EEC Opens Its Door : Real Estate Business Skyrockets :
Real Estate Gurus Suggest Matching Strategies to Build Networks and Investment in EEC
M.R. Chatumongkol Sonakul, former governor of the Bank of Thailand, pointed out that Thailand is still capable of controlling inflation well.
TRENDS REAL ESTATE ONLINE MAGAZINE celebrated its 2nd anniversary by organizing a seminar called "EEC LUNCH TALK BUSINESS CONNECTION" (February 25, 2023) at Cape Racha Hotel, Sriracha District, Chonburi Province, under the topic "Matching and Building a Real Estate Business Alliance Network" to sustainably enhance the potential and growth of the business. In this event, the provincial governor gave an opening speech, together with M.R. Chatumongol Sonakul as the co-chair of the opening ceremony, and the event was attended by distinguished guests such as Mr. Worajakr Sathapornpinyo, Sriracha District Chief and Mr. Phisan Nuengchamnong, of the Chonburi Provincial Treasury.
Mr. Thawatchai Srithong, Governor of Chonburi Province gave the opening remarks and noted that this event was an opportunity to link and match real estate businesses and government agencies both domestically and internationally. Landowners, executives and business developers could exchange ideas and share their experiences. Investment in potential locations in the EEC could be encouraged by bringing digital innovation to use in business, could drive further development according to the development plan Eastern Economic Development Seaboard (Eastern Seaboard) and maximize the benefits in the business sector in 2023 and in the future. The EEC is the largest special economic development zone in the eastern region of Thailand which encompasses a spacious area of 700 rai.
Dr. Viriyahphol Kanasiriwat, the founder and CEO of TRENDS REAL ESTATE online magazine reported the objectives of this event that our aim was to publicize, match, create business alliances (Partners) for investors. We also would gain insight from three gurus who have had high experience in the real estate business for a long time, namely Dr. Prateep Tangmatitham, Chief Executive Officer of Supalai Public Company Limited, Dr. Sophon Pornchokchai, an expert in securities appraisals and real estate business., and Dr. Terdkiat Sakkhamduang, Former President of the Association of Thai Community Architects Former City Planning Board and Phuket City Planner and Laem Chabang Port.
Dr. Prateep Tangmatitham, Chief Executive Officer of Supalai Public Company Limited, an expert with more than 30 years of experience and holds property worth more than THB 25,000 million, has shared his Feng Shui principles behind his success. Feng means the wind while Shui means the water. The concepts are
1. Location : It is very important as the commute must be convenient for buyers. For instance, there must be main roads or there should be enough wide sub-roads, parking space and u-turn space for residents or entrepreneurs living in the area.
2. Fengshui : There should be appropriate Fengshui such as near the sea or the mountain. If there is water source nearby, there is peaceful atmosphere. Therefore, residents can feel the difference because calmness can nourish the mind. Also, if there is a mountain nearby, the greenery makes you feel relaxed.
3. Pavement and road curb : the roadside should be wide enough for people to walk on. In addition, there should be sufficient infrastructure.
4. Terrain : the property should be on a hill or a plateau or in an area where there is no flooding.
5. Climate : Thailand is located in the tropical monsoon zone; therefore, heat is expected. However, in case of doing business in the north such as Mae Rim District, Chiang Mai Province, the cool weather can be expected.
6. Size : the good shape of the land should be round and fat like a Japanese sumo wrestler, or the bigger the better.
7. The relevant law and regulations : selling and buying should be legitimate so the land will not be expropriated in the future.
8. Popularity of the area : well known places such as Sukhumvit or areas that are adjacent to the sky train or MRT lines or going to be in the future.
9. Price of land : developers must calculate all costs and consider if the price is too expensive thus worth developing or not.
10. Potential : find a location that has the potential to be the center of various important utilities such as the EEC, which has a territory of 3 provinces, Chon Buri, Rayong, Chachoengsao. In this area, Supalai has 17 projects. Chonburi especially is a center of various sources such as a shopping centers, international schools, hospitals, airports, industrial estates with main roads and sub-roads, and convenient transportation. In Rayong province, we have projects at Pluak Daeng, Bowin, while we have two plots waiting to be developed in Chachoengsao.
