Construction & Real Estate
From The Report: Thailand 2012
View in Online Reader

Delays and reconstruction work from 2011’s flooding have left Thailand’s contractors with a backlog of public and private projects in 2012. The construction sector is highly competitive, with major contractors focusing on efficiency and looking for public contracts rather than rely on riskier private sector work. Competition has also led Thai builders overseas, securing projects in Laos, Vietnam, and lately the opening economy of Myanmar. In real estate, condominium demand is growing as economic opportunities in Bangkok increase. Fears that the flooding would lead to an exodus of manufacturers from Thailand and a drop in demand for industrial real estate have proved largely unfounded as well, as the supply-chain benefits to clustering in Thailand generally outweigh the risks.

This chapter has interviews with Plew Trivisvavet, President and CEO, CH Karnchang (CK); and Apichart Chutrakul, CEO, Sansiri.

Articles from this Chapter

Overview

On firm footing: Continued growth expected with several rebuilding and new infrastructure projects in sight
OBG
plus

With contractors large and small knowing they must make money by being efficient rather than counting on high-margin projects, the construction sector in Thailand is highly competitive. Large builders tend to stick to government contracts and are selective in working for the private sector, which is in part a legacy from the 1997-98 Asian financial crisis. For 2012 the sector outlook is positive based on the likelihood of post-flood rebuilding, and a resumption of projects that had been delayed…

Interview

OBG talks to Plew Trivisvavet, President and CEO, CH. Karnchang (CK)
OBG
plus

Interview: Plew Trivisvavet How have the floods hurt the construction sector? PLEW TRVISVAVET: At the time of the floods in 2011, most of our major construction projects were in the nascent stage of development, so the recent floods only delayed them by some two to three months. In the wider sector, the complete rehabilitation of sites differs between companies; the floods generally caused logistical issues for suppliers, staff and subcontractors. There will also probably be upward pressure on…

Overview

Trending up: Robust demand is seen in residential and retail segments, while focus turns toward industrial land
OBG
plus

The domestic real estate market is currently marked by strong and resilient demand for condominiums in Bangkok and the spread of modern retail outlets such as hypermarkets, malls and big-box stores. However, during 2012, one of the most closely watched segments will be industrial land, as responses to the flooding in 2011 by manufacturers will indicate whether they remain comfortable operating from zones that could flood again in the future. PROPERTY PRICES: In 2011 price growth was subdued,…

Analysis

Industry insiders: A detailed look at the nation’s leading developers
OBG
plus

Property developers in Thailand are a diverse lot, ranging from large, diverse companies with land banks that will suit their needs for years to come, to smaller companies considered takeover targets because the economy is developing and margins are increasingly tight. Pruksa Real Estate, which specialises in building low-income units, is the largest developer in the country by sales; it surpassed Land & Houses, the largest diversified company, in 2011. CROWDED FIELD: In the condominium…