After investing 1 billion baht in the Greater Bangkok housing market during the past five years, Japanese developer Anabuki Kosan Group is focusing on real demand and targeting major provinces such as Chiang Mai and Khon Kaen.
Masaaki Kagawa, the group's management director, said its investment in Thailand's housing market would target five projects per year from now, focusing solely on real demand.
"If there are interesting markets outside Greater Bangkok, we will focus on major provinces with real demand, such as Chiang Mai and Khon Kaen," he said.
"Key destinations such as Phuket or Pattaya are not our interest as demand in these markets is mainly for vacation or second homes."
Since 2020, the group has invested a total of 1 billion baht in Thailand's property market through joint ventures with local developers.
This makes it their largest investment outside Japan and their third Southeast Asian market, following Vietnam and Indonesia.
The investments in Thailand included five low-rise housing projects co-invested with two partners, comprising MAI-listed developer Thanasiri Group and mid-sized developer The Enrich Group.
The projects, some of which have been sold out, covered nearly every segment, from affordable price ranges with Thanasiri Group to luxury single-detached houses with The Enrich Group.
With Thanasiri, the projects included townhouses and duplex houses in Bang Bo district, Samut Prakan, and in Mueang district, Nonthaburi.
The projects with The Enrich Group are located in the Ratchaphruek area of Pak Kret, Nonthaburi.
"We will continue investing in Thailand due to its flexibility and legal framework," Mr Kagawa said. "The housing demand in Thailand remains strong despite the Thai population having passed its peak."
"This contrasts with Japan, where the population peak occurred long ago and is now declining. In Japan, we provide senior living and healthcare, which we may consider introducing to Thailand in the future as Thailand is expected to follow a similar demographic trend."
Besides property development, senior living and medical services, Anabuki has been active in Japan's real estate sector for 60 years, with operations spanning hospitality and nursing care.