Bangkok's property market prepares for Asean

May 19, 2014 - PRLog -- Southeast Asia is preparing for economic integration in 2015 and it looks as if unification will provide Bangkok's property market with substantially benefits. Thailand and another nine countries are due to become part of the Asean Economic Community (AEC) in late 2015 and Thailand, as the region's second largest economy, has set itself up to become the prime business hub and investment in the property market is expected to grow.

Thailand's property market, especially Bangkok, will receive a huge boost when the Asean's members open their borders and start to enjoy the advantages of having free movement of goods, services and capital. The community will not however allow the free movement of labour and has restricted it to certain professions. There are also no plans to have a single currency as it has learned its lessons from the EU.

The union will form an economic bloc with a market of over 600 million people and it is set to become the eighth largest market in the world. Regional and international brands have been actively looking to open retail outlets in the shopping malls of Bangkok as he city is looking to become Asia's shopping mecca, with large-scale shopping mall projects already under construction.

While the Thai people are at present quite guarded due to persistent fears of job losses, it will certainly not be the case that the country will be overwhelmed by a flood of migrant workers as work permits will only be issued to a few professions. As the lingua franca of Asean is English, many Thais feel they are not yet equipped to deal with communications in English, although many SMEs have provided staff training to deal with language issues.

Leaders of the countries that will form the Asean bloc have also been looking at other issues, such as the rate of change and integration as the influx of new immigrants is bound to gravitate towards wealthier nations. There should be no diminution of any country's core values but rather, the focus is to attract workers that will add value and effect economically efficiencies by bringing a range of new talents and skills.

For Bangkok's property market, it is ideally placed, not only geographically but economically, to take advantage of this single market as it has convenient links to the other capitals and its main airport is to be expand to being able to handle around 100 million passengers per year.

Shopping malls in the city represent 59% per cent of the total retail market, with just under four million square metres of space. Big players in the retail business are focusing on online shoppers and are launching new campaigns, with older malls being renovated and new brands and shops are being updated to accommodate the needs of those who are looking for more contemporary lifestyles. Major retail developers and now eagerly anticipating the arrival of the community.

Bangkok's infrastructure is to be upgraded and new extensions planned for the mass-transit lines, which will be the main drivers of growth in residential development, especially new condominium projects, many of which are scheduled for completion by the time Asean comes on board.

There is therefore likely to be increased demand for Bangkok's property market for both rentals and sales and many of these projects are being built near to BTS or MRT stations. This has led to a rise in Asians buying and renting real estate in Bangkok and, added to this, Bangkok will experience many changes as the region's potential shopping hub.

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