The Power of Data and Integrity: Redefining Real Estate Leadership in Thailand was a recent interview by CHG: the Global Leaders Magazine to Dr.Sopon Pornchokchai, President, Agency for Real Estate Affairs (AREA) and Director, Thai Real Estate Business School (TREBS).  The following are the interviews:

 

1. Could you share your journey and motivation behind founding the Agency for Real Estate Affairs (AREA) and the Thai Real Estate Business School (TREBS)?

Thanks for your question. Actually, I love research and education. I believe that if we have good information and proper knowledge, business would be successful. I would dream to establish one of the best research houses in real estate in Thailand. Our AREA then become the first and largest independent real estate information centre since 1991.

 

2. What have been the most significant challenges and milestones in advancing Thailand’s real estate transparency and standards?

The challenge is independent source of information.  Many other real estate information centre may be owned by financial institutions for having big developers as their board members.  They would get first-hand information whereas the public did not have proper information.  For us, we are independent and all members will have information at the same time.

 

Government involvement is very crucial. I was an advisor to the Ministry of Finance in Vietnam.  After I helped write the roadmap, everything went on tract along smoothly.  They set standards and there is a controlling organization to real estate professionals.  However, in Thailand, we still need standards and better controls of the professionals for the benefits of the public.

 

3. How do you see the current property market trends in Thailand, particularly post-pandemic?

On the whole property markets are still growing. For housing, Covid-19 did not affect housing.  However, due to the slowing down of Thai economy, the new supplies were then limited.  For shopping centres, they are still growing significantly.  People like to spend their lives outside their home (perhaps different from Singapore in particular). Hotels are still growing particularly in resort destination.  Industrial properties grow but slowing.  As we know, industrialists opted to go to Vietnam and Indonesia.  Office properties might be the worst because there have been a huge supplies recently.  And people can now work from anywhere.

 

4. In your opinion, what factors will shape the future of urban development and housing in ASEAN?

Economy is the sole factor indeed.  Forty years ago, I conducted a study in Thailand for the International Labor Organization (ILO) with researchers from Korea, Japan and Singapore about the shrinkage of slums in our cities.  Due to the better economy, the number of slums decreased.  Nowadays, in Indonesia and the Philippines, there is still housing shortage.  However, in the near future, this problem can be solved.  Their economy is growing significantly.

 

5. How important is education and certification in raising the professionalism of the real estate industry?

Definitely, education is an integral part of success.  If we do not have proper education related to our real estate fields, we will not be successful.  We need to learn from our successful ancestors and seniors.  For real estate brokers in advanced countries like Singapore and United States, it is simply adequate to have education in order to earn a license and have continuing professional development (CPD) program.  Your background can be only at a high school level.   Other education programs is not a must but would be a good decoration to add you credibility and responsibility to our clients.

 

6. What are some of the most valuable lessons you’ve learned as both an academic and an entrepreneur?

What make us to survive and develop further with the trust of our clients is integrity.  We must be very much reliable to our customers.  This is related to standard practices and ethics. To really show that we have our Corporate Social Responsibility (CSR) or ESG (Environmental, Social and Governance), we have to prove ourselves with our great tract of record as well as buying adequate indemnity insurance for the benefits of our clients.

 

7. AREA is known for being ISO-9001 certified — how does quality management impact real estate consulting practices?

Our AREA current ISO-9001 is ISO 9001:2015 which is the version currently in use worldwide. It is about risk-based thinking and the High-Level Structure (HLS), which is common to other management system standards. In addition, there is an amendment to include climate action considerations as well. AREA is the first property consultant firm to earn this ISO 9001:2000 since 2002.  This is a great expression to our clients that we are reliable for them.

 

8. What advice would you give to young professionals who aspire to succeed in real estate and property investment?

Nowadays youngsters are persuaded to crypto currency to ‘get rich quick’. It looks like a fashion or even a ‘religion’.  This would be so wrong.  We should learn about them but not to centre on them.  In my opinion, we would really be successful if we have knowledge.  For me I know SPSS (Statistical Package for Social Sciences) as an analytical tools and fluent uses of computer in 1991.  This is the strong basis for me.  Today, youngsters must also learn great skills in computing and current analytical tools for their success too.

 

9. How do you envision Thailand’s role in becoming a regional real estate hub within ASEAN?

Actually, since a great deal of developments are to Singapore, it is the hub in this region.  On the other hand, ASEAN largest economy of Indonesia would make Jakarta to be another bug as well.  The developments of Manila and HCMC are very speedy, they can be other hubs.  However, in the case of Thailand with an ample number of population and are the centre for Myanmar, Laos and Cambodia (except in this immediate period of disputes in the borders), Thailand can be a great hub as well.  Our architects and engineers are really great to export their professionalism.

 

10. Finally, what is your vision for AREA and TREBS in the next 5 to 10 years?

Since we are the largest real estate information centre with integrity and independence, we still grow steadily but not speedy as an established organization.  Our Thai Real Estate Business School as an education arm of AREA will enjoy opportunities to coordinate with other education institutions to grow for the benefits of our clients.  We believe in ‘client-centred’ not to centre at our organization.