The new year has started with a mood of optimism for the Thai economy lifted by an upbeat global outlook.

Developers are competing fiercely for prime development sites, driving up prices to record levels and both condominium prices and office rents are at record highs.

EXPORTS AND TOURISM: MAIN CONTRIBUTION TO THAI ECONOMY

The Thai economy is picking up with growth in exports and tourism. Thailand finished last year with 3.9% Y-o-Y gross domestic product (GDP) growth, resulting from a significant increase of 9.9% in exports to all major markets.

LOCAL DEVELOPERS FORM JOINT VENTURES WITH FOREIGN PARTNERS

Thai banks are being conservative about new project lending to developers and so Thai developers are seeking funding from foreign partners. Most joint ventures to date have been with Japanese investors on a project-by-project basis for condominiums.