Major industries/ Services : Residential Property Market

Overview
• The residential real estate business plays a vital role to the national economy, putting at least THB300 billion in circulation. Related businesses include construction, building materials, labor and finance. Real estate business cycles are primarily linked to national economic cycles, but may sometimes be pushed in the opposite direction by government stimulus. Such measures are taken in times of economic slowdown to head off disruptions of the real estate market and consequent impacts on businesses in the supply chain, and to alleviate burdens on homebuyers.

• The nation's principal market for residential property is in the Bangkok Metropolitan Region (BMR). As the nation's economic center with a population of approximately six million permanent residents plus workers from the provinces and non-Thai nationals, demand is high. Investment by the real estate business in BMR is about 1.6 percent of national Gross Domestic Product.

• Responding to intensifying competition in the BMR real estate market, large developers have been branching out into other areas with high potential such as Chiang Mai, Phuket, Songkhla, Surat Thani, Khon Kaen, Udonthani, Nakhon Ratchasima and Chon Buri.

• Residential properties are not only developed and marketed for Thai nationals with some developers now seeking buyers among the immigrant population, particularly in BMR and in provinces with major tourist destinations. This has been made possible by new legislation permitting purchase of residences by non-Thai nationals, (e.g. the Land Code (No. 12), B.E. 2551 (2008) and the Condominium Act (No. 4), B.E. 2551.)