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Published on August 3, 2007

"We are always developing the standard of our service." Such is the strong stance of Aliwassa Pathnadabutr, managing director of Thailand's oldest international property broker for international investments from the US, CB Richard Ellis (Thailand) (CBRE).

Its main tasks are developing businesses and services, planning business strategies and providing management services for major corporate clients. But it is also constantly analysing movements in Thailand's property industry, and because the industry is a window on the economy, its findings often make fascinating reading.

Aliwassa has long been a prominent personality in the Thai property industry. She joined the company as a salesperson shortly after it was established in 1988. In 1990, she became head of the department responsible for finding office areas and was promoted again to become head of all representatives two years later. That role made her responsible for finding office, retail, residential and industrial areas and providing investment consulting.

Then, from 1997-2002 she joined an executive committee that provided consultancy services on major investments, such as buying and selling land and residences.

In 2003, Aliwassa set up a team to market the company's management services. In recent years, it has served many major residential projects, particularly high-end ones.

She became CBRE's managing director in 2005, and her 18 years in the business is helping her strengthen the company's performance.

"To provide all of our services, one must understand the cultures of different corporate clients in terms of their working and thinking," she says.

CBRE recently set up a new department consisting of four officers, to serve both individual clients and those who want to invest by setting up companies.

Although it is one of Thailand's oldest property brokers, CBRE has its headquarters in the US. By the end of the year, the firm will have more than 300 branches in 50 countries, with accumulated revenues of US$4 billion (Bt135 billion).

In Thailand, CBRE has conducted as many as 1,600 property deals for its corporate clients, worth more than Bt20 billion. The Thai subsidiary has 628 officers and staff and is recognised as one of the firm's most important operations in Southeast Asia. It maintains offices in Bangkok and Phuket and is planning to open two more, in Pattaya and on Koh Samui, this year.

The company's major businesses include providing management services, particularly to high-end residential projects and office buildings, providing consultancy to individuals and corporations wishing to invest in Thailand, providing property appraisal services and analysing movements in the property industry.

In the first quarter, CBRE enjoyed about a 70-per-cent share of the rental-office-building market. Among its more recent appointments, it is rental representative for the 40,000-square-metre Athenee Tower on Wireless Road and 90,000-square-metre Jamjuri Square in the Samyan area.

Its recent successes also include four major sales with accumulated value of Bt3 billion, consisting of a 400-room hotel in Phuket, 1.44 hectares of land on Sukhumvit Road and two land plots on Rama IV Road near the Skytrain.

In the first five months of the year, it also sold more than 250 high-end condominium units and villas worth a total of Bt3.6 billion.

CBRE is currently sales representative for 21 high-end projects on Koh Samui and in Bangkok, Pattaya, Phuket, Krabi and Phang Nga. They include the Sukhothai Residence, a condominium project on Sathorn Road; the Shangri-La Phuket Resort and Spa; and the W Residence on Koh Samui.

With long experience in working with both local and international investors, Aliwassa is confident Thailand's property industry will overcome the recent economic and political uncertainties and improve, especially once the political situation is clearer. There is still high demand, as well as low interest rates, low inflation, a low jobless rate, a steady increase in people buying new homes and a large number of people living in rental residences.

She also foresees the recovery of high-end residential projects in Bangkok's central business district, where most customers are expatriates and foreigners who want to have a house in Thailand.

Based on CBRE's experience as a marketing manager for such residential projects over the past three years, international customers represent up to 42 per cent of buyers, compared with just 20 per cent before the 1997 financial crisis. They have bought 1,680 units worth a total of Bt20 billion.

"Some high-end units in the area generate profits of 25-35 per cent," says Aliwassa, pointing out that individual customers who successfully profited from selling their units proceeded to buy new units in other projects.

Aliwassa says there is no oversupply of condominiums in Bangkok and that the rate of new construction has not yet reached a crisis point. Sales have slowed slightly, but there has been no decrease in demand, the main reason being that people are now more careful in the current political situation and delaying their purchasing decisions. This helps keep prices stable.

In Aliwassa's opinion, consistently high demand for condominiums has affected detached-housing projects.

"Many 'new generation' people who used to want single houses are more interested in condominiums in the central business district," she says, adding that condominium living helped ensure the cleanliness and safety of their homes.

Location is the main factor influencing their decision to purchase, mainly because of familiarity and preference. Other key factors are project descriptions, developer credibility, project details and prices. Major brands have an advantage, because consumers can easily picture what they will get, while small developers struggle to make consumers understand their plans.

Nevertheless, the industry is witnessing a consistent increase in new developers, who must work hard to develop good projects and gain consumers' confidence. The industry is also offering good products using good marketing strategies. In general, the choice for consumers is broadening.

Aliwassa accepts that Thailand's property industry is a scene of fierce competition. Nevertheless, with a team of 600, a prominent market position and a determination to improve constantly, the future should give cause for much optimism.

Property Reporter

The Nation