Thailand’s transaction volumes for hotel investments in 2013 reached 337 million USD, an increase of 31% from the previous year. This is the strongest growth Thailand has seen since 2007’s Global Financial Crisis, reports Jones Lang Lasalle. This growth is due to improved hotel trading performance as well as an expansion of the domestic economy, renewed growth in corporate and leisure travel, improved connectivity and burgeoning outbound travel from mainland China.
Other countries around Asia have also experienced tremendous growth in hotel transactions, with Singapore, Japan and mainland China significantly exceeding market expectations for last year’s volumes. 2014 is expected to experience similarly outstanding demand, but lower volumes of transactions due to a lower supply.
Investments in leasing spaces has also seen major changes in Thailand as of late. Ticon Group, which develops warehouses and factories to lease announced it will be developing 1,000 rai of land around greater Bangkok, on an investment of 8 billion baht. While this is expected to bring in significant revenue, managing director Virapan Pulges said that those who have never invested in Thailand may be hesitant and cause delays as a result of the political unrest in Bangkok.
Political unrest has also caused the Thai SET-listed developer Property Perfect Plc (PF) to make the decision to focus more on properties within Thailand, and thus is selling the Kiroro Ski Resort in Japan. The sale will likely be taking place over the second quarter as it has already identified two prospective buyers: one Thai and the other Japanese. Although PF is selling, it is in the midst of 20 new projects which are worth a combined total of 23.2 billion baht.
