A total of 454,814 residential units across the country were left unsold last year, with a total value of US$ 41 billion, according to Sopon Pornchokchai, president of the Agency for Real Estate Affairs.

The supplies in the Bangkok Metropolitan Region constituted 40% of the total units available and 55% of the total value.

These supplies included detached houses, semi-detached hoses, townhouses, shophouses, condominiums (owner-occupied apartments) and residential land subdivision catered by formal private housing developers in Thailand.

Bangkok has the largest unsold supply

The largest unsold inventory were in Bangkok with a total number of units of 91,600 units (20% of the total).  Chonburi in the east was the second with a total supplies of 34,400 units (8%) followed by Nonthaburi (32,700 units, 7%), Samut Prakan (25,300 unites, 6%) and Pathum Thani (22,600 units, 5%).

As a whole, the first five cities constitute some 45% of the total units left for sale as of end 2018  which would be entered into 2019; whereas, the Bangkok Metropolitan region (Bangkok and other five vicinity provinces) constituted 40% of the total supplies.

Considering the average price at USD 89,578, it was considered cheaper than that in Hanoi, Hochiminh City, Kuala Lumpur and Phnom Penh which were over USD 136,000.

 However, this average price would still be higher than that in Jakarta and Manila which were below USD 80,000.  Actually, there is no housing shortage in Thailand.  Most of the household can afford a house in an open market.

Sopon Pornchokchai,
President of the Agency for Real Estate Affairs

But the Bank of Thailand is concerned about the risk of weaker demand for condominiums from foreigners, Chinese buyers in particular, as the global economy slows, the central bank’s chief says.

According to central bank data, the proportion of condo ownership transfers by foreigners surged to 31% in the third quarter of last year from 27% in 2017 and 21% in the previous year. Money transfers made for condo purchases by foreigners reached 68 billion baht in the July-September quarter of 2018.

Dr.Sopon forecasted that in 2019, the supplies in the market would be down for some 10% in units or 15% in value due to there poorer state of economy, unclear political atmosphere as well as some major negative international impact such as trade war between China and USA.  Nowadays, 20% of the supplies in Bangkok were absorbed by foreign investors particularly China.  Another 15% were bought by speculators.  The real home buyers could be only 65% or two-thirds.

The post Ballooning unsold inventory casts shadow on Thai Property Market appeared first on Thailand Business News.

Source link : Ballooning unsold inventory casts shadow on Thai Property Market by Olivier Languepin

With Global Destination Cities Index: Indulgences, Mastercard takes a deep dive into where visitors spend the most on dining and shopping around the world.

The Mastercard Global Destination Cities Index ranks 162 cities in terms of total international overnight visitors and the amount spent by visitors in the destination cities in 2017.

With Mastercard Global Destination Cities Index: Indulgences, we look at the amount spent within those cities on dining and shopping. The amount isn’t insignificant, nor is the impact those dollars have on cities’ local economies and the wallets of travelers who go there.

Top cities for dining

Whether it be Emirati Harees in Dubai, paella in Palma de Mallorca, pad Thai in Bangkok or champagne in Paris, people are eating—and spending—in these four cities more than any others.

Cities such as Singapore and London are also in the top 10 for overall food and beverage spend, but it’s worth noting that travelers are spending a lower percentage of their travel budgets on food in those cities (12.9% and 17.6%), respectively.

Top Global Cities for Dining, Ranked by Dollars Spent

Top cities for shopping

GDCI: Indulgences reveals that travelers are also spending big in Dubai and London when it comes to shopping, whether purchasing clothes, souvenirs or other goods.

That said, visitors to London, Seoul and Johannesburg, in particular, might want to bring a bigger suitcase. International travelers to all three are spending at least 40 percent of their travel budgets on shopping.

Top Global Cities for Shopping, Ranked by Dollars Spent

There are eight cities on the top list for dining and seven cities on the top list for shopping that are also a part of the Mastercard Priceless Cities experiential travel platform where travelers from over 90 countries can access…

Source link : Bangkok among Top Destinations For Dining (3rd) & Shopping (6th) by Boris Sullivan

 Following yesterday’s tourism situation update urging ‘Tourists to exercise caution as Tropical Storm Pabuk approaches Thailand’, the Tourism Authority of Thailand (TAT) would like to reiterate that while the possible severe weather conditions have prompted temporary suspension of attractions and public services in some provinces in the South, tourism activities continue as usual in most parts of Thailand.

