Foreign investors, mostly from East and Southeast Asian markets, are resuming investment in Thai property now that the emergency decree has been lifted and the Bangkok shutdown is over.
Nukarn Suwatikul, associate director for investment services at the property consultant Colliers International Thailand, said eight foreign investor groups have approached the company in the past two weeks about investment opportunities.
"After learning that Thai political tensions have relaxed to a certain level after the revocation of the emergency decree and no more Bangkok shutdown, these investors asked us to find potential Thai partners to have a joint venture with," Ms Nukarn said.
Three of the groups were Japanese interested in industrial estates, hotels and residential development along the Eastern Seaboard.
Two were from South Korea and sought to invest in factories and hotels.
One each came from Hong Kong and Singapore to see existing Grade A office buildings and hotels in Bangkok that can generate income immediately. Their targeted return is 5-7% a year, against 1-3% in their home countries.
Another potential investor was a large Chinese property developer looking for plots in northern border provinces to develop large-scale projects.
Each investor group had a budget of about US$100 million (3.2 billion baht) for each project.
"These investors planned to enter late last year but delayed the decision due to political turmoil in Thailand since last November," Ms Nukarn said.
In the first quarter of 2014, Colliers closed five land transactions worth a combined 700 million baht. All were plots acquired by Thai investors looking to develop office and residential projects.
In the pipeline are 2.5 billion baht worth of deals that include land plots in Bangkok, Muang Chon Buri and Pattaya and a golf course in Chon Buri's Si Racha district.
Colliers aims to close deals worth 3.2 billion baht in 2014, up from 2 billion baht last year.
Surachet Kongcheep, associate director for research at Colliers, said the political uncertainty must be resolved as soon as possible, otherwise foreign investors will turn to other attractive countries in Southeast Asia.
"[We] need to monitor the situation very closely in April," he said. "If there is no violence, new residential projects being launched in the second half will be on plan and the take-up rate in the condo sector will pick up."
In the first quarter, 10,119 condo units from 14 projects were launched in Bangkok districts, down from 16,000 in the same period last year. Half were launched in March alone, reflecting improved sentiment.
The average selling price was 63,000 baht a square metre, down from 67,000 baht and 96,000 baht in the first quarter and fourth quarter of 2013, as all were on the fringe of the central business district.
Colliers expects 40,000 condo units to be launched in Bangkok in 2014. Last year it reported 50,900 unit launches.
At the end of February 2014, 45,000 condo units in Bangkok remained for sale. These included units launched during the past six years at selling prices of 40,000-80,000 baht a sq m.
Of the total available supply, some 27,000 units were ready for transfer and the rest being constructed.
This year, 70,000 condo units in Bangkok are scheduled for completion, with a take-up rate of 60%. If they are on time, 2014 will see the most condo units completed in a single year.
