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Thailand experienced a rebound in growth during 2010 with real GDP growth of approximately 7.5%, significant when compared to the negative growth experienced during 2009. The improvement could be due to pick-up in external demand, continued robust government spending and improving domestic consumer spending. However the Thai economy still faces potential problems related to the global financial crisis and political uncertainty. Both these factors have affected the tourism industry. Following is information on the Thailand commercial property market and the comprehensive services provided by Healy Consultants:

Political uncertainty in Thailand, along with decline in the Thailand economic outlook lead to a decline in the Thailand commercial property market. Political stability reassures the confidence of foreign investors, hence making the property market more attractive.

While restrictions apply to foreign ownership of real estate, foreigners are able to invest in Thailand commercial property and residential property.

With the average rent for prime office space in the central business district of Bangkok remaining just slightly more than Bt740 (US$22) per square metre per month (psm), office rentals in Bangkok are among the lowest in the region, says CB Richard Ellis Thailand.

By the third quarter of 2010, vacancy rates increased to 11.14% and 12.54% for Grade B and Grade C offices, respectively. Vacancy rates of Grade A offices dropped slightly to 13.58% from 2009. Less buildings have recently entered the market due to businesses being unwilling to commit to new expansion plans during periods of economic and political turbulence.

Healy Consultants assists international entrepreneurs and investors maintain peace of mind over their investment by providing efficient property management services relevant to the Thailand commercial property market. Such services include:

Organising property insurance for the commercial premises to secure structure and contents of the client's new asset.

Appointing and supervising a reliable agent to manage the process of finding tenants.

Implementing the required security measures to protect the premises, employees, company hardware and IT requirements.

Project managing any property maintenance requirements.

6.

The most recent DTZ's 2010 Global Occupancy Cost Report emphasizes that Thailand is one of the best places to establish a company in regards to occupancy cost. Being the second cheapest place in the Asia Pacific Region with a total occupancy cost of US$23.20 per sq ft per annum; Thailand offers a great way to establish an office in Asia, while saving money in the same time.

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According to the Knight Frank Q3 2010 Bangkok Office Market Report, office rents declined slightly year on year in the Grade A and Grade B sectors. This could be encouraging for investors and may indicate an improving rental market. However in the immediate term, lower levels of new demand stemming from relocation and expansion plans prevail while markets recover from downturn.

For further information on Thailand commercial property market, please contact us at our Singapore office at (+65) 67350120 or email us at email@healyconsultants.com