Massive Boost In Investors Sentiment In Q2 2014
According to the Investment Market Update South East Asia Q2 2014 report published today by DTZ, investors’ confidence towards Thai Real Estate has substantially increased within the second quarter of 2014.
In fact, after dropping for two quarters, Real Estate investments in Thailand, Malaysia and Singapore grew by 9.3% to THB156 Billion in Q2 2014.
Property investments in Thailand itself reached THB45 Billion, which is six times more important than Q1 2014. Investment activity in Q2 was boosted by a surge in activity in Thailand, driven largely by the disposal of income-generating assets into property funds, despite the prolonged political tensions. Also, it was considerably driven up by the acquisition of 12 hotels in key areas of Bangkok and Pukhet by hai Hotel Investment Freehold and Leasehold Property Fund (THIF) for an estimated THB26 Billion.
Q1 2014 shows a certain weakness towards Real Estate investments because of the political turmoil. However, since the Royal Thai Army took the power, stability seemed to have returned and investors’ confidence with it. In May, it was the first time confidence rose in 14 months. Indeed, the junta has paid rice farmers and is spending huge amount of money to boost the Thai economy by attracting foreign direct investments.
In addition, the demand for retail spaces and offices is constantly growing and rental fees are increasing in the Kingdom. Therefore, most investors still see Thailand as part of their long-term investment strategies.