According to the Thai Meteorological Department’s weather warning, areas in the South that are expected to be affected by Tropical Storm Pabuk are:

• 4 January: Widespread rainfall with isolated torrential downpours and strong wind in Prachuap Khiri Khan, Chumphon, Surat Thani, Nakhon Si Thammarart, Phatthalung, Songkhla, Pattani, Yala, Narathiwat, Ranong, Phang Nga, Phuket, Krabi, Trang and Satun.
• 5 January: Widespread rainfall with isolated torrential downpours and strong wind in Phetchaburi, Prachuap Khiri Khan, Chumphon, Surat Thani, Nakhon Si Thammarart, Phatthalung, Ranong, Phang Nga, Phuket, Krabi, Trang and Satun.

Thai authorities continue to be on high alert to ensure the safety and well-being of all people. In preparation for the possible severe weather conditions, authorities and businesses have temporary suspended operations in some provinces in the South, including:

• The Department of National Park, Wildlife and Plant Conservation has closed 17 national parks in five southern provinces during 3-5 January, 2019:
  • Surat Thani: Mu Ko Ang Thong National Park, Than Sadet–Ko Pha-ngan National Park, Khao Sok National Par (Ratchaprapha Dam area), Tai Romyen National Park, Khlong Phanom National Park, and Kaeng Krung National Park
  • Chumphon: Mu Ko Chumphon National Park
  • Nakhon Si Thammarat: Khao Luang National Park, Namtok Si Khit National Park,
  • Krabi: Than Bok Khorani National Park, Mu Ko Lanta National Park, Mu Ko Similan National Park, and Hat Noppharat Thara–Mu Ko Phi Phi National Park
  • Ranong: Laem Son National Park, Namtok Ngao National Park, Mu Ko Ranong National Park, and Lamnam Kra Buri National Park
• Samui Airport is closed to all flights today, and Bangkok Airways has cancelled all flights to and from the airport on this date. Passengers are advised to contact the airline’s Call Center at 1771 or Assistance Center number at +66 (0) 2270 6698.
• Thai Airways International has advised passengers with travel schedules on the Bangkok-Krabi and Bangkok-Phuket…

Source link : Tropical Storm Pabuk : Thai authorities on high alert in the South by Bahar Karaman

2018 was a grim year for equities all round, as only two exchanges in all of Asia Pacific — Mumbai and Wellington — ended the year with positive returns.

Shanghai, (-24.9%) for the year to Dec 27, was the world’s second-worst performer behind Athens (-25.5%).

But according to Nikkei editors Thailand, for example, who raised its key interest rate for the first time in seven years, is among Asian equity markets likely to attract buyers if investors rethink their portfolios as the U.S. economy slows and the Fed reviews its monetary policy.

Foreign investors were net sellers on the SET for the fourth year out of the past five (2016 was the exception with net buying of 77.9 billion baht).

But their net sales in 2018, at 287.45 billion baht, were more than 10 times the 2017 total of 25.75 billion, says the Bangkok Post.

For the year, Singapore and Philippine stocks also lost more than 10% each as trade tensions between the US and China sapped risk appetite and caused heavy capital outflows.

Indonesian stocks declined the least, falling about 2.5%.

The post Investors in limbo as Thailand’s SET ends 2018 down 10.8% appeared first on Thailand Business News.

Source link : Investors in limbo as Thailand’s SET ends 2018 down 10.8% by Boris Sullivan

The Deputy Prime Minister for Economic Affairs has revealed that Thailand’s GDP growth this year is likely to end above four percent and that over 2 trillion baht is to be invested by the state in mega projects next year. 

Speaking at Thailand’s Economic Outlook 2019, Deputy Prime Minister Somkid Jatusripitak pointed out that if 3.3 percent in economic growth is achieved in the fourth quarter, the nation will have ended the year four percent up.

He noted positive turns in negotiations between China and the US have benefitted exports and are likely to help the GDP in the fourth quarter hit 3.5 percent growth and full year growth to stand between 4.1 and 4.2 percent.

In 2019, Thailand is set to invest over 2 trillion baht in mega projects such as an urban high speed railway, dual railways and energy production in the Eastern Economic Corridor.

Somkid said the latter program must be closely watched as it is an important infrastructural development for the country.

The DPM remarked that it is likely the next government will be a coalition administration in which cooperation and a clear idea of the nation’s needs and future will be important.

He expressed the opinion that a new generation of politicians who do not engage in partisanship is needed to ensure national progress.

Source : National News Bureau of Thailand

The post Thailand sees strong year end economic growth appeared first on Thailand Business News.

Source link : Thailand sees strong year end economic growth by Boris Sullivan

The Asian Development Bank (ADB) has slashed its economic growth forecasts for Thailand to 4.3% this year and 4.1% next year as the global economy sputters.

