Post on 13-Jun-2020
Thailand Country Report
15 November 2013
Bandung, Indonesia
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1
Agenda
• Thai Economic Outlook
• Bangkok Property Update
• Recap: Our Service Offerings
2
Thailand: Economic Overview
• Slowdown in Economic Growth Expectation: The Thai real GDP is expected
to register a growth of 3.2% to 3.7% in 2013 (2012: 6.2%), due to a very high
base of the 2012 figure, post the flood crisis. The economy also experienced
weak exports during the second half of 2013.
• Inflation Stable: The Thai inflation has been tamed remaining below 3% while
unemployment is still below 1%.
• Weaker Baht: Thai Baht has depreciated (from THB 29/USD as of April 2013
to THB 31-32/ USD).
3
Thailand plans Massive $76bn Investment In Infrastructure by 2020
Route and Station “Concepts” for High-speed Rail in Thailand
4
Bangkok Mass Rapid Transit Map
Current and To-be (5 years from now)
Current To-be
5
Agenda
• Thai Economic Outlook
• Bangkok Property Update
• Recap: Our Service Offerings
6
Property Overview
• Slowdown in Property Sector: The property market performance in Thailand
was generally softened in 2013 due to declining liquidity as Central Bank has
tightened the housing loan requirements. Oversupply in some Bangkok property
areas is also a concern where developers continue to launch new projects closer to
future mass transit lines.
• Condominium Oversupply Becoming a Concern: In tandem with the moderate
overall property market performance, response to new launches in the Bangkok
residential market had declined. Local consumption power has been dampened
owing to Government 1st car incentive in 2012. The property market outlook for
property in prime area is still strong, also due to foreign investor appetite for
Bangkok condominium properties, supported by the weakening of the Baht against
other currencies. With more completions of residential projects, which have been
launches in the prior few years, it is expected to slow down in overall rental and
selling price growth.
7
Property Overview
• Office Outlook Positive: In the office/commercial market, the performance
continues to be robust in 2013 and is expected to continue so in the next few
years. The average occupancy rate of offices in Bangkok continues to increase to
89% in 2H2013. The limited good supply is the key driver on rental rate increase
where average grade A office can command about USD 25 per square meter and
that of grade B office is about USD 18 per square meter.
• Retails Outlook Stable: Meanwhile, the performance in the retail sector continues
to be strong in 1H2013. The average occupancy rate in Bangkok continues to be
above 95% in 1H2013. However, it will be a challenging year for retailers in
2H2013 and 2014 due to reduction of the purchasing power of consumers. Same
store sales of the whole sale players such as Tesco and Big C are experience a
negative growth.
8
Property Overview
• Hotel Outlook Stable-to-Positive: The hotel sector remained stable-to-positive
with tourist arrivals increasing by 17.5%, pushing average occupancy rates up for
all hotel grades. More supply is expected in the next coming few years by about
10% in terms of the number of room keys.
• REITs regulations are in the final stage of being finalized to replace Property Fund
in 2014, as a new vehicle for real estate fund raising.
• Overall, the property market will be more challenging year in 2H2013 and 2014.
9
Agenda
• Thai Economic Outlook
• Bangkok Property Update
• Recap: Our Service Offerings
10
Lynn Phillips Group Overview
Property is Our Business
Thai Property
Appraisal Lynn
Phillips Co., Ltd.
VPC Thailand
Established in 1987
•Provides property
valuation and land
surveyor services for
throughout Thailand
with 16 branches
•Approved valuer by
the Securities and
Exchange
Commission of
Thailand (SEC)
Thai Building
Surveyors Lynn
Phillips Co., Ltd.
VPC Thailand
Established in 2007
•Provides building
surveyor services
•Approved License
for Building Surveyor
by the Department of
Public Works and
Town & Country
Planning under
Ministry of Interior,
Thailand
JVS Financial
Advisory Co., Ltd.
Established in 1995
•Provides financial
advisory services to
both listed and non-
listed companies
•Approved Financial
Advisory by the
Securities and
Exchange
Commission of
Thailand (SEC)
PA Lynn Phillips
Co., Ltd.
VPC Thailand
Established in 1989
•Provides property
management,
research,
consultancy, and
agency services
•Approved agency
license under Real
Estate Broker
Association
Lynn Phillips
Mortgage Credit
Foncier Co., Ltd.
Established in 1977/
Acquired in 2006
•Takes deposit and
provides mortgage and
commercial loans
•Approved financial
institution license by
the Bank of Thailand
(BOT)
•Deposit insured under
the Deposit Protection
Agency (DPA)
Lynn Phillips
Asset
Management Co.,
Ltd.
Established in 2010
•Manages financial
institutions’ non-
performing assets
•Approved asset
management license
by the Bank of
Thailand (BOT)
Professional Services Financial Services
The VPC Thailand affiliates are independently operated
businesses and member firms of VPC Asia Pacific in association
with Cluttons, an affiliation of independent companies with 70
offices through more than 20 countries worldwide.