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News Release

Bangkok

Thailand Ranks 38th in Global Real Estate Transparency Index 2016

The country has seen continued improvement in transparency scores


​In the newly released biannual Global Real Estate Transparency Index 2016 by property consultancy firm JLL, Thailand ranks 38th out of 109 markets covered. Transparency across Thailand’s real estate markets has continuously improved over the last decade owing to increased access and availability of market data, improved enforcement of planning and land use regulations and the maturation of domestic investors and investment platforms such as Real Estate Investment Trusts (REITs).

JLL’s Global Real Estate Transparency Index (GRETI) measures transparency by looking at factors including data availability, governance, transaction processes, and the regulatory and legal environment.

The scores in the Index range between one and five, with one representing the highest level of transparency and five being the least transparent.  Thailand’s real estate transparency score was 2.65 in 2016, a marked improvement from 3.40 recorded ten years ago in the 2006 edition of the index.

Thailand’s Real Estate Transparency Index

​Year​2016 ​2014 ​2012 ​2010 ​2008 2006
​Composite Score​2.65​2.76​2.94​3.02​3.16​3.40
Composite score: 1 = most transparent, 5 = least transparent
Source: JLL

Mrs. Suphin Mechuchep, Managing Director of JLL, says “Continued improvement in real estate transparency is good news for Thailand as it should help increase the country’s overall competitiveness. Higher transparency levels in other markets correlate directly to investment volumes and translate to lower risk exposure to owners, investors and occupiers when making decisions around real estate investment, sales, acquisitions and leasing.”

Mr. Andrew Gulbrandson, Head of Research and Consulting at JLL Thailand, says “Greater availability of market data has proven to be a major contributor to improvement in transparency in Thailand’s real estate market. The growth of listed companies and real estate investment vehicles has also had a further positive impact on improving financial disclosures.”

Thailand Ranks 3rd in Southeast Asia

Comparing to the other six ASEAN real estate markets covered in this year’s edition, Thailand ranks 3rd, after Singapore and Malaysia.

​Transparency Category​Market​Composite Score​Global Ranking
(109 markets covered)
​Southeast Asia Ranking
(7 markets covered)
​Transparent​Singapore​1.82​11​1
​Transparent​Malaysia​2.35​28​2
​Semi​Thailand​2.65​38​3
​Semi​Indonesia​2.69​45​4
​Semi​Philippines​2.78​46​5
​Low​Vietnam​3.49​68​6
​Opaque​Myanmar​4.17​95​7
Source: JLL

According to Dr Chua Yang Liang, Head of South East Asia Research, half of the SEA countries surveyed are all within the semi-transparent group which is undergoing major structural change. The SEA countries could gain by further improving on their transactional processes and regulatory environment, as well as on the provision of information. 

“For example, Thailand which is at the top of the semi-transparent class could further enhance its regulatory and legal environment by creating a publicly accessible land title registry/database to facilitate transaction in the real estate market. In Myanmar, one of the key issue is the lack of transparency in sales transactions in Myanmar (ranked 95th globally)  and toward this end, the government could facilitate investments with a comprehensive and publicly accessible title deed registry, and establish a licensing body to regulate the real estate appraisers and brokers,” says Dr. Chua.

Asia Pacific is the Most Improved Region for Real Estate Transparency

Asia Pacific made the greatest progress globally in terms of real estate transparency over the past two years. It is also a diverse region in terms of real estate transparency. Australia continues to hold the top spot as the region’s most transparent real estate market, and together with New Zealand, is classified as ‘Highly Transparent’. 

The biggest improver in the latest survey is Taiwan, which has moved into the ‘Transparent’ category for the first time. More moderate improvements were achieved by Japan, South Korea, India and China, with China’s Alpha cities now on the cusp of the transparent category. At the other end of the spectrum, Myanmar retains the title as the least transparent market in Asia Pacific, although it was amongst the ten biggest improvers globally.

The major factor driving improvements in Asia Pacific has been the increased availability and quality of market data. In some countries improvements have also been seen in regard to performance benchmarking, the enactment of new legislation, the introduction of higher ethical standards, and the wider adoption of ‘green building’ regulations and tools.

“These results are encouraging as they highlight the steady advance of the region’s real estate industry,” says Jeremy Kelly, director, Global Research Programmes at JLL and main author of the report “Taking Real Estate Transparency to the Next Level.”

“While the region as a whole has shown improvement, most countries in Asia Pacific, however, are still not transparent. There are ongoing examples of poor corporate governance, opaque and corrupt practices and failures in regulatory enforcement that are resulting in serious consequences for society, for business activity and for investment,” says Dr Jane Murray, Head of Research, Asia Pacific.

“Looking ahead, the continued development of the region’s economies and real estate industry will fuel the need for future enhancements in transparency as investor interest rises and the demand for quality buildings and management grows. Regulatory reforms will be essential for further progress in transparency and although public sector initiatives are essential, private sector involvement will also be crucial.”

World's 15 Most Transparent Real Estate Markets

Transparency Level​Global Ranking​Market​Composite Score
​High1​​United Kingdom​1.24
​High2​​Austrailia​1.27
​High​3​Canada​1.28
​High​4​United States​1.29
​High​5​France​1.34
​High​6​New Zealand​1.45
​High​7​Netherlands1.49
​High​8​Ireland​1.60
​High​9​Germany​1.65
​High​10​Finland​1.66
​Transparent​11​Singapore​1.82
​Transparent​11​Sweden​1.82
​Transparent​13​Poland​1.85
​Transparent​14​Switzerland​1.86
​Transparent​15​Hong Kong​1.89
Source: JLL​