The overall theme of the conference was one of tempered optimism
Speakers at the first Property Report Congress Thailand 2016 have tempered optimism on the market, as experts see potential and also challenges facing the country’s real estate sector.
DDproperty.com, the conference’s official property portal, reported that Thailand’s commercial real estate is expected to witness an upward trend in the coming year as the market becomes stronger due to growing demand from consumers, according to local and foreign experts at the event.
The current market situation has been often been described as resilient, supported by the healthy luxury residential segment of Bangkok even as the overall state of the economy has caused some to be concerned.
“Although having been affected by global volatility, the impact of China’s slowdown and weakening demand in general over the past year or so, Thailand will remain on an upwards course in 2016 with several property firms projecting growth of around 5-10 percent with the Greater Bangkok luxury market expected to lead the regional resort areas into positive growth,” Clayton Wade, managing director of Premier Homes and Property Report Congress Thailand conference chairman, stated.
Thailand’s office sector could see an increase in both rental rate and occupancy rate, especially in Grade-A office space in Bangkok’s downtown area.
Dr Theerathon Tharachai, chief financial officer of Project Planning Service, noted that there is a huge potential in the office space for sales in the suburb area as well, especially in certain growth areas such as Rama 9 or Ekamai-Ramindra.
When it comes to Thailand’s retail and design, the focus is on quality rather than quantity as Thailand’s sluggish economy requires outlets to create special projects that connect with consumers.
“I wish I could paint a more rosy picture, but I do feel things will be very competitive as consumption demands are likely to remain laggard for the remainder of this year and next,” Vicharee Vichit Vadakan, co-founder and managing director of The COMMONS, one of the retail nominees at the 11th Thailand Property Awards 2016, said.
“In a weak economy, one is more likely to find stability and growth in more focused products. Truly understanding your customers and being honest and relevant to their needs is of essence.”