BANGKOK: Thailand’s property sector will benefit from the China + One policy of US president-elect Donald Trump, which experts say will drive foreign firms to shift their manufacturing bases to Asean and Thailand to evade tariff walls and boost land sales in the industrial sector next year, property consultant JLL Thailand believes.
The policy, coupled with growing geopolitical tensions in several parts of the world, will direct foreign manufacturers to high-potential destinations such as Thailand’s EEC (Eastern Economic Corridor), Michael Glancy, JLL’s managing director for Thailand and Indonesia said on Wednesday (Nov 27).
“The real estate sector in Thailand is being closely watched and has become an area where global players are looking to invest. Compared to other countries in the Asia-Pacific region, Thailand is considered an attractive destination for foreign investors,” he said.
Anawin Chiamprasert, head of research & consulting at JLL, added that Trump’s policy will make Thailand more attractive among investors looking to establish warehouses and data centres in the Asean region to serve emerging markets.
Demand for data centre services is set to grow further, positioning Thailand as a potential digital hub, bolstered by government policies such as the Cloud First Policy and long-term investment incentives from the Board of Investment, he said.
Anawin said that the Thai property sector this year has been pressured by several factors, including the stagnating economy, rising household debts and the high rejection rate of housing loans.
However, while he believes there will be another cut in policy rate in early 2025 thereby relieving this pressure, purchasing power will not immediately recover.
He noted that the trend will change the demand in real estate next year, especially in the residential property sector, prompting customers to switch from buying to renting to avoid the hassle of applying for loans.
Anawin expects up to 40% growth in the rental condominium market in the inner Bangkok zone next year.
“Another factor that will further boost the condo market is foreigners looking to buy a second home in Thailand, especially now that they can buy up to 49% of the available units,” he said.
“Among the popular locations for this segment are Bangkok, Phuket and Pattaya.” - The Nation/ANN
