Real Estate

Real estate investors in Asia Pacific are steeling themselves for impacts stemming from the coronavirus, the threat of which would add to existing economic headwinds in the region.

While it’s too early to know exactly how commercial real estate markets could be affected, the increasingly important position of China on the world stage means economic repercussions are likely, according to a JLL report on the topic.

“The virus is untimely for China given that it’s the start of a new calendar year and the spread escalated during the country’s most important holiday of Chinese New Year in late January,” says Roddy Allan, chief research officer, JLL Asia Pacific. “This has made it more difficult for the Chinese economy to reopen fully.”

The coronavirus virus – which originated in Wuhan, China, in December late last year – has spread globally, with cases reported in Southeast Asia, Europe and United States. In China, factories, malls and tour…

The questions of who owns the air above buildings has long been a hotly contested issue in metropolises like London, New York and Hong Kong.

But as rapid urbanisation takes hold, and the amount of available space shrinks, more cities are waking up to the value of their air.

Air rights – which allow for the control, use or occupation of the space above a property – are increasingly being explored as an option to unlock equity or expand development potential, says Tom Aylward, a manager in Melbourne sales and investments at JLL.

“With land values surging, developers are thinking more creatively about how they maximise value,” he says.

In Melbourne, Australia, where the rate of population growth is among the highest in the world, recent negotiations in the city indicate developers are increasingly turning their eyes to the sky.

Property group Golden Age struck a deal with retail specialist Vicinity …

According to the latest Press Release on the Economic and Monetary Conditions for December and the fourth quarter of 2019 Bank of Thailand, the Thai economy slightly improved in December 2019 .

The value of merchandise exports, manufacturing production, private investment indicators, and public spending contracted at a lower rate. However, private consumption indicators expanded at a pace close to the previous month.

Meanwhile, the tourism sector expanded at a slower pace after the low base effect from the tour boat incident in Phuket last year abated.

Overall economic activity in the fourth quarter of 2019 continued to be on the decelerating trend

The continued contraction of merchandise export value affected domestic economic activities more evidently.

Private consumption indicators decelerated relative to the first half of the year, in line with softening non-farm income and consumer confidence despite supports from the…

The outbreak of the deadly coronavirus threatens to derail a fragile stabilisation in the Thai economy, already facing uncertain times amid the escalating US-China trade dispute.

According to Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce (UTCC), Thailand is estimated to lose 80 to 100 billion baht in income, mainly from tourism, because of the deadly virus outbreak, shaving economic growth by 0.5-0.7 percentage points this year.

The Thai government has set an ambitious target of 41.8 million tourist arrivals this year but coronavirus is likely to make those figures harder to achieve.

Thailand worst hit by coronavirus outside China Thailand has so far been worst hit by coronavirus outside of China

Thailand has so far been worst hit by coronavirus outside of China, with 16 patients and 61 others quarantined preemptively.

The government has already scaled back expectations. &…

BANGKOK (NNT) – The Stock Exchange of Thailand (SET) is pursuing its initiative to encourage SMEs and startup businesses to raise funds via the capital market, expecting general investment this year to be challenged by external factors, urging investors to properly manage the risks.

SET President Pakorn Peetathawatchai said the SET aims to promote balanced growth due to technological changes in the capital market this year, by streamlining its services at One-Stop Service points for registered companies, as well as providing opportunities in Thailand and abroad through capital market connections with Cambodia, Laos, Myanmar, and Vietnam.

The SET will be urging SMEs and startup companies to raise funds via capital markets, and improve regulations to provide better ease of doing businesses.

He said the overall investment scene in Thailand’s stock exchanges and capital markets will be subject to external challenges and fluctuation…

BANGKOK (NNT) – Thailand remained an investment destination for international investors last year, as reflected in the overall value of investment promotion requests in 2019, released by the Board of Investment (BOI) today, which exceed a 750 billion baht goal.

An impressive 59% was in the Eastern Economic Corridor, with China outreaching Japan to become the biggest international investor in Thailand.

Deputy Prime Minister Somkid Jatusripitak, today assigned the Board of Investment of Thailand (BOI) to introduce measures to oversee companies receiving investment promotion packages last year to proceed with their investment plans.

1,624 projects worth 756.1 billion baht

The BOI last year received investment promotion requests for 1,624 projects worth 756.1 billion baht, of which 506 projects worth 444.88 billion baht are located in the Eastern Economic Corridor (EEC), accounting for 59 percent of total investment promotion r…

The Prime Minister has given authority to the Thai embassy in Iran to evacuate Thai citizens in the country if it is considered necessary, as the tension in the Middl East rises following the US airstrike that killed a revered military commander Qassem Soleimani.

Prime Minister and Defense Minister General Prayut Chan-o-cha, announced today that the Ministry of Foreign Affairs also has a related protocol in place to deal with similar situations, but urged officials and Thai laborers to be prepared for an evacuation at a minute’s notice.

He authorized the embassy to arrange a chartered flight or to use one of Thailand’s military aircraft in the event of an emergency.

General Prayut also ordered concerned officers to closely follow the latest developments in the situation, citing possible ripple effects such as a surge in fuel or power costs.

Similarly, Labor Minister Momratchawong Chatumongol Sonakul, today instructed the la…

According to Bot’s latest Press Release, the Thai economy continued to be on a decelerating trend in November, prompting the Central Bank to use the exact same words from its previous Press Release on the Economic and Monetary Conditions in October, to describe the overall situation in November.

The value of merchandise exports continued to contract, mainly due to the economic slowdown of trading partners, consistent with deterioration in merchandise imports, manufacturing production and private investment indicators.

Public spending also contracted from both current and capital expenditures. Meanwhile, private consumption indicators continued to decelerate amid support from the government’s economic stimulus measures. The tourism sector continued to expand.

         On the stability front, headline inflation edged up from the previous month on the back of higher core inflation and lower contraction in energ…

The Bank of Thailand concluded that Thailand’s financial system remained sound, with commercial banks and insurance companies holding ample capital buffers. 

However, there remained some pockets where risks could continue to build up, especially given the subdued growth outlook both at home and abroad and the prolonged low interest rate environment.

 The Bank of Thailand announced the outcome of the joint meeting between the MPC and the FIPC on 16 December 2019 to assess risks to Thailand’s financial stability.

The committees highlighted four key issues as follows: 

1. New residential mortgages posted a positive growth for the first nine months of 2019.

Following the implementation of the loan-to-value (LTV) measure, mortgages granted to first-time homebuyers (servicing one mortgage loan) stood unaffected and the LTV ratio of these loans stayed high. Meanwhile, speculation and imbalances in the real estate market showed sig…