CBRE sees optimistic prospects for sector

Thailand's property sector still has good prospects for both domestic and foreign investors who are negotiating to acquire land and buildings worth up to Bt20 billion, says international property consultants CB Richard Ellis.

CBRE's managing director, Aliwassa Pathnadabutr said the company is in discussions with four property firms, local and foreign, to buy land and office buildings and residential projects in Bangkok because they are confident Thailand's property market still had room to expand.

One deal under discussion is a 4-rai plot of land opposite St Louis hospital on Sathorn Road. Bidding will open on June 12 with a starting price of Bt550,000 per square wah. A number of property developers have expressed interest, she said.

The other three projects being discussed are an office building, a hotel and residential development. These deals will be finalised in the second half of this year, she said.

"Although Thailand is facing political uncertainty, foreign investors still have confidence in Thailand because property prices are still lower than other areas in Southeast Asia," she said.

Excluding the four deals being negotiated, CBRE also plans to be sole agent for seven new residential projects worth up to Bt26 billion.

The company has signed up to manage eight new office buildings this year. Three of the projects include Athenee Tower, Interchange Tower and Chamchuri Square.

Aliwassa said that the company believed that demand for office space in Bangkok will continue to grow, as the occupancy rate is around 93 per cent. New office buildings are still under construction and may not be ready until 2011, so the company expects Bangkok will face a shortage of office space.

"After the election last year, foreign investors, especially multi-national firms, started to increase their investment in Thailand and open offices in Bangkok. As a result, strong demand for office space is expected over the next three years," she said.

CBRE has forecast business growth of up to 7 per cent this year compared with last year, Aliwassa said. "We believe that we will meet our 2008 target as we have already sold over 300 residential units with a total value of more than Bt6 billion in the first five months," she said.

CBRE is celebrating its 20th anniversary in Thailand and the company believes that the outlook for the property market has strong growth potential.