Thailand’s strong tourism recovery had a positive impact on housing demand and property renovation at major tourist destinations in the first quarter of 2023, according to home and construction material distributors and residential developers.
A Boost in Property Spending
The tourism revival led to an increase in spending on property renovations and improvements, especially in popular tourist destinations like Phuket and Pattaya. As a result, several businesses experienced significant growth compared to other provinces. One such company, Home Product Center Plc, which operates the home decoration and improvement store HomePro, saw its revenue increase by 9.5% to 18.3 billion baht in the first quarter of 2023.
Rental revenue also increased by 16% to 477 million baht, driven by higher rental revenue in branches located in major tourist destinations. The southern region saw a particularly high increase due to the opening of three new branches of construction material department store Mega Home.
Demand for Renovations on the Rise
Demand for renovations and improvements was not limited to existing properties. Many property owners also sought to develop new properties to cater to the growing tourism market. High-end hotels and resorts targeting foreign tourists were among the most common projects in Phuket and Pattaya.
Residential developers such as Supalai Plc also experienced increased demand from provincial markets during this period. The company’s presales of 9 billion baht in the first quarter of 2023 were mainly boosted by provinces like Phuket, Chon Buri, Songkhla, and Rayong.
Tax Incentives Stimulate Spending
Another factor contributing to the surge in property renovations was the “Shop Dee Mee Khuen” tax incentive. This payback scheme encouraged shopping and had a positive impact on HomePro’s sales, both at physical branches and through online channels.
How Property Owners Can Benefit From Renovations
If you’re a property owner looking to capitalize on the renewed tourism boom and renovate your property, we gathered some initial pointers. Not only can renovations increase rental income, but they can also attract higher-quality tenants and improve property values. Here are some tips for property owners considering renovations in Thailand:
Prioritize high-impact upgrades: Focus on renovations that will have the greatest impact on your property’s value and appeal, such as updating kitchens and bathrooms, improving landscaping, and upgrading fixtures and finishes.
Work with a reputable contractor: Choose a reliable and experienced contractor to ensure your renovations are completed to a high standard and on time.
Be mindful of regulations: Familiarize yourself with local laws and regulations pertaining to property renovations to ensure compliance.
Budget wisely: Allocate sufficient funds for your renovation project and avoid overcapitalizing on improvements that may not yield a significant return on investment.
Conclusion
The surge in property renovations in Thailand during Q1 2023 is a clear indicator of the positive impact that renewed tourism has had on the housing market. As tourism continues to thrive, property owners can take advantage of this opportunity by investing in renovations and improvements, thus boosting their revenue and potentially increasing their property value.
If you’re interested in learning more about the thriving real estate market in Phuket, be sure to check out this article on Phuket’s real estate market amid tourism growth. And don’t forget to share this blog post with others who may find it helpful or leave a comment with your thoughts!
Source: Bangkok Post
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