Thailand Property Industry Report - H1, 2012
Thailand property report provides an overview of the property industry in the Asia-Pacific and Thailand, covering the five core sectors – residential, industrial, office, retail and hotel. The Thai property market has seen a recovery from the impact of the flooding crisis in Q4/2011, which delayed residential property project launches and shut flooded retail and industrial areas for renovation. The improving perception of Thailand’s political and economic situation, together with low market prices has strengthened buyers’ confidence in property investment in Thailand. In 2011, the market saw a fall in the number of property transactions and registered housing units due to the flood impacts. The housing stocks in Thailand grew 2.6% year-on-year to a total of 22.2mn units in 2011.
The report highlights the market trends and outlook of the property industry in Thailand. It examines the property regulations for foreign firms, real estate loans and housing loans, impact of political instability and floods, as well as other factors affecting Thailand’s property market, such as fiscal and monetary policy changes and volatility of the Thai baht. Rising interest rates, higher construction costs, massive floods in Bangkok and its vicinity and uncertain political environment have added pressure on the Thai real estate market.
The report also includes the major players in the property industry and their financial highlights and SWOT analysis. Most property developers, such as Quality Houses PCL (QH) and Asian Property Development PCL (AP), saw a slight decline in their operating margins due to the flooding crisis and lower property tax incentives as compared to 2010 which reduced consumer spending sentiment in Bangkok and its vicinity.
Key Points:
The report highlights the market trends and outlook of the property industry in Thailand. It examines the property regulations for foreign firms, real estate loans and housing loans, impact of political instability and floods, as well as other factors affecting Thailand’s property market, such as fiscal and monetary policy changes and volatility of the Thai baht. Rising interest rates, higher construction costs, massive floods in Bangkok and its vicinity and uncertain political environment have added pressure on the Thai real estate market.
The report also includes the major players in the property industry and their financial highlights and SWOT analysis. Most property developers, such as Quality Houses PCL (QH) and Asian Property Development PCL (AP), saw a slight decline in their operating margins due to the flooding crisis and lower property tax incentives as compared to 2010 which reduced consumer spending sentiment in Bangkok and its vicinity.
Key Points:
- In 2011, the number of property transactions declined 3.7% year on year, mainly due to the flood impacts, to 969,340 cases with a value of THB 34.6bn. The number of completed housing units also fell by 23.5% year on year to 81,735 units.
- The housing stocks in Thailand have increased continuously over the years to a total of 22.2mn units in 2011, up 2.6% year on year.
- The demand for industrial land reached a record-high in 2011 with sales of 5,757 rai, largely because manufacturers bought land to expand their production base or relocate from the flood affected areas.
1. INDUSTRY PROFILE
1.1 Sector overview
1.1.1 Asia-Pacific
1.1.2 Thailand
1.2 Residential sector
1.3 Industrial sector
1.4 Office sector
1.5 Retail sector
1.6 Hotel sector
1.7 Rental market
2. MARKET TRENDS AND OUTLOOK
2.1 Property regulations for foreign firms
2.2 Real estate loans and housing loans
2.3 Impact of political instability, massive floods and rising oil prices
2.4 Other factors affecting Thailand property market
2.4.1 Interest rates
2.4.2 Tax incentives
2.4.3 Construction costs
2.4.4 Unemployment rate and rising wage level
2.4.5 Volatility of the Thai baht
2.4.6 Mass transit and urbanisation
3. LEADING PLAYERS AND COMPARATIVE MATRIX
3.1 Leading players
3.1.1 Land & Houses PCL (LH)
3.1.2 Pruksa Real Estate PCL (PS)
3.1.3 Quality Houses PCL (QH)
3.1.4 Amata Corporation PCL (AMATA)
3.1.5 Asian Property Development PCL (AP)
3.2 Comparative matrix
3.3 SWOT analysis
4. TABLES AND CHARTS
Table 1: Asia-Pacific house price index (Q4/2011)
Table 2: Grade A / prime office rents and vacancy rates (Q3/2011)
Table 3: Prime retail rents in shopping districts (Q3/2011)
Table 4: Indicative industrial and prime luxury apartment rents (Q3/2011)
Table 5: Industrial sector situation (units) (2003–2011)
Table 6: Indicative industrial land values (Q1/2012)
Table 7: Principal office location in Bangkok
Table 8: Summary of tax incentives for the property sector
Table 9: LH five-year financial highlights
Table 10: PS five-year financial highlights
Table 11: QH five-year financial highlights
Table 12: AMATA five-year financial highlights
Table 13: AP five-year financial highlights
Table 14: Selected peer comparison of key financial ratios
Chart 1: SET index vs. property development index (Jan 2006–Jan 2012)
Chart 2: Property transactions: value vs. no of cases (2005–2011)
Chart 3: Annual property transactions by province (2005–2011)
Chart 4: Value of property transactions by province (2005 vs. 2011)
Chart 5: Completed housing units: Bangkok & vicinities (2001–2011)
