Thailand successfully mixes real estate and tourism

By Invictus “Tuts” Paradela
Cebu Daily News
May 27, 2008

CEBU CITY, Philippines – Bangkok, one of the major cities of Southeast Asia, is home to nine million people. As the capital city of Thailand, Bangkok is much like Manila with several component cities making up the metropolitan area. It is, as well, known for heavy traffic, pollution and big crowds of people.

Being of the same race as Filipinos, Thais look like us and often mistake us to be one of their own. But while they are Asian, their language has very little similarity with ours, if at all. Even their written alphabet is a complete stranger to a Filipino trained in the American system.

Thai culture has been quite preserved rather well throughout the centuries, having been one of a few countries in Southeast Asia which has never been colonized. Their rich and beautiful culture is quite visually evident in its temples and local art, and are presented and preserved through numerous cultural shows which are regularly made available to tourists and locals alike.

Tourism

Thailand is known as one of the major tourist destinations in Asia. The country accommodates more than 15 million tourists every year, dwarfing the 2 million tourists the Philippines gets annually. A visit to Thailand will easily show one why this is so.

The country is well endowed with nature and has relatively kept it well preserved and is one of the major attraction of tourists. As mentioned, the culture has also been relatively preserved and gives the country a look and feel which quite is unique and truly Asian. Thai cuisine likewise reflects that same uniqueness. Even to a Filipino who is Asian, the flavors and colors of Thailand is refreshingly new.

Thailand never runs out of activities for the family. From safari, to shopping, to oceanariums, to cultural shows, to beaches, Thailand has them all and more. One can actually have a full five-day schedule while in Bangkok alone and still not be able to do all the activities available.

Bangkok

Bangkok is the main gateway to Thailand. With its newly expanded airport, traveling to the country has never been easier. There are other international airports in Thailand, but the one in the capital is the busiest. It takes one right into the heart of Bangkok in just an hour or less.

While being a modern city with all the skyscrapers and modern amenities, Bangkok gives its visitors a peak into the Thai people's rich cultural heritage. A world class production called "Siam Niramit" introduces one to their glorious historical past. The venue of this production is somewhat their Cebu International Convention Center (CICC), which is a two-hectare lot of prime space in the heart of the capital. Then, they built a building which has been certified by Guinness Book of World Records to house the tallest stage in the world. Surrounding the building is a small park paying tribute to Thailand's traditional rural life showing its visitors the importance they give to their agricultural life.

Temples which dot the city are another testament to Thailand's rich cultural heritage and a tourist attraction in the city.

One can also indulge in spa services and of course shopping. The prices of goods are unbelievably low, especially for clothes, bags and shoes, even based on Philippine standards.

There is also a big ocean park in one of the major malls in the Bangkok, as in other cities of Thailand. Some malls hold several of the best known global brands from clothes to cars, brands that are not available in the Philippines.

Then there is a six-story building dedicated to nothing less than computers and electronic gadgets. Of course, the high life can best be experienced in Bangkok.
There’s also the Safari World, which is just an hour’s drive away from the capital. It’s a theme park and zoo that showcases trained animals which stars in their own productions.

There are several other sights to see, such as the famous boat market and other tourism destinations.

Real estate

The boom in tourism has been quite a help for the real estate industry. The recent completion of the Suvanabhumi Airport has improved the country's capacity to accept flights from different countries, adding a big boost to their already impressive tourism performance.

An expected annual growth of inbound arrivals of 6.3 percent is expected up to the year 2010 because of the airport. Even in cities outside Bangkok, like Pattaya, this has translated to a 17 percent increase the value of property related transactions in 2007 from the previous year. Phuket, another favorite tourist destination, has experienced an even higher 22 percent increase.

Bangkok is booming. Like in Cebu and Manila, projects get sold out even before their completion. There are actually still some previously unfinished buildings which are remnants of the 1997 Asian financial bubble which burst in a large part because of unwarranted property speculations. With the recent resurgence of interest in real estate, these abandoned buildings were refurbished and resold to meet the growing demand for more condominiums, especially in the metropolis.

Many of the developers attribute the property boom to Thaksin Shinawatra when he opened up the market to foreigners. Like the Philippines, laws in Thailand prevent foreigners from owning personal houses and lots, unless a company, which is 51 percent owned by a Thai, buys the property. And also like the Philippines, foreigners are allowed to own condominium properties.

A coup d’etat against Thaksin disrupted the boom after investors fled because of the uncertain situation in the country.

However, the present government has stabilized and slowly sent positive signals to investors fuelling the recent comeback of the real estate industry.

Condominiums are again very popular in Thailand, especially in Bangkok because there are practically no more lands or houses to be bought in the capital. The most sellable of these are those that are located near the MRT stations.

Actually, prices of these condo units are only about ThB1.2 million and are usually 34 to 40 square meters and above. There are even units which are ThB800,000 only. These are usually farther away from the MRT stations and are 10-year-old refurbished buildings.

Many international investment groups name Thailand as one of the best real estate investment destinations in Asia probably at par with China and India. A small city like Cebu can learn a lot from their experience.

More about properties in Thailand will be discussed next week and what Cebu can get from their experience.

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(Tuts Paradela is a licensed real estate broker, who helps a non-government organization in livelihood development. His website is www.ceburealestates.com.)