More developers offer education appeal
published : 10 Jul 2019 at 13:22
The number of international schools in Thailand has exceeded 200, the third highest in Southeast Asia as of 2018, driven by demand from Thai parents who seek culturally diverse environments for their children, according to a study.
Apart from local demand, there is also a growing number of international students from neighbouring countries who choose to study in Thailand due to lower tuition fees and cost of living, according to research by ISC Research.
As a result of the healthy growth in demand for bilingual education, more and more property developers integrate international schools into their mixed-use developments to offer the "Live-Work-Play" lifestyle to all family members from different countries and generations in one place.
Developers see the potential in international schools as a critical element in their mixed-use compounds in generating demand for residential properties and increasing the value of nearby developments.
In the past, we have seen successful mixed-use developments such as Sansiri's T77 Community in Sukhumvit Soi 77, comprising multiple residential projects, a community mall, and Bangkok International Preparatory & Secondary School.
Subsequently, Sansiri launched Kawa Haus, a new low-rise residential development, after the opening of Bangkok Prep School at the end of 2017, which is currently under construction and is expected to be completed by the end of 2020.
The condominium project was launched at an average asking price of 150,000 baht per square metre, making it relatively higher than nearby comparable projects outside of the T77 Community.
U City has also announced a joint venture with a Hong Kong-based private investor to develop Verso International School near Thana City Golf and Country Club with a maximum capacity of 1,800 students. The construction of the school started in 2017 on a 109.8-rai site with the project value of 3.1 billion baht and is expected to be completed by the end of 2021.
At the beginning of 2019, Country Group Development also revealed a business plan for a new mixed-use development combining residential towers and a first-tier international school on a 23-rai site at Rama III-Industrial Ring road. The international school project will be developed on a 16-rai site to accomodate up to 1,750 students. The construction is expected to be completed by 2023.
Moving forward, the international school market in Bangkok will become increasingly competitive as property developers start investing in this sector.
We may see more international schools inside the compounds and part of future mixed-use developments, most likely inside those that have vast land, as international schools not only create a sense of community but also increase the value of nearby developments from both local and international demand with high purchasing power.
Onchanok Nawapruek is an analyst at Research and Consulting, CBRE Thailand. She can be reached at email@example.com Facebook: CBREThailand LinkedIn: CBRE Thailand Line@: CBRE Thailand Twitter: @CBREThailand and website: www.cbre.co.th