Dr Sopon Pornchockchai has vast experience in real estate research and valuation since 1982. He is an experienced valuer and lecturer on valuation at the undergraduate and graduate levels and in training courses in Thailand and abroad. He was a consultant to the ESCAP, UN-Habitat, International Labour Organisation and other international organisations.

Currently, Dr Pornchokchai is the president of Thai Appraisal Foundation which is a principal member of the FIABCI, president of Agency for Real Estate Affairs, IAAO representative to Thailand, board member of ASEAN Valuers Association, and council member of the Appraisal Foundation (USA) the International Advisory Board which is the regulatory body of appraisal profession in the USA. He was in town to conduct training for real estate developers and spoke to THT Perspectives about the situation and challenges facing the real estate sector in Nepal and South East Asia. Excerpts:

Tell us about this training programme that you conducted in Nepal?
This training programme was organised by Om Rajbhandary, CEO of The Comfort Housing and through the behest of Thai Real Estate Business School. The aim was to educate the real estate personnel in Nepal, to build up and polish their skills that will help in building this industry more professionally and more efficiently. Also we wanted to share our experiences from South East Asia as I believe that knowledge is not private property .

How do you see the future of the real estate sector in Nepal?
I think the future of the real estate business in Nepal looks really good. But it depends on the political stabili ty and political situation. For the real estate sector to develop anywhere in the world, political stability is a must. In countries that have had political problems and instability such as in Indonesia and the Philippines in the past, we saw the real estate sector suffer. However, now that things in these countries are on track, we are seeing substantial growth. Nepal needs po litical stability and I am confident that there will be growth in the future.

What needs to be done to better develop this sector?
Real estate development can and should go hand in hand along with economic development of a country and help accelerate economic growth. In this case I think we need to promote the busi ness for local people to buy and invest in assets. Nepal needs to also attract foreign investment in areas like manufacturing and factories, tourist facilities like shopping and developing these projects will lead to faster economic growth.

Do you think the property market is recovering in Asia?
In 2008 the real estate sec tor was very badly hit throughout Asia. But since last year (2009) the recovery has been steady. Countries such as Singapore, Hong Kong and China are now recovering. Countries like Thailand and Malaysia are witnessing excellent growth.

Nepal does not have a threat of bubble at present but there is the need to ensure that this does not happen. We have to approach this with planning and foresight to avoid the bubble. There really is a genuine need in Nepal for people to have decent housing.
What are the biggest challenges in Nepal to development of this sector?
First there is a need to sort out the political situation in Nepal. For a healthy and vibrant real estate sector political stability is very important and indispensible. Second Nepal needs to work on creating the right kind of policy that encourages healthy investment practices and encourages developers to build the right kind of housing and other projects for the public.

Third Nepal needs proper finance or investment channels. There is probably the need for housing banks and mortgage and security arrangements as well. Then there is room for creating better housing loan systems and better taxation. These are a few things that if sorted out will help facilitate the real estate market to better cater to housing needs of citizens of this country and create overall development of this sector at large and growth in the economy .

Does Nepal's real estate sector have the potential to attract foreign investment?
Nepal has huge tourism potential and the Himalayas will always be an attraction. Nepal's tourism potential is one area that could attract foreign investment and development of even large projects in Nepal such as resorts etcetra.
An investment from abroad is always possible and there is huge potential for investment in tourist attractions especially in mountainous areas. There must also be a conscious effort to promote and attract investment Nepalis who come back from abroad.

There is a lot to attract even foreigners to invest in tourism infrastructure products and these will also generate employment opportunities and further help economic growth in the country .

source: Pal, S. (2010),"For the real estate sector to develop anywhere in the world, political stability is a must: Dr Sopon Pornchockchai",The Himalayan Times: Perspective, 26 September 2010 ,page. 5