Foreign investors 'undeterred' Some clients may however delay decisions due to politics: Colliers
Colliers International Thailand is handling 15 deals worth several billion baht, says managing director Patima Jeerapaet.
Colliers International Thailand's managing director Patima Jeerapaet.
"Some of the deals will be concluded in the first half of next year," he said, speaking about the company's business overview.
He said although Thailand now faced a hard time politically because of the conflict between the People's Alliance for Democracy and the government, there has been no effect on foreign investors who continue to show interest in expanding their investments in the Thai property market.
"Our customers are standing by their investment plans but some of them may delay their decisions. In the long term they will maintain their investment in Thailand," he said.
Patima and his partners signed a deal to become franchisees of Colliers International in February last year, renaming their existing firm, Pasupat Group, as Colliers International Thailand and increasing its registered capital from Bt3.5 million to Bt20 bil
lion. The company increased its capital to Bt60 million in May.Colliers International Thailand focuses on six businesses
- property agency, development consultancy, valuation, research, property management and investment.Up to 30 per cent of revenue comes from development consultancy, 25 per cent from its property agency, 25 per cent from its valuation business and the rest from research and prop¬erty management.
Patima said demand from foreign investors in the property market in Thailand had grown, especially in commercial buildings, residential and hospitality businesses.
Bangkok is still the main location for foreign investors followed by tourist destinations, such as Phuket, Pattaya and Koh Samui.
As a result, the company plans to open a new branch in Pattaya in the last quarter of the year.
Patima said earlier some foreign investors had moved their investments from Thailand to Vietnam and China. But they have learnt that Vietnam and China do not have facilities to support their businesses com¬pared to Thailand. Investors in Thailand include companies from the Middle East, Hong Kong, Europe, Australia, India, Pakistan and South Africa.
"Our customers are negotiating jointventure deals with local prop
erty companies, which will be signed by the first half of next year, creating investments worth several billion baht," he said.Patima said propertyagency busi
nesses of local and international companies recorded an aggressive growth of between 20 per cent and 30 per cent a year.The government also needs to change its leasing policy for foreign investors, extending the lease period from 30 years at present to between 50 and 90 years.
This will make it more attractive for foreign investors to increase their investments in Thailand and ensure better compliance with the laws.
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