The growth forecast for 2018 was trimmed from 4.5% predicted in September to 4.3% after the third quarter expansion slowed to 3.3% from 4.6% in the second quarter, according to an update of the Manila-based institution’s Asian Development Outlook report.

The Asian Development Bank (ADB) has retained its growth forecast for Southeast Asia at 5.1 percent for 2018 assuming robust consumption and infrastructure investment, says a report from the Asian Development Bank (ADB) released on Wednesday.

Growth in domestic consumption and private investment were offset by falling exports in the third quarter. On the production side, manufacturing growth decelerated by half to 1.6% in the three months through September from 3.2% in the preceding quarter, mainly reflecting slower growth in vehicle production, it said.

“Moderation in global demand for exports is, however, dampening growth prospects for the subregion, and particularly for Malaysia and Thailand, in 2018 and 2019,” the report says.

On the production side, the report says that Myanmar and Thailand benefitted from improved agricultural output, which languished in Indonesia, Laos and the Philippines in the wake of natural disasters and bad weather.

Moreover, the report says that manufacturing in Malaysia and Thailand was undercut by weaker demand from trade partners, but it expanded in Cambodia and Vietnam.

Export volume fell in the third quarter as the volume of agricultural exports dropped because of a high base effect, but also pressure from China–US trade tensions, a decline in domestic aquaculture production, and weaker growth in manufacturing export volume as economic growth slowed in some trade partners and tensions rose over protectionist trade measures.

Earlier this month, US President Donald Trump and Chinese counterpart Xi Jinping agreed to a 90-day truce on further tariffs as they try to negotiate a deal.

The ADB also kept its 6.6% and 6.3% growth projections for China, as well as its 7.3% and 7.6% growth expectations for India for both years.

The post ADB cuts Thai growth outlook to 4.3% appeared first on Thailand Business News.

Source link : ADB cuts Thai growth outlook to 4.3% by Bahar Karaman

A Thai academic says the nation needs to attract skilled foreign workers to work in the country, especially in the industrial technology sector, to overcome a shortage of skilled-workers.

In a seminar held by the Institute for Population and Social Research of Mahidol University, a university researcher, Ms. Sureeporn Phanpueng , revealed that Thailand needs around 2.3 million more skilled employees to work in innovative and technological industries, robotics, and the health and food industries.

The event was attended by academics and those from related fields. Ms. Sureeporn proposed that the government solve the problem by offering work visas to skilled foreign workers who take up positions in Thailand and by creating an attractive living environment for them.

She also wants the government to promote the transfer of technological know-how between foreign experts and Thai workers, as well as international education in Thailand.

The government is now accepting four-year visa-free grants and free work permits under the “Smart Visa” programme which is targeting industry experts and foreign technology investors.

Thailand’s Smart Visa Requirements Made Easier

The Thai government has improved requirements and conditions for the Smart Visa in order to provide greater convenience for foreign investors and experts

Source link : Thailand needs more skilled foreign workers by Olivier Languepin

Despite a temporary de-escalation of hostilities following the G-20 summit, the relationship between the US and China will remain contentious, says Moody’s Investors Service in a new report.

Narrow agreements and modest concessions in the ongoing trade dispute will not bridge the wide gulf in their respective economic, political and strategic interests.

At the G-20 meetings that concluded on December 1, the US and China agreed to continue trade negotiations, during which the US will suspend for 90 days the planned increase in tariffs targeted for January 2019, and China will increase imports from the US.

Despite this temporary de-escalation of hostilities, Moody’s expect the relationship between the world’s two
largest economies to remain contentious.

“The US and China have differences that are deep and multi-faceted, leading to diverging national and commercial interests,” says Moody’s Managing Director Atsi Sheth. “As China increases its influence in global economics and politics and the US retrenches its international engagement, the relationship between the two powers has entered a new, tense and uncertain phase.”

Differences in strategic objectives between the two will affect credit conditions in four key areas: Trade, technology, investment and geopolitics.

Neither country is likely to cede its key national priorities to defuse tensions. However, an economic cold war that leads to decoupling would be costly for both the US and China.

The rating agency says relations between the two countries will swing between conflict and compromise.

The impact of US-China tensions on credit conditions will be felt at the global, country, sector and company level. A worsening of tensions would disrupt global trade, erode the effectiveness of the international multilateral trade regime and dampen growth. Financial market volatility will affect valuations and borrowing costs for many debt issuers.

The post Contentious US-China relations are clouding global credit conditions appeared first on Thailand Business News.

Source link : Contentious US-China relations are clouding global credit conditions by Changyong Rhee