In addition, there are various principles that make Supalai successful. Dr. Prateep, the big boss of Supalai added more details in the Q&A session as follows :
1. Supalai designs and constructs each project because he graduated with a bachelor's degree and master's degree in architecture therefore, he is particularly interested in design. Currently, we also have a design team to meet the standards and aesthetics of architecture well.
2. He has learned about marketing, attended training courses in marketing and MBA. Therefore, he is capable of marketing and management effectively.
3. He reads a lot of books about finance to be able to supervise financial management in the organization.
4. He has successfully learned about accounting – from finance to manage finance and budgets.
Dr. Prateep continued that ‘everything requires learning’, and to always look for new opportunities as everything changes all the time. Investment also falls into this concept. 10 years ago Supalia invested in the main economic areas such as Hat Yai, Chiang Mai, Phuket, with a focus in Hat Yai, investing in 50 rai of land to build shopping centers, international schools, and commercial buildings. However, this is the EEC era so Supalai currently has 17 projects that cost over 2 billion baht mostly in Chonburi province because it is a center of convenient living, as it includes shopping centers, hospitals, schools, airports, industrial estates. In regards international investment, Supalai heads for Australia, spending 50,000 million baht in 12 projects, calling for funding from shareholders of 10,000 million baht which is still in progress.
In addition, Dr. Sophon Pornchokchai revealed that the real estate business continues to grow after recovering from COVID 19. For example, in 2023, the growth is 10% and in 2024 it is expected to grow but it is domestic growth, not from foreign markets. In fact, the largest market is the second-hand market because there are about 400,000 units ready for sale with 200,000 units in Chonburi, Rayong and the EEC area, and the other 200,000 units are scattered in various provinces across the country, including Bangkok. It also ensures that the second-hand assets can still spur again this year, resulting from a newly-passed Thai law that offers more opportunities for foreigners. For example, a long lease of 99 years for foreigners or they can buy 1 rai of land in the amount of 10 million baht. Moreover, they can hold 100% ownership of condominium units and pay in installments. The EEC project, in particular, BOI has supported foreign investors' investment which will benefit buyers. If you are buying 5 rai of land for business, then you can buy another 10 rai for executives’ residences, and another 20 rai for workers’ dwellings, etc. Unlike the past 20 years, the Chinese have high buying potential nowadays; therefore, there should not be any worry about international markets. However, the Smart Park industrial estate should be taken into account due to the transportation routes. The improper design of roads (lots of sharp curves) and high-speed trains, connecting three airports (Don-Mueng, Suvarnabhumi,U-tapao) might cause traffic problems.
Regarding the appraisal price, if it is not corrected, the government will experience disadvantages in collecting taxes. For example, calculated by the government unit, Silom-Ploenchit area is still 7-8 hundred thousand baht to 1 million baht while the market price is 3.5 million baht per square wah. In Pattaya-Sriracha the rate is 9,500 baht per square wah while the market price is 1.6-1.9 hundred thousand baht per square wah. In Thailand, it is easy to make transactions, just an ID card needed.
In the special zone, there are many foreign investors but not many people invest outside the zone. Therefore, after the EEC investors have settled down, we have to keep an eye on areas in 20 provinces what Thailand will get return to the nation, said Dr. Sophon.
Dr. Thedkiat Sakhamduang, the former president of the Association of Community Architects, the former City Planning Commission and the city planner of Laem Chabang Port and Phuket said that few people understand urban planning, especially the development plan in the special zones of the eastern region which is focused on improving infrastructure and developing tourism, together with uplifting human and societal potential and strengthening the network of partners in the area.
M.R. Chatumongol Sonakul, the former Governor of the Bank of Thailand and former Minister of Labour, as the co-founder and advisor of Trends Real Estate Online magazine discussed Thailand's economic conditions in 2023-2024 that The Ministry of Finance and the Bank of Thailand have consistently controlled inflation well and adjusted the interest rate to not to exceed the specified minimum ceiling. In addition, the United States may print out more banknotes as it builds up debt due to the Russia-Ukraine war.
Walai Chuthammathat : Executive Editor
