Bangkok remains the biggest supply of office space in ASEAN

Bangkok contains most office space compared to other ASEAN commercial cities including Singapore according to research by Colliers International throughout Asia Pacific. Tokyo contains by far the greatest amount of space in Asia as a whole with around ten times the amount as Bangkok. Patima Jeerapaet, Managing Director of Colliers in Thailand asserted that Bangkok's strong position is a springboard for Bangkok to benefit from the ASEAN Economic Community (AEC) in 2015. "The service sector will be a key factor in the changes that will occur in 2015 and the fact that there is a significant amount of office space already and potential for more is a huge advantage for the city" he said.

Research by Colliers shows that Bangkok has around 7,900,000 square metres compared to Singapore's just over seven million. The other cities of Manila, Jakarta and Kuala Lumpur are further behind but not by much, according to Antony Picon, Associate Director for Research at Colliers. Most of the supply in Bangkok occurred in the 1990's. "Other cities are catching up but opening up the service sector in Thailand should lead to the next wave of office development" he pointed out. Mr Picon also explained that commercial activity in Thailand was centralized in Bangkok while in other countries it was more dispersed. "In Philippines there is a large office market in Cebu, Indonesia has Surabaya, Malaysia has Penang and Vietnam has an additional office market in Hanoi and Danang; in Thailand it is limited to Bangkok".

One of the key components of the AEC is the allowance for 70% ASEAN foreign equity participation in all domestic service industries by 2015. "It takes time for companies to really pay attention to the changes and make plans for benefiting from this, stated Mr Picon. "Thailand has many service sectors that can compete in the region such as architecture and IT but companies must hone the skills of their employees to become true regional champions", he said. "Language skills will be a key factor in all types of business in the future and this is one area that Thailand must move forward on", he stressed. The danger for Thailand, according to Mr Picon, is the wish to have greater protection from non-ASEAN companies using the AEC to further penetrate the market."The more protectionist clothing you wrap yourself in, the weaker you become" he warned. "Manchester United wouldn't be where they are today if they didn't play the likes of Chelsea and Liverpool", he contended.

Mr Patima recognizes the great potential for Bangkok to be a key service sector provider in the coming decades. "There is still plentiful land available for office development especially close to the mass transit lines and rentals will remain very competitive within ASEAN", he said. Mr Patima believes that concerted action by both private and public sectors should take place as soon as possible to ensure that 2015 will be a positive for the country. "If this happens then we will see a renaissance of the office market in the second half of the decade and Bangkok will continue to lead the way", he added.

EARTH HOUR 2011 : One hand for our WORLD

Colliers International Thailand would like to invite everyone to be a part of EARTH HOUR 2011 campaign to help the EARTH.

Earth Hour 2011, the annual ‘Lights Out’ event, will take place on Saturday 26 March 2011 at 8:30pm. By turn off the lights for 1+ hour. “We are creating a campaign to public and our clients to be aware and to understand Earth Hour initiatives. We would like to raise awareness about better environment and sustainability living on the public’s perspective. We want everyone to get involved and have the sense of belonging of their own contribution to the earth.” said Patima Jeerapaet, Managing Director of Colliers International Thailand.

“We start this campaign since 1st of March 2011 with 3 properties under our management, Deutsche Bank, Assumption University (Suvarnabhumi Campus) for AU Mall, Dormitory, Sport Complex, Car Parking and The Tepp Serviced Apartment and we are promoting this campaign with our clients during this period” he added.

Colliers International Selected By International Association of Outsourcing Professionals (IAOP) as Top Outsourcing Provider

-- Leading Real Estate Services Firm Makes Elite List for Sixth Consecutive Year --

Reinforcing its position as a best-in-class commercial real estate organisation, Colliers International has been selected as one of the world's top 100 outsourcing providers for the sixth consecutive year as part of the 2011 Global Outsourcing 100®. The list recognises the best outsourcing firms across multiple industries, as selected by an independent judging panel organised by the International Association of Outsourcing Professionals (IAOP).

The Global Outsourcing 100 is a critical resource for all companies seeking to do business with best-in-class service providers and vendors. In this way, The Global Outsourcing 100 is more than just a ranking - - it is a critically important referral tool for any company seeking to find top-quality business partners.

“It comes as no surprise to us that Colliers International has once again been recognised as a leading firm by the 2011 Global Outsourcing 100,” said Douglas P. Frye, Global President and CEO of Colliers International. “Our enterprising service philosophy and approach truly differentiates our professionals from other service providers. In addition, our shared culture and commitment to excellence has enabled Colliers International to accelerate the success of clients throughout the world.”

