DTZ Thailand, a property consultant, is poised to raise its profile and expand its business portfolio to cover high-valued condominiums and property investment apart from retail.
"We're using more Thai connections in lieu of Singaporean ones as we have done over the past 12 years," said Porameth Chantanakomes, the country head of DTZ, a UGL company, a global leader in property services.
DTZ's comprehensive range of services covers business space, consulting, hospitality management, advice on commercial and residential property acquisitions and disposals, occupier services, project and facility management, property management, residential sales and leasing agency services, retail consultancy and marketing leasing services, valuation of various types of properties and land development.
Mr Porameth said the company is now in talks with two condominium projects worth a combined 2.5 billion baht being built in Bangkok's Pathumwan district.
The projects are due to be launched in next year's first quarter.
DTZ is also in talks with a Singaporean hotel chain, a Thai private fund and a Malaysian investor looking to acquire four- and five-star hotels in Bangkok, Phuket and Pattaya.
They have set a budget of 3 billion baht for a 200-room hotel, he said.
"The Singaporean investors are interested mainly in Bangkok, Phuket and Pattaya. They don't favour Chiang Mai, which they see as too quiet and with a relatively low room rate, or Koh Samui, which has limited international connections," he said.
DTZ's report said the property market in Bangkok shows positive signs, particularly the office sector which saw rents for prime office space in the third quarter rise for the first time after stagnating for eight consecutive months.
Occupancy levels in the office sector rose to 87.5% in the third quarter from 87.1% in the second quarter as the newly completed Sathorn Square and Park Ventures buildings continued to register strong take-up.
Elsewhere, there was also healthy leasing activity among well-accessed office buildings.
These transactions yielded a net absorption rate of 6,800 square metres for the quarter.
In line with rising occupancy levels, average rents in the third quarter rose by 0.8% quarter-on-quarter to 650 baht per sq m per month.
The lack of space in the near-term was likely to shift rents in favour of landlords and tilt rental trends upwards, particularly among buildings that are well located or close to major transportation nodes.
Low Ming Tze, DTZ's associate director of consulting and research, said stable political conditions and positive sentiment among businesses will likely further drive office leasing activity in the short and medium terms.
However, the lack of new office space and limited choices within the central business district (CBD) will see renewals constituting the bulk of leasing activity.
The shortage of space in the CBD in the short-term would also divert corporate clients to look to alternative areas such as Ratchadaphisek, which will see some 300,000 sq m of new office space come on board through 2014.
About the author
- Writer: Kanana Katharangsiporn
Position: Business Reporter