Thailand real estate transparency rises
Bangkok Post: 24 Jun 2010
Real estate transparency upThailand has improved six places to 39th in the 2010 Global Real Estate Transparency Index as a result of the rise in the overall transparency of the country and private companies.
The index released by the international property consultancy Jones Lang LaSalle shows Thailand scored 3.02 out of five, with one the highest level of transparency and five the most opaque. The index covers 81 markets around the world.
The country moved up from 45th place in 2008 with a score of 3.16. Thailand is still in the "semi-transparent" group with the new ranking.
The change in ranking also reflects more transparency in the capital markets related to real estate industry.
Currently there are 60 firms listed in the property sector on the Stock Exchange of Thailand, and 26 property funds. They are required to have higher governance and regulation thus providing more transparency to the real estate markets.
According to Longlom Bunnag, chairman of Jones Lang LaSalle in Thailand, rising levels of transparency help reduce investment risks, particularly for foreign investors. However, some see opportunities in less transparent markets as they can exploit from those markets to capture higher returns.
He said higher levels of market transparency and an increased availability of reliable information benefit investors as well as owners and occupiers to make more informed real estate decisions.
The survey shows slower progress on global transparency due to the financial crisis, while data availability on commercial real estate debt was generally lower than for banking regulations.
Foreign direct investment is the incentive that has driven the most improvement in transparency in the Asia-Pacific region. Australia and New Zealand are ranked first and fourth, respectively. Singapore and Hong Kong are next.
http://www.bangkokpost.com/business/economics/39253/real-estate-transparency-up
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