In Popular Demand: Professional Property Management
According to JLL, with Thailand’s real estate market evolving, professional property management services’ demand is on the up-and-up.
In addition to the increase in property development numbers, the rise in awareness of property investors and owners with respect to the need to procure professional property management services for their realty acquisitions is the main factor that drives this demand in Thailand’s capital – Bangkok.
Following a rather long learning duration, many property investors and owners have realised that developing a piece of real estate is a specialized skill, while the management of it is another. Property management in its true sense is much more than merely security work and housekeeping. There is enough of evidence to show that real estate assets lacking proper professional property management can drastically lose their competitiveness regardless of the way in which they were built.
In Bangkok’s office sector, the entire stock of existing supply is in excess of 8.5 million M2. JLL has estimated that close to 60% of Bangkok’s offices are currently being managed by the afore mentioned service providers, as compared to the estimated 30% from 2010.
In Bangkok’s condominium sector, 420,000 and above units have been completed, with most of them being managed by professional property management companies.
An evolving trend has contributed to this afore mentioned shift, according to JLL’s property and asset management director Mr. Dexter Norville.
Within the very 1st or 2nd year after a new condominium is constructed, the property manager is usually picked by the developer of the project, who may in most cases have their own in-house professional property management wing serving its own customers.
In the following years, the selection of a professional property management service provider is more often than not handled by the development’s juristic appointee. This phenomenon has led to the increase in demand for independent professional property management service providers.
While the sole driver of this growth is the rise in the desire of investors and owners to enhance and protect the value of their acquired assets. Having said that, other factors do play a role.
At first, the property owners always need to increase the efficiency of their property. While feeling the pressure of keeping operating costs to a minimum and catering to the residents and tenants’ un-ending demand for better building services.
In addition to this, as the construction and building industry evolves, new real estate developments in Thailand have been constructed and equipped with more complicated and advanced technologies as compared to say ten years ago.
These modern real estate developments usually require more high-end technical maintenance and support, and in several cases, need to transfer technologies at the best practices from real estate markets that are more developed.
Because of this reason, a greater level of professional property management services with more sophisticated engineering and technical support is needed.
Thirdly, as the real estate industry is slowly but surely going green, owners of properties must hang on to every word uttered by a seasoned international property management company that can assist them in achieving sustainable solutions via an integrated approach that safeguards the environment across the entire length of the asset’s life-cycle.
As you well know, a property is always exposed to risks and it is only a fully-qualified asset and property management firm with experienced personnel that can present property owners with all-round site-specific risk-free processes to help minimise any known or unknown risks.
Because of such reasons, JLL had projected that more property owners would outsource property management services to independent professional property management service providers. And as the Kingdom’s property market becomes more mature, JLL also anticipates an increase in demand for professional property management services to be more apparent.
Keywords/phrases – JLL, Professional Property Management Services, Real Estate, Thailand.