Increasing supply and higher selling prices will be the key drivers, while demand is forecast to improve slightly. The number of launches in Phuket is predicted to mount continuously and Thai developers as well as joint venture developments will be key players in the market.

According to research, demand across the market will continue to be driven by international homebuyers, investors and expatriates, especially those from China, Russia and Australia.

“Besides, the expectation to see a larger portion of buyers from South Korea. Average asking prices per sqm are anticipated to rise in all areas, while increasing demand for luxury condominiums may see prices approaching a new high in 2018, especially properties by the sea,” Knight Frank said.

It said one factor that is expected to significantly help boost the property market in Phuket is the Smart City project that aims to develop the province and to set the city up as the hub of the digital industry. The project is due to be completed in 2020.

The property agency notes that the market for detached houses priced higher than Bt20 million continues to grow even though sales of detached houses as a whole are experiencing a slowdown.

Plus Property’s managing director Anukul Ratpitaksanti, reveals that a 2017 survey of detached houses by the company’s research and development division found that supply for detached houses priced in excess of Bt20 million expanded by 34 per cent while demand grew by 19 per cent

This expansion was in line with data on the ever-increasing number of High Net Worth Individuals (HNWI) in Thailand. Such individuals place importance on the purchase of expensive detached houses situated in locations with a good environment and which offer privacy and ease of commuting.

Such locations are usually in the vicinity of multimodal transportation network development. An example is the northern Bangkok zone, which stretches from the Lat Phrao-Chatuchak area to the Pathum Thani-Lam Luk Ka area.

The zone is home to an expansion stretch (Mo Chit-Saphan Mai- Khu Khot) of the MRT Green Line as well as the SRT Red Line (Bang Sue-Rangsit) and will be one of the areas to benefit from the future linkage of the Airport Rail Link between Don Mueang and Suvarnabhumi airports.

CPN also announced a 5-year plan, investing around Bt100 billion to emphasise its position as a global player, with five projects in Thailand and overseas: The New Central World, Central Phuket, Central I-City, CentralPlaza Ayutthaya and Central Village. It will also modify all of its shopping centers to become ‘centres of life’ – communities and destinations where everyone can spend time in their own way.

Preecha Ekkunagul, president and CEO of CPN said: “In the era of digital disruption, the only way to survive is to adapt. CPN sees this change as a challenge and opportunity that will allow us to create and innovate new things again similar to what we have done over the past 38 years. With the evolving market, we would like to create a new chapter of the retail industry. Our new vision for the next five years is to ‘Co-Create Centre of Life,’ making CPN’s shopping centres as destinations for all. The important pieces of the jigsaw are our business partners and tenants who will co-create these new things for business success and sustainable growth through three main strategies: 1) Co-Creating Destination Concepts, 2) Co-Creating Digital Platforms and 3) Co-Creating Partnerships.”

Preecha added: “In addition, we will strengthen our businesses by investing Bt100 billion in the next five years in both domestic and international projects, to underline ourselves as a global player and set ‘The New Landscape’ for the Thai retail market. We will focus on five key projects that will reflect our ‘Co-Create Center of Life’ vision in the next two years:

The New CentralWorld will be a global must-visit destination, under the concept of ‘Central to Your World’, which will be launched in November 2018. This will clearly reflect our vision of ‘Co-Create Center of Life’ with a variety of destination concepts.

The creation of digital platforms and business initiatives with tenants will happen here first.

Central Phuket – a global must-visit destination catering for both uxury and leisure lifestyles of visitors with never-seen-before world class attractions: ‘Tribhum’ – the Mystery of Three Worlds’ theme park, which creates a 3D walkthrough adventure, ‘Aquaria’, which will be the largest aquarium in Thailand, and ‘Food Destination’ meeting all the needs of locals and tourists from around the world.

Central I-City – CPN’s first shopping center overseas, situated in a very high potential location near Kuala Lumpur, Malaysia. It is in a huge mixed-used project that the Malaysian government is turning into a perfect tourist destination.

