Construction in Thailand – Key Trends and Opportunities to 2019

Date: 2015-12

“โ€ข Thailand is one of the most promising destinations for medical tourism in the Asia-Pacific. Tourists from the US, Canada, the UK and other European countries visit to access medical treatment at a lower cost than in their home country. The Thai government aims to establish the country as a medical hub in Asia in four major areas: medical treatment, health promotion, traditional Thai medicine and alternative medicine, and health products. In 2012, the health ministry implemented a policy with the aim to increase the medical tourism revenue in the country. Under the policy, the government aims to increase the revenue from by 2019.

โ€ข Despite political unrest and an increase in rental prices, the demand for office space has grown. According to the National Statistical Office (NSO), the permitted construction floor area for commercial and office buildings increased from 2.71 million m2 during the first quarter of 2014 to 2.74 million m2 for the same period in 2015. This demand provides an opportunity for investors and supports growth in investment in the commercial construction market. NSO expects a total of 450,000m2 of new office space to be added to the market between 2014 and 2016.

โ€ข Thailand is investing heavily in the development of rail infrastructure, and has launched several mass transit routes. Projects currently under construction are the Sukhumvit Line (Green Line) extension, which includes the expansion of the Green Line from Mo Chit to KhuKhot and from Bearing to Samutprakarn; and the 23km-long Purple Line mass rapid heavy rail project, which will connect Tao Bang Yai with Tao Poon in Bang Sue. The Bearing-Samutprakarn Green Line extension project is expected to be completed in 2017, while the Mo Chit-KhuKhot Green Line extension project is expected to be completed in 2018โ€“2019.

โ€ข According to Airports of Thailand (AoT), the total air passenger flow increased by 25.4%, from the first half of 2014 to the same period in 2015. To cope with the increasing demand for air travel from both domestic and international passengers, the government is focusing on developing its airport infrastructure. Accordingly, three international airports in Bangkok and Phuket are now being upgraded. AoT is also planning to expand Chiang Rai, Songkhla and Chiang Mai airports to handle the growing number of air passengers. The second phase of expansion at Suvarnabhumi airport is underway, and is expected to be completed by 2017. The expansion will increase the airportโ€™s capacity from 45.0 million passengers in 2013 to 60.0 million by 2017.

โ€ข Growth in retail industry is expected to support the construction of the retail building category over the forecast period. The retail sales are expected to increase with the increasing disposable income, tourist arrivals and rise of the middle income group. With a population of over 68.2 million, Thailand has a large consumer base, and its retail industry has the potential to expand. In May 2014, The Mall Group (TMG), a Thai mall developer, announced its plan to construct the Bangkok Mall on Bang Na-Trat Rd and the resort mall Blu Pearl in Phuket. Moreover, TMG is also planning to construct a shopping complex in Bangkok, with an anticipated investment of THB6.7 billion (US$218.0 million), and is expected to be completed in 2016.”

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