Thailand - Foreigners Looking for Investments !!

Declines in the prices of land and residential projects have prompted some foreigners to expand their investments in Thailand's property market, especially condominiums.

According to a survey by The Nation conducted last week, foreign investors are confident that it is a good time to buy Thai property, both in Bangkok and upcountry.

Some have shown a strong interest in buying depressed assets, which are going for 20 to 30 per cent less than last year.

Interest is also being shown in undeveloped land for the purposes of developing residential projects, as land prices are down 10 to 20 per cent from last year.

Hub Soon Global Corporation Singapore subsidiary United Motor Works (Siam) has set up a joint venture with Chiwathai, called Chiwathai Hub Soon, to develop a low-rise condominium project. Worth Bt350 million, the project is called The Surawong by Chiwathai Hub Soon.

The company also plans to buy undeveloped land and take over existing residential projects worth nearly Bt1 billion this year and next, director Henry Heng said.

"We believe that Thailand's |property market [is attractive to] foreign investors, as land and |residential project prices are now cheaper than last year," he said.

Property management firm Akando, whose clients include Lizmans Property Fund, plans to take over a residential project on Rama IX Road in the capital worth Bt2 billion this year. The project is already under construction but the owner wants to sell. This follows Akando's purchase of three other Bangkok condominium projects in Lat Phrao, Suthisarn and Rama III Road, starting last year.

Managing director Joel Feldman said the company has a strong interest in buying or taking over property projects, with land and residential prices having dropped significantly because of financial difficulties faced by land and residential project owners. Almost all of these owners have lowered their prices in an effort to secure sales, he said.

"We believe this is a good time to invest in Thai property, because we expect the US economy to recover in the last quarter of this year, which should drive Thailand's economic recovery," he said.

ECC Group, a Netherlands-based retail developer, has set aside an investment budget of US$90 million (Bt3.24 billion) to develop a large-scale shopping mall called Promenada in Chiang Mai.

Chairman and founder Dion LJ Heijmans said revenue from shopping malls in Asia is projected to grow by more than 10 per cent a year, compared to growth of just 4 to 5 per cent for the group's Promenada brand in European markets.

Having chosen Chiang Mai for its first project in Thailand, ECC will next consider entering the Bangkok market.

Heijmans said construction of the Promenada on Chiang Mai's Ban Sahakorn Road would start by year's end, with the opening scheduled for the last quarter of 2011.

The group is also seeking a good location in Bangkok with space of at least 100,000 square metres for a two-storey shopping mall. Other potential locations include Phuket, Hua Hin and Pattaya, he said.

Source: The Nation