Discussion on Real Estate Investment Trends for 2018 at the Seminar "Navigating the Real Estate Landscape for 2018" at SCB Investment Center

<\/p>

<\/p>

<\/p>

          Dr. Chatchart began by providing an overview of the real estate market for the past year, stating that single-family homes priced between 2-10 million baht remain in high demand, while duplexes and townhouses also have growth potential. Similarly, condominiums priced between 1-3 million baht continue to thrive due to factors such as the upcoming electric train stations expected to be developed until 2027, expanding further in the future to cover all of Bangkok. We will see condominiums and apartments near every train station, as consumers still seek convenient locations to avoid traffic congestion, along with other factors like the lifestyle preferences of the younger generation who enjoy urban living without needing extensive living space.

<\/p>

<\/p>

          Both Dr. Chatchart and Mr. Peerapong pointed out that areas along the green line (Mo Chit-Khukhot) and the orange line (Taling Chan-Suwinthawong) will be prime locations for investors, as these areas have a high population density and run through the Central Business District (CBD). Office buildings are expected to remain concentrated in the CBD and not expand into suburban areas, aligning with the large office development projects launched by major real estate developers over the past year.

<\/p>

<\/p>

<\/p>

          Mr. Peerapong predicts that the overall real estate market will rebound next year due to positive economic signals and a decrease in mortgage rates, which will broaden the customer base and make it easier for consumers to purchase middle-high range real estate products. He noted that individuals with salaries of 40,000-50,000 baht can now afford homes priced at 4-6 million baht. Mr. Peerapong believes that townhouses priced at 2-3 million baht will become increasingly rare in Bangkok due to the accessibility of the electric train, leading to higher land prices. In the future, the ratio of horizontal residences to condominiums will shift to 30:60, reversing the previous proportions.

<\/p>

<\/p>

          Additionally, Mr. Peerapong mentioned that mega-projects such as the high-speed rail connecting three airports (Don Mueang-Suvarnabhumi-U-Tapao) and the high purchasing power of consumers in Chonburi-Rayong will boost condominium sales, with minimal issues regarding financing. This will stimulate growth in the real estate sector and the country's industrial economy, positioning Thailand as a leader in the region.

<\/p>

          Dr. Chatchart confirmed that a market bubble is unlikely to burst, as consumers are currently less inclined to buy for speculation. He anticipates that the tourism industry and airports will be the main drivers of the real estate sector in Thailand, as evidenced by the prime locations around Don Mueang and Suvarnabhumi airports being major job hubs. Areas in Bangkok expected to improve include the Rama 2 area, where a new expressway will be constructed to facilitate easier access for residents. For those considering land near train stations, it may be wise to look for plots located 500-800 meters away from stations, as prices will be lower than those directly adjacent to the stations while still offering convenient transportation.

          Both Mr. Peerapong and Dr. Chatchart added that besides tourism, the U-Tapao area will become another global hub for aircraft maintenance (Maintenance Repair Overhaul: MRO) due to Thailand's central location in the region and its skilled labor force. If Chonburi can develop attractive living conditions and tourist attractions, real estate in the area will undoubtedly see significant growth.

          Mr. Peerapong stated that urban planning is currently a critical factor in determining land prices, as seen in Nonthaburi, where new land laws will complicate the development of housing estates or condominiums, leading to a freeze in real estate in the area that has historically housed Bangkok residents, resulting in increased housing prices in adjacent areas like Lam Luk Ka.

          Dr. Chatchart believes that currently attractive land includes areas adjacent to the orange and green train lines, as well as land in Khao Yai, due to the upcoming motorway to Korat, which will facilitate transportation, allowing travel from Bangkok to Khao Yai in under 50 minutes.

          Dr. Chatchart emphasized that now is an excellent opportunity for consumers to have a wide range of real estate and investment options, including purchasing condominiums for rental and investing through Real Estate Investment Trusts (REITs). Additionally, obtaining financing for real estate has become easier. However, it is crucial to conduct thorough research, utilize various platforms for information gathering, and make careful investment choices based on suitability, as there is no one-size-fits-all formula for real estate investment. Before investing, one should visit the area to assess potential capital gains, demand, location, surrounding job opportunities, market conditions, and other costs such as maintenance fees to achieve the best rental returns. For real estate developers, quality should be a top priority, as most customers are increasingly influenced by word-of-mouth, which reflects the quality and overall impression of the developer.

          This seminar provided valuable insights for members of SCB Private Banking<\/span><\/strong>, SCB FIRST<\/span><\/strong>, and SCB PRIME<\/span><\/strong> to experience comprehensive wealth management and investment functions at SCB Investment Center<\/span><\/strong>. Understanding the high-end customer segment, these individuals are passionate about enhancing their success through investments, and true investment success comes from knowledge. This includes access to global information, sharp investment strategies, and having cutting-edge investment technology at their fingertips, all of which are available at SCB Investment Center, which operates four locations: CentralWorld 5th floor, Central Plaza Rama 2 G floor, Central Plaza Nakhon Ratchasima 3rd floor, and Central Plaza Khon Kaen 2nd floor.