Thai property developers are expected to seek more investment from foreign partners under joint venture contracts now that financial institutes have tightened loan criteria to curb non-performing loans (NPLs), consulting firm Property DNA said.
The move is not new to the Thai property market, with several major developers forming joint ventures with Japanese investors over the past decade for projects worth over 200 billion baht, Property DNA’s managing director Surachet Kongcheep said on Wednesday.
He said the current joint ventures between AP Thailand and Mitsubishi Estate, and between Ananda Development and Mitsui Fudosan, are estimated to have exceeded 100 billion baht in investment value each.
The Sena Group and Japan’s Hankyu Hanshin reportedly plan to invest over 50 billion baht in several projects. The same goes for Origin Property, who joined Nomura Real Estate in developing multiple condo projects worth over 40 billion baht, he said.
Surachet added that the real estate business requires a substantial investment and is subject to fluctuations based on economic conditions and various uncertainties. This affects confidence in purchasing homes, which typically involves applying for bank loans and creating long-term debt burdens.
