Property developers are confident the government will continue tax incentives for the real estate industry that were set to expire in late March. The Finance Ministry is likely to seek cabinet approval soon for an extension, said Atip Bijanonda, president of Thai Condominium Association.

Bangkok remains among the five cheapest locations for office costs in the world, according to a survey by the Singapore-based international property adviser DTZ Debenham Tie Leung. The 13th annual Global Occupancy Cost Survey 2009 found that Bangkok ranked 112th globally as measured by office costs per workstation, at US$2,580 per workstation per year, a 5% decrease from 2008. The report is a guide to total office occupancy costs in 116 business districts in 49 countries and territories. Bangkok also ranked fifth-lowest in the 2008 global survey.

The listed developer Asian Property Development Plc (AP) plans to launch 20 residential projects worth a total of Bt30b in 2010, an increase on last year, prompted by an improved financial status. AP would take advantage of its good cashflow to launch 15 low-rise projects and five condominiums in 2010, said Pumipat Sinacharoen, deputy chief finance officer.

The property business overall will record flat growth this year and there is a mild risk of a speculative bubble in low-cost housing, according to the independent real estate consultant Agency for Real Estate Affairs (AREA). The agency, which conducts field surveys twice a year, found 1,183 projects still open for sale as of the end of last year. Of the total,843 projects have at least 20 available units.

The entire property market except the industrial sector and serviced apartments is showing signs of recovery as the political situation, the government’s stability and policies to promote foreign investment are helping revive foreign demand. Aliwassa Pathnadabutr, managing director of the property consultant CB Richard Ellis Thailand, said 2010 had begun with better market sentiment. The improving global economic outlook and brighter perceptions of Thailand’s political situation, together with lower prices than other mature property markets had restored confidence in investing in Thai property.

An index measuring the expectations of property developers for the first half of 2010 has reached 76.5 points. That is the highest level recorded since the Real Estate Information Centre (REIC) began surveying property developers in the third quarter of 2006. Another REIC index in last year’s fourth quarter showed developer confidence stood at 57.8 points, up from a bottom figure of only 36.6 points in the first quarter. (The Nation)

Prices of residential projects close to Bangkok’s mass transit system and rents for grade-A office and retail properties in the central business district will rise by about 5% to 10% this year, says property consultancy Colliers International Thailand. Managing director Patima Jeerapaet said prices of luxury and mass residential units will this year increase by 5% and 5% to 15%, respectively. (Bangkok Post)

Homebuyers’ confidence has improved steadily in recent months with an increase in housing sales in the third quarter of the year. Samma Kitsin, director-general of the Real Estate Information Center (REIC),said consumer confidence had improved from the fourth quarter in 2008, in line with the private sector’s greater confidence.

Houses priced higher than 5 million baht will dominate the homebuilding market next year as demand rises and purchasing power improves, said Suratchai Kuenghakit, vice-president of the Home Builder Association.

The country’s second-largest developer, Preuksa Real Estate Plc (PS), plans to launch 15 townhouse projects next year to boost its share of the segment to between 70% and 80%. The projects will be under the Preuksa Ville brand with units priced from Bt1m to Bt1.5m.