Japanese developers flock to Thai property market
Japanese real estate firms are flocking to the Thai property market, joining forces with local partners to cash in on growing demand for homes.
Tokyo Tatemono Co., a major developer in the Tokyo metropolitan area, is the latest entrant into Southeast Asia’s second-largest economy, even as the condominium supply in Bangkok is beginning to swell.
The company recently signed a joint venture agreement with Raimon Land Public Co. to implement a 9.1 billion baht ($288 million) development involving two high-rise condo complexes, one in Sathorn and the other in Prompong — both in the heart of the capital.
It is the first real estate project in Thailand for Tokyo Tatemono, which is over 100 years old. Elsewhere in Southeast Asia, the company is taking part in development projects under way in Singapore and Myanmar.
About 400 units will be built in total, each with an asking price of more than 10 million baht. Construction is scheduled to start later this year and completion is planned for 2021.
Katsuhito Ozawa, executive managing officer of Tokyo Tatemono, said he believes Thailand’s stable economic growth will continue to create more residential demand.
Raimon Land, which will own a 51 percent stake in the planned joint venture, has mainly specialized in middle- and upper-grade residences in central Bangkok.
CEO Adrian Lee said the company aims to double its annual revenue to 10 billion to 12 billion baht in the next five years in partnership with Tokyo Tatemono.
Japanese developers have been flocking to Thailand since Mitsui Fudosan Co., a leading real estate firm at home, tapped the market by teaming up with Ananda Development Public Co. in 2013 for a project involving 1,875 residential units.