Chart 6: Completed housing units by category (2010 vs. 2011)
Chart 7: Housing stocks by province (2005–2011)
Chart 8: Condominium supply, demand and vacancy rate in Bangkok (2003–2011)
Chart 9: Condominium unit supply in Bangkok by area (Q4/2010 vs. Q4/2011)
Chart 10: Average asking price of condominium units by area (2000–2011)
Chart 11: Office supply, take-up and vacancy rate in Bangkok (2000–2011)
Chart 12: Retail supply, take-up and occupancy rate in Bangkok (2000–2011)
Chart 13: Hotel supply in Bangkok by class and area (Q4/2011)
Chart 14: Trends of average occupancy rate, daily rate and revenue of selected upscale hotels in Bangkok (2003–2011)
Chart 15: Rents for apartment units by area (2003–2011)
Chart 16: Bangkok office rental rates by grade (2000–2011)
Chart 17: Bangkok retail rental rates (2000–2011)
Chart 18: Real estate: total loans vs non-performing loans (Q1/2008–Q1/2012)
Chart 19: Housing loans provided by financial institutions (2001–2011)
Chart 20: Retail prices: gasoline octane 95 vs. high speed diesel (Mar 2001–Mar 2012)
Chart 21: Minimum loan rate vs. inflation rate (CPI) (Mar 2007–Mar 2012)
Chart 22: Construction price index (Mar 2005–Mar 2012)
Chart 23: Thailand unemployment rate (2001–2011)
Chart 24: Average monthly wage (2000–2011)
Chart 25: THB vs. USD (Mar 2005–Mar 2012)
Chart 26: LH real estate revenue by segment (2010 vs. 2011)
Chart 27: PS housing bookings and units transferred (2006–2011)
Chart 28: QH revenue structure by business segment (2010 vs. 2011)
Chart 29: AMATA revenue structure by business segment (2010 vs. 2011)
Chart 30: AMATA industrial land sales performance (2007–2011)
Chart 31: AP backlog and net sales booking (2010 vs. 2011)
1.1 Sector overview
1.1.1 Asia-Pacific
1.1.2 Thailand
1.2 Residential sector
1.3 Industrial sector
1.4 Office sector
1.5 Retail sector
1.6 Hotel sector
1.7 Rental market
2. MARKET TRENDS AND OUTLOOK
2.1 Property regulations for foreign firms
2.2 Real estate loans and housing loans
2.3 Impact of political instability, massive floods and rising oil prices
2.4 Other factors affecting Thailand property market
2.4.1 Interest rates
2.4.2 Tax incentives
2.4.3 Construction costs
2.4.4 Unemployment rate and rising wage level
2.4.5 Volatility of the Thai baht
2.4.6 Mass transit and urbanisation
3. LEADING PLAYERS AND COMPARATIVE MATRIX
3.1 Leading players
3.1.1 Land & Houses PCL (LH)
3.1.2 Pruksa Real Estate PCL (PS)
3.1.3 Quality Houses PCL (QH)
3.1.4 Amata Corporation PCL (AMATA)
3.1.5 Asian Property Development PCL (AP)
3.2 Comparative matrix
3.3 SWOT analysis
4. TABLES AND CHARTS
Table 1: Asia-Pacific house price index (Q4/2011)
Table 2: Grade A / prime office rents and vacancy rates (Q3/2011)
Table 3: Prime retail rents in shopping districts (Q3/2011)
Table 4: Indicative industrial and prime luxury apartment rents (Q3/2011)
Table 5: Industrial sector situation (units) (2003–2011)
Table 6: Indicative industrial land values (Q1/2012)
Table 7: Principal office location in Bangkok
Table 8: Summary of tax incentives for the property sector
Table 9: LH five-year financial highlights
Table 10: PS five-year financial highlights
Table 11: QH five-year financial highlights
Table 12: AMATA five-year financial highlights
Table 13: AP five-year financial highlights
Table 14: Selected peer comparison of key financial ratios
Chart 1: SET index vs. property development index (Jan 2006–Jan 2012)
Chart 2: Property transactions: value vs. no of cases (2005–2011)
Chart 3: Annual property transactions by province (2005–2011)
Chart 4: Value of property transactions by province (2005 vs. 2011)
Chart 5: Completed housing units: Bangkok & vicinities (2001–2011)
Chart 6: Completed housing units by category (2010 vs. 2011)
Chart 7: Housing stocks by province (2005–2011)
Chart 8: Condominium supply, demand and vacancy rate in Bangkok (2003–2011)
Chart 9: Condominium unit supply in Bangkok by area (Q4/2010 vs. Q4/2011)
Chart 10: Average asking price of condominium units by area (2000–2011)
Chart 11: Office supply, take-up and vacancy rate in Bangkok (2000–2011)
Chart 12: Retail supply, take-up and occupancy rate in Bangkok (2000–2011)
Chart 13: Hotel supply in Bangkok by class and area (Q4/2011)
Chart 14: Trends of average occupancy rate, daily rate and revenue of selected upscale hotels in Bangkok (2003–2011)
Chart 15: Rents for apartment units by area (2003–2011)
Chart 16: Bangkok office rental rates by grade (2000–2011)
Chart 17: Bangkok retail rental rates (2000–2011)
Chart 18: Real estate: total loans vs non-performing loans (Q1/2008–Q1/2012)
Chart 19: Housing loans provided by financial institutions (2001–2011)
Chart 20: Retail prices: gasoline octane 95 vs. high speed diesel (Mar 2001–Mar 2012)
Chart 21: Minimum loan rate vs. inflation rate (CPI) (Mar 2007–Mar 2012)
Chart 22: Construction price index (Mar 2005–Mar 2012)
Chart 23: Thailand unemployment rate (2001–2011)
Chart 24: Average monthly wage (2000–2011)
Chart 25: THB vs. USD (Mar 2005–Mar 2012)
Chart 26: LH real estate revenue by segment (2010 vs. 2011)
Chart 27: PS housing bookings and units transferred (2006–2011)
Chart 28: QH revenue structure by business segment (2010 vs. 2011)
Chart 29: AMATA revenue structure by business segment (2010 vs. 2011)
Chart 30: AMATA industrial land sales performance (2007–2011)
Chart 31: AP backlog and net sales booking (2010 vs. 2011)
