Managing director and CEO Siripong Sutharoj said a scarcity of real estate would lift fund prices significantly.

"Scarcity is what drives this market. Property funds will be the hot product in the future for sure. However, investors should study the situation in detail, because not all property funds are good products," said Siripong.

He said Sicco had trained its marketing staff in property funds, so as to be able to support the future demand. Also, the company has prepared an internal plan, the details of which have not yet been revealed.

"Companies may not need to conduct an initial public offering (IPO) to raise funds. Some of their assets, such as buildings, can be applied as underlying assets to set up a property fund. IPOs of property funds can replace IPOs of companies, as several IPOs have failed recently to make a positive debut, and there are not many big-capitalisation stocks left to list on the bourse."

With the unfavourable market, Sicco expected flat growth this year and has maintained its 2.25-per-cent market share by providing all of the products that the authorities allow the brokerage firm to operate.

Piyarat Setthasiriphaiboon

The Nation