06 Sep Foreign Companies Eager To Invest In Thailand Condos
An influx of companies from Japan, Hong Kong, and China invested in Thailand’s real estate market targeting condo projects located by Bangkok’s mass transit system, according to local media reports. The increased investment comes as the government plans to develop infrastructure projects over the next 5 years.
Tokyu Corp is one of many Japanese companies to increase investment in Thailand’s property market since 2013. The most popular way for these companies to expand their Thai real estate holdings has been to partner with Thai property developers through joint venture projects.
Combined initial investment capital from Japan to Thailand was estimated to be THB1.9 trillion in 2015 and this has likely increased. According to Board of Investment (BOI) statistics, Japan is Thailand’s leading foreign direct investor (FDI). The country contributes 39% of total FDI with Singapore the second largest investor. China, Hong Kong and Taiwan complete the top 5 with a majority of this investment being in condo projects.
Meanwhile Thai property companies have needed to adjust their approach to succeed in the current market. Costs and risks are higher and joint venture partnerships help defray some of this. They also provide them with bigger budgets for marketing efforts.