources in which to fund projects. They are more likely to be able to partner with other large companies to collaborate and fund future projects, due to their strong financial positions.

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Development location critical

It is no longer a case of larger developers taking market share from smaller ones. They must compete with each other, say the Bangkok Post. The areas close to the main transit link, the BTS Skytrain, are also becoming more important to developers. Condominiums in these areas sell in an instant, so the value of real estate land means the developers with the cash to bid big and complete projects in quick time will continue to thrive.
As previously mentioned, Sansiri, one of Thailand’s biggest real estate developers, is eyeing up 40% of growth in sales to foreigners this year alone. Their property values have increased by an astonishing 30-50% in the last five years. Sansiri has allied with BTS Group Holdings, the operator of the Skytrain system operating throughout Bangkok and so vital to the everyday lives of millions of commuters. There are big plans for developments along the entire BTS route, and the new transport links planned. 25 apartments buildings are planned, worth $2.9billion along the railroad by 2019.
Trends in the Stock Exchange of Thailand, or the SET, show that many of these public listed companies are now among the fifty largest companies in Thailand.

 

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