“To make this prestigious list for the sixth consecutive year is a great achievement for us and a true reflection of our company’s essence. At Colliers, our people are our asset,” said Piers Brunner, CEO of Colliers International Asia. “In Asia, we have carved a name for ourselves in service excellence and we will continue to advance further this year to become the undisputed top real estate organisation in the region. We look forward to collectively accelerating our success.”

Condominium growth matching demand in Pattaya's vibrant market

The Pattaya condominium development market is in good health according to the latest market report from Colliers International Thailand. Supply of units in 2010 was the greatest since 1997 with around 4,700 being added and launches for last year were also strong with over 3,400 being introduced. However take up remains robust throughout all zones so the new supply is being absorbed well. "There are no concerns regarding a bubble in Pattaya as many are talking about in Bangkok at the moment", said Antony Picon, Associate Director of Research at Colliers. "Take up was high at around 70% in Jomtien which reflected the popularity of the lower end products on the market there" he added.

The new darling of the condominium scene in Pattaya is Cosy Beach located in the Pratumnak Hill area, according to Mark Bowling, Senior Sales Manager at Colliers Pattaya Branch located on Second Road opposite Central Festival. "Several high rise condominiums are either currently under construction or in the relatively early stages of sales and marketing" he said. The Cliff by Nova Group was the first to enter the race in late 2009 and has successfully sold approximately 70% of its 427 units in little over 12 months, "a fantastic achievement taking into account the economic climate during that period", added Mr. Bowling.

Following on from the success of The Cliff, Nova Group recently introduced the similarly priced Legend on Cosy Beach, which together with five other proposed high rises in the same area, will increase the supply hugely in this hot spot by several thousand units between 2012 and 2013. Wongamat will also fuel future supply for 2013 with the introduction of three large scale luxury projects The Palm, Zire and W Tower.

The success of Pattaya stems from a number of factors maintains Patima Jeerapaet, Managing Director of Colliers, ranging from the introduction of retail outlets such as Central Festival shopping mall, a wider choice of trendy entertainment and dining venues, faster access to Bangkok and an increasing number of family friendly tourist attractions. "That is why many Thais are now purchasing property in the city like never before", he added.

Mr. Bowling was also keen to point out the number of local developers who are now well established in Pattaya, which provides buyers with confidence when purchasing off plan. "Local developers such as Nova Group, Heights Holdings, Iguana, View Talay and Rattanakorn Asset have a strong portfolio of already constructed products", he said. "Also two well known listed developers, Raimon Land and Major Development, are engaged in the market here and for others the city is appearing on the radar screen", he added.

Despite the continued strength in the Baht foreign buyers from the Euro zone, United Kingdom and USA continue to buy property in Pattaya in large numbers. Nevertheless spending power has been curbed with the most popular price range being between three to six million Baht. Mr Bowling added "There is plenty of availability in this market segment as we see designers and architects have given much thought to innovatively maximizing limited floor space more efficiently thus reducing sales prices without sacrificing location, facilities and overall quality".

The Russian market has become a force to be reckoned with especially in Cosy Beach and Wong Amat. Growth in tourism from India and Middle East also presents an opportunity but one for the future claims Mr. Bowling. "They mostly have a huge desire to buy property here, but are still very cautious and many have modest budgets. I do however see these countries becoming super powers on the Pattaya property scene in the near future, just as the Russians started off slowly several years ago" he explained.

Large building sales buoy Thailand property market in 2H 2010

Large building sales buoy Thailand property market in 2H 2010
Kanchana Paha | Mar 03, 2011

Thailand’s real estate investment market in the second half of 2010 remained buoyant with several major transactions being sealed, according to the latest report from Colliers International.

The THB35.5 billion (US$1.16 billion) sale of Carrefour retail stores to the French retail operator Big C Supercenter boosted up the Kingdom’s investment market sentiment last year amidst unfavourable conditions including political uncertainty and legal impediments.

Other transactions included sales of 302 units of Millennium Residence by City Development to Lee Don Assets at THB5 billion (US$165.8 million). L.P.N. Development managed to acquire two plots of land on Rama III (22,968 sqm) and Sukhumvit Soi 24 (5,690) for THB779.01 million (US$25.84 million) and THB387.33 million (US$12.85) respectively.

Rojana Property, the developer of the Madison condominium on Sukhumvit 41 bought a plot on Sukhumvit Road from Metrostar Property at THB512.96 million (US$17.01 million).

Two major commercial property transactions last year were sales of Pacific Place I and II buildings of Lehman Brothers to Thai Property at THB727 million (US$24.11 million), and a purchase of Siripinyo Building of the country’s leading developer Sansiri from Kasikornbank at THB540 billion (US$17.91 million).