CentralPlaza Ayutthaya – a new lifestyle destination in Ayutthaya that seamlessly blends the uniqueness and atmosphere of this World Heritage Site with modern society. This will become a tourism landmark for the province and a centre of life where people come to enjoy food, fashion, activities and relaxation. It will be a one-stop highway destination that will be open in December 2019.

Central Village –the first international luxury outlet in Thailand. It meets the lifestyle of the new generation. Outlets around the world are growing rapidly and have become ‘must visit’ destinations for tourists from all over the world and Central Village will be ‘a must-visit shopping destination to complete your trip.’

Half of the budget will be invested in Thailand, while the rest in Vietnam, Hoshino said at a press conference.

In Thailand, Tokyu Corp has a construction business under a joint venture with Ch Karnchang Plc, a residential business via joint venture with Sansiri Plc, and a retail operation with the opening of two Tokyu department stores in Bangkok.

The investment budget was unveiled as the company announced plans to plan launch two condominium projects in Bangkok valued at US$150 million (Bt5 billion) under its joint venture with Thailand-listed developer Sansiri Plc.

Hoshino said that for now the company’s Asean focus was on Thailand and Vietnam, but that it would later look to expand into other countries in the region.

He said that the company was also studying a possible move into the hospitality business in Thailand as part of discussions with Sansiri Plc, its Thai partner for residential projects in the country.

In Thailand, the company plans to launch an average of two or three residential projects worth about Bt5 billion a year with Sansiri Plc. The partners plan to build on the success of their first joint condominium project, the Bt2 billion taka HAUS, last year.

The joint venture firm is 70 per cent held by Sansiri Plc, with rest held by Tokyu Corporation Group.

The partners two condominiums planned for this year are in Sukhumvit Soi 50 and Ekkamai. They will be launched on the market in the second half of this year, and the units are aimed at Thai and overseas buyers, especially those from Japan, Hoshino said.

In Vietnam, the company is also focusing on residential projects, Hoshino said.

When asked about the company’s possible investment interest in infrastructure in Thailand with construction partner Ch Kranchang, he was guarded in his comments. However, he expressed an interest in residential development under the Makkasarn smart city project if the project master plan is approved.

“We are studying the possibilities for the Makkasarn smart city project and have sounded out our residential partner Sansiri on what we can do for the development of residential projects in the area,” he said.

Sansiri Plc’s chief operating officer, Uthai Uthaisangsuk, said that both of the new condominium projects to be undertaken with Tokyu Corporation Group come under Sansiri Plc’s business plan to launch 31 residential projects worth Bt63.2 billion a year.

Uthai said that two projects be launched in the second half of this year, with expectations of presales for at least 50 per cent of both projects within two weeks of the launch. He cited strong demand for investment in condominiums in Sukhumvit 50 and Ekkamai.

“After we launched taka HAUS last year we succeeded in selling 95 per cent of the total project value,” he said. “As a result, we are confident that the two projects will enjoy similar success, given the strong growth in the Thai property market this compared with last year.”

The condominium on Ekkamai road will be high-rise project with 38 storeys and it will open to presales in August. The eight-storey Sukhumvit Soi 50 will be launched on the market in July, Uthai said.

The company expects the return on investment for both projects will be to 15 per cent, he said.

Property firm Estate GURU Co Ltd plans to launch three new residential projects , worth Bt880 million, said the company’s managing director Sorayut Manasomjit said at press conference yesterday.

The three new projects are Wiztown Project at Petchkasem 91, Wiztown Project at Pattaya Khao Talo, and Wiztown Project at Khoo River Pluag Daeng, he said.

Listed property firm Golden Land Property Development Plc has launched four residential projects under the ‘Golden Empire Bang Kae’, worth a total of Bt6.1 billion.

The company’s managing director for townhome and twinhouse Pawaratch Udomsiri said yesterday that three of them will be launched in the third quarter of this year, worth Bt4.91 billion, with the last one set for the end of the year as part of the company’s drive for double-digit growth this year.

D’ Well Grand Asset will hold 60 per cent stake in the projects, with the balance going to Srethiwan Co Ltd, D’ Well Grand Asset Co Ltd’s managing director Thavanan Tanesdechsundhara said yesterday.

The projects will be launched on June 1, 2018.