Property developers from Japan, China, South Korea and Hong Kong are expanding their investment in Asean as the Asean Economic Community (AEC) takes full effect. Even some of Thailand’s neighbours, such as Singapore, are entering the country’s real estate market.
Local media reported that Japanese developers Mitsui Fudosan and Mitsubishi Estate Group have both invested heavily in Thailand forming joint ventures with local property developers. Mitsui Fudosan has invested more than THB20 billion in Thailand recently as part of a joint venture it formed with Ananda Development. Mitsubishi Estate Group has teamed up with AP to develop several condominium projects in the country. The value of these is estimated to be THB20 billion.
Singaporean businesses continue to invest in the Thai real estate market with both the residential and hospitality sectors being of interest. According to The Nation, Frasers Centrepoint has proposed a THB13.23 billion deal that would give it a major stake in a local property company. The proposed deal would see Frasers purchase 40 percent of Ticon Industrial Connection. If completed, it would be the biggest in the real-estate sector by a Singapore-based organization this year.
Chinese developers have also set up shop in Thailand with the most notable deal being King Wai Group’s THB300 million deal to take up a 45 percent stake in Keppel Thai Property earlier this year. The firm, a subsidiary of Singapore’s Keppel Corporation, develops residential projects in the Kingdom.
The flow of investment is a two-way street and Thai property companies are expanding their investment into other Asean countries as well. Industrial real estate developer Amata Corp. has already announced that it plans to expand into Vietnam and Myanmar.
“We see business opportunity to expand our investment in Asean countries following the AEC’s coming into effect, which will improve investment opportunity between Asean member states and also challenge foreign investors to expand their investment in the region,” Amata chief executive officer Vikrom Kromadit explained to the newspaper.
