Recently released market study: Thailand Real Estate Report Q1 2011

Dec. 6, 2010 - 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, after contracting by around 2.5% during 2009. Growth should continue in 2011. 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.

Meanwhile, new projects continue to be completed. The inescapable conclusion is that, in much of Thailand, pressure on commercial rents will continue to be downwards. Our in-country sources are looking for rental rates to increase by 5-10% in all sub-sectors over the coming year. We think that this is over-optimistic. Looking further, we anticipate that yields will rise as rents rise by more (or fall by less) than capital values. The divergent movements in yields in the three cities for which we have gathered data - Bangkok, Rayong and Pattaya-Chonburi - suggest that market participants are reacting in different ways to profoundly challenging conditions.

Interviews with our in-country sources were conducted in late January and early February 2010, and again in mid-2010.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/96493_thailand_real_estate_rep...

Report Table of Contents:

Executive Summary
SWOT Analysis
- Thailand Real Estate/Construction SWOT
- Thailand Economic SWOT
- Thailand Business Environment SWOT
Regional Real Estate Overview
- Table: Asia Pacific's Office Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
- Table: Asia Pacific's Retail Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
- Table: Asia Pacific's Industrial Markets At A Glance - Rents, 2009-2011 (US$ per square metre per month)
- Real Estate Market Overview
- Table: Thailand's Real Estate Market - Rentals, 2008 And 2009 (msq/month, THB)
- Table: Thailand's Real Estate Market - Net Yield, 2008 And 2009 (%)
- Table: Thailand's Real Estate Market - Terms Of Contract/Lease
- Table: Thailand's Real Estate Market - Available And Vacant Space (m2)
Forecast Scenario
- Real Estate Outlook
- Table: Thailand Real Estate Markets - Rentals in msq/month (THB)
- Table: Thailand Real Estate Markets - Forecast Net Yield (%), 2008-2015
- Construction Industry Outlook
- Table: Economic And Construction Data
- Macroeconomic Outlook
- Table: Thailand - Economic Activity, 2007-2014
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 Operational Risk Ratings
- Table: BMI Legal Framework Ratings
- Table: Annual FDI Inflows Into Asia, 2006-2008
- Table: BMI Trade Ratings
- Table: Thailand's Top Export Destinations, 2001-2008 (US$mn)
Company Monitor
- Central Pattana (CPN)
- Land And Houses
- Raimon Land
- Rasa Property Development
- Saudi Oger
- 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.