With the Thai property market expected to contract this year, property consultant Century 21 (Thailand) has set its sights on Laos, whose market is very active thanks largely to a new master development plan.
Chief executive Kitisak Jampathippong said his company will form a joint venture with a local firm whose owner is a large Chinese property developer investing in Laos.
It will be established in the second quarter to run Century 21's franchise business in Laos.
"From now until 2030, the property market in Laos will have huge movement and very fast growth, as it has a master plan for a new government centre, high-rise and low-rise residential projects and retail centres in Nong Ping," Mr Kitisak said.
It plans to have at least five branches in Vientiane, with one each in Luang Prabang and Savannakhet, within 2015.
"The Thai property market will contract if the political crisis stretches into the third quarter. Growth will be the lowest in the last two years," Mr Kitisak said.
Fewer than 10 new projects will be launched in the first quarter, as many projects have been postponed to the second half. Condominium sales have dropped 40% and site visits have fallen by half as potential buyers delay decisions.
"Condo projects to be completed this year may see risks, as some customers are unable to get unit transfers. This group will possibly make up 30% since banks are not confident about approving home loans," Mr Kitisak said.
For any condo projects with 20-30% of units remaining for sale, developers will hold strong campaigns and promotions to attract buyers.
Meanwhile, increases in land prices are slowing. In 2011 and 2012, land prices in prime Bangkok locations rose by 30% to 1.5 million baht per square wah. By late last year, prices had risen by less than 10% to 1.6 million baht.
Nonetheless, locations along mass transit extension lines and new lines under construction saw land prices increase by more than 10% as developers saw potential in those areas.
Many developers are turning to low-rise projects because they lack confidence in the political situation.