New market study, "Thailand Real Estate Report Q2 2011", has been published

April 1, 2011 - PRLog -- The recent political instability has been, and is likely to remain, bad news for Thailand's economy. BMI is expecting GDP to post some growth in 2010/11. Government consumption will be the main driver (thanks to the 'Strong Thailand 2012' stimulus package) and, probably, greater household spending. We note that measured unemployment remains low, but caution that this may be depressed by numbers of otherwise jobless industrial workers who have returned to work in their home villages in rural Thailand. Meanwhile, foreign investor sentiment towards the country remains bleak.

Even if there were no political crisis, the various protagonists in Thailand's commercial real estate sector would face challenging times. The basic problem, affecting all three sub-sectors, is one of gross oversupply of rentable space relative to demand. Our sources indicate that the vacancy rate in Bangkok's office sub-sector is around 25%. The city's luxury hotels face competition from condominiums that have been converted into Serviced Apartments. Elsewhere, the effective supply of office space has been swollen by businesses operating from homes. The Bangkok office sub-sector appears to be where oversupply is most acute.

Meanwhile, new projects continue to be completed. When we spoke to them in late 2010, our in-country sources suggested to us that they are looking for rental rates to move sideways, or increase marginally, across all sub-sectors. We note that, in mid-2010, they were looking for 5-10% rises. We think that the newer and less optimistic view is fair and reasonable. Our sources anticipate that yields will move sideways in the short-to-medium term. In essence, there will not be much movement in either rents or capital values.

Looking further into the future, we cannot see an obvious catalyst for a shift - either upwards or downwards - in yields. However, we note that yields are already much higher than they were three years ago. Thai property already carries a sizeable risk premium.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/128811_thailand_real_estate_re...


Report Table of Contents:

SWOT Analysis
- Thailand Real Estate/Construction SWOT
- Thailand Economic SWOT
- Thailand Business Environment SWOT
Real Estate Market Overview
- Table: Thailand's Real Estate Market - Historic Rents, 2009 And 2010 (m2/month, US$)
- Table: Thailand's Real Estate Market - Net Yields, 2010-2012 (%)
- Table: Thailand's Real Estate Market - Terms Of Rental Contract/Lease, Mid-2010
- Table: Thailand's Real Estate Market - Available And Vacant Space, Mid-2010 (m2)
Industry Forecast Scenario
- Real Estate Outlook
- Table: Thailand's Real Estate Market - Rentals, 2010-2012 (m2/month, US$)
- Table: Thailand's Real Estate Market - Forecast Net Yield, 2008-2015 (%)
- Thailand's Construction Industry Outlook
- Table: Thailand Construction And Infrastructure Industry Data, 2007-2015
- Table: Thailand Construction And Infrastructure Industry Data, 2012-2020
- Macroeconomic Outlook
- Table: Thailand - Economic Activity, 2006-2015
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Asia Real Estate/Construction Business Environment Ratings
- Thailand's RECBER
- Project Finance Ratings: Outlook For Asia Pacific
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Thailand's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Trade And Investment Ratings
- Table: Thailand's Top Export Destinations, 2001-2008 (US$mn)
Company Monitor
- Central Pattana (CPN)
- Italian-Thai Development Public Company Limited (ITD)
- Land And Houses
- Raimon Land
- Rasa Property Development
- TCC Capital Land
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.