Investors from China are expected to play a bigger role in the Thai property market in the next few years even though they have remained relative inactivity recently, says JLL. There are some projects being jointly developed by Chinese companies in Thailand and more could follow.
“Chinese companies have been actively looking for opportunities to invest in a wide range of real estate assets in Bangkok and major resort markets,” says Suphin Mechuchep, Managing Director of JLL Thailand. “Despite the keen interest, investment activity by the Chinese to date has remained limited with most of the transactions being joint ventures in property development projects or acquisitions of stakes in Thai property development companies.”
One large Thai-Chinese joint-venture project is the Baba Beach Club Phang Nga being built by China’s Junfa Real Estate and Charn Issara Development, reports the Bangkok Post. That complex will have 16 hotel villas, 104 residential suites and 42 villas when completed.
The Terminal Phuket is a mixed-use development that has a major Chinese investor. China’s Royal Lee Asset took a stake in the project that consists of a condominium, a hotel, a community mall, an office building, and a clubhouse. The 30-storey Artemis Sukhumvit 77 condominium in Bangkok counts China Tianchen Engineering Corporation among its major investors.
“It is apparent that Chinese investors have a strong appetite for investment opportunities in Thailand,” says Suphin. “A rapidly growing number of enquiries that JLL offices in Thailand and China have received exemplifies the case. However, most of these investors have adopted a cautious approach at this point, needing more time to explore alternative investment options available and to understand relevant laws and regulations.”
Chinese investors are looking for all types of real estate projects in Thailand and won’t focus on one type of property or one location in Thailand. Instead, they will be looking at what offers the best returns.
“We expect to see more activity from Chinese investors in 2017 as the Chinese have invested heavily in overseas real estate and continued to look for opportunities abroad to diversify their risks,” says Mike Batchelor, Managing Director for Asia Investment Sales, JLL’s Hotels and Hospitality Group to the Bangkok Post. “Thailand is considered to be one of the most attractive markets in the region, particularly for hospitality-related investment.”
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