Thai property firm to expand business in Laos
Thai property firm to expand business in Laos
A major Thai property consulting firm plans to expand its business into Laos amid rising demand for accommodation and offices in the country.
The Century 21 Chief executive, Mr Kitisak Jampathippong announced earlier this week that it was holding discussions with a Lao registered firm about a possible joint venture in the real estate business in Laos.
“From now until 2030, the property market in Laos will experience huge movement and ver y fast growth, as there is a master plan for a new government centre, as well as high-rise and low-rise residential projects and business centres in Nong Ping,” Mr Kitisak told the Bangkok Post on Wednesday.
The Lao property firm which Century 21 plans to form a business partnership with is owned by is a large Chinese property developer investing in Laos, he said.
There are a number of Chinese companies investing in the development of property in Laos after the government granted land concessions to develop infrastructure in special economic zones, tourist sites, accommodation an d offices in Laos.
A number of foreign companies, in particular from Japan, are considering moving their production bases to Laos after learning that the country has become a WTO member, has a pro-private investment policy and that the cost of business operations is still low compared to other cou ntries.
Economists have said that Laos will be one of the sought-after investment destinations following the establishment of the Asean Economic Community (AEC), which will transform the region into a single market and production base.
Mr Kitisak said the contraction of the Thai property market was also one of the main factors which has encouraged the Thai firm to expand their business into neighbouring countries including Laos ahead of the establishment of the AEC, which is scheduled to come into force at the end of 2015.
“The Thai property market will contract if the political crisis stretches into the third quarter. Growth will be the lowest in the last two years,” he noted.
Mr Kitisak said that fewer than 10 new projects will be launched in Thailand in the first quarter, as many projects have been postponed to the second half. Condominium sales have dropped 40 percent and site visits have fallen by half as half as potential buyers delay their decisions.
“Condo projects to be completed this year may see risks as some customers are unable to get unit transfers. This group will possibly make up 30 percent since banks are not confident about approving home loans,” he said.
For any condo projects where 20-30 percent of units remain for sale, the developers plan to launch strong promotional campaigns in an effort to attract more potential buyers.
vientiane times
