$14 billion Thai building & construction market open to Australian companies

Austrade media release

Austrade is encouraging Australian companies interested in the $14.6 billion Thai building and construction market to attend the largest South East Asian building products and services expo to be held in Bangkok next year.

Architect 2007 is the foremost regional event for suppliers of building and construction products and services looking to expand into this market. Participants will have an opportunity to identify and do business with architects, architectural specifiers, developers, distributors and agents in Thailand and the surrounding region.

According to Austrade’s Bangkok-based Trade Commissioner, Jodie McAlister, Architect 2007 is a great platform for Australian exporters to gain visibility, support their local partners and test the waters in this high growth building market.

“The Thai building and construction sector is expected to grow at a sustained rate of 7 per cent over the next five years*”, Ms McAlister said. “This unprecedented growth is creating new demand for world class capability in innovative building solutions and design, and putting new opportunities on the radar for Australian companies.”

“The Thai market is enjoying an upsurge in private investment in the residential and commercial building sectors,” Ms McAlister said. “In Bangkok alone, there are over 500 semi-completed buildings coming back online post the Asian crisis of the late 90’s – not to mention many new developments”.

“And don’t forget the booming opportunities in Phuket. Last year alone, investment in Phuket rose an unprecedented 900 per cent to $183 million from just over $19 million in 2004,” Ms McAlister said. “This is concentrated around luxury developments such as condos, hotels and marinas.”

In Bangkok and central areas, retail development is growing with average vacancy rates of less than 10 per cent. The Thai Government has also allocated $2.1 billion for housing projects over the next three years.

According to Ms McAlister, Australian companies are well placed to cater to these growing demands.

“Australian capability in the building and construction industry is already well known in Thailand,” Ms McAlister said. “A recent example is the new Bangkok international airport. Over 10 Australian companies won major contracts for various projects from design to construction and provision of raw materials for this landmark development.

“Add to this Australia’s proximity and the Thailand-Australia Free Trade Agreement (TAFTA), and our exporters have a significant competitive advantage over other global suppliers without even trying,” Ms McAlister said.  

TAFTA has seen the elimination of more than half of Thailand’s tariffs, accounting for nearly 80 per cent of Australian exports.  Australian companies, which were previously locked out of the Thai market due to high tariffs, can now enjoy new opportunities.

“However, the most successful Australian companies will be those who get in early to take advantage of the growing opportunities,” Ms McAlister said.

For more information on Architect 2007 or the Thai building sector, contact 13 28 78 or email luke.deacon@austrade.gov.au

*BMI forecast 2006 – 2010

Austrade’s Bangkok-based Trade Commissioner, Jodie McAlister is available for interviews.

ENDS

Media contact

Name: Purnima Ganapathy
Tel: +61 2 9390 2319
Mob: +61 419 127 577
Email: purnima.ganapathy@austrade.gov.au 

For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au/mediacentre.