Colliers' Thai unit eyes 20% growth in 'North Asean hub'

Simon Landy, executive chairman of the Thai operation, said the business’s prospects remained bright, given the strong fundamentals of the company and of Thailand’s economy.

“Even though some sectors of the market have seen strong growth in the last few years, Thailand is steadily emerging as a key hub for North Asean, and this will lead to more demand growth in the near future,” he said. 

“Myanmar could be a game-changer for Thailand, and that’s why we’ve been quick to move in and build on its growing business links with Thailand. This could put Thailand in the driving seat for the sub-region that we like to call the ‘CaLM’ countries – Cambodia, Laos and Myanmar,” he said.

He said Colliers continued to be the fastest-growing international property consultancy business, both in Thailand and internationally.

In Thailand, it has achieved a balanced portfolio with revenues split across its four main business sectors: advisory services (20 per cent), residential agency (28 per cent), commercial agency (27 per cent) and property management (25 per cent).

As the backbone of the business, the advisory services division has grown into a large multi-skilled team of advisers, architects, market and financial specialists providing services throughout the sub-region, he said, adding, “The team’s strength is recognised regionally by Colliers and we now find ourselves completing projects not only in Thailand but also in Myanmar, Cambodia, Laos, Vietnam and even Singapore.”

Meanwhile, the company’s agency services cover all sectors of the market. Most active this year has been its residential agency, where Colliers is now appointed on some 10 projects, such as The Portrait, as well as successful projects through its offices in Hua Hin (the Charn Issara/Sahapat Baan Thew Talay project) and Pattaya (most recently, the Orion project). 

In addition, the Thailand office is now firmly plugged into the Colliers network of 482 offices in 62 countries in offering Thai investors the opportunity to purchase prime residential units overseas, mainly in the UK and the US, said Landy.

The company’s property management services division has won several important new assignments this year, including its first commercial office tower, Le Concorde building on Ratchadaphisek Road with a total area of 26,000 square metres, and condominium projects such as D25 on Sukhumvit Road.

 

Multinational tenants

In commercial agency, Colliers continues to focus on representing leading multinational tenants in their search for office, retail and industrial space, while developing a strong investment business. 

This year, for instance, has seen three deals close in Phuket alone, which signals a strong move by the company into the hotel and leisure segment, he added.

Colliers’ hospitality expertise builds on the strategic strength of the Thai economy, where tourist arrivals continue to grow strongly. 

At the same time, Colliers is active in advising investors on how best to maximise the opportunities presented by the new real-estate investment trusts, which provide an alternative vehicle for Thai and offshore investors to enter the market, both locally and overseas.

The Asean Economic Community’s coming into effect in 2015 is also a new changing point for Thailand, said Landy, with Bangkok offering good potential, due to its location at the centre of Asean. 

The capital is likely to become an even more important centre after the AEC’s implementation, especially for tourism and related businesses, he suggested.

“Other provinces in Thailand also have good future potential after the AEC becomes effective, particularly bordering provinces as well as those along the main transportation routes, or along the economic corridors. Recently, we observed several movements from Thai and foreign investors in Mae Sot, Chiang Khong, Sadao, Ranong, Mukdahan, Udon Thani and Khon Kaen,” said Surachet Kongcheep, associate director of Colliers International Thailand’s Research Department.

“Many have started doing business occupying land and building factories and shop-houses, while some investors are still waiting for clearer development policies from the Thai government in some locations. 

“In addition, local administration offices in some border provinces, as well as the Industrial Estate Authority of Thailand, have plans to develop Mae Sot, Kanchanaburi, Chiang Khong and Sadao into special economic and industrial zones for Thai and foreign investors. The industrial sector is most likely to be promoted, as it is a major boost for office, residential and retail demand in the region,” he said.

“Other infrastructure development projects by the government, such as high-speed rail, the new motorway route from Kanchanaburi to Bangkok, the Friendship Bridges between Thailand and Laos and Thailand and Myanmar, also drive up interesting demand in some provinces,” he added.