Impact of Global Afflictions Partial till Now
Among the two storms now hitting Thailand's property market, local political turbulence has had a far bigger impact than the global financial crisis as most of the consumers are Thais who are influenced more by events within their own country, as per Apisit Limlomwongse, managing director of Nexus Property Consultants.
People here are not actually feeling the effect of the global financial crisis yet as the market is already observed as being at a low point and there is not much space left for it to go down.
In Mr Apisit's outlook, the property market is not likely to turn down much more even if political inconsistency drags on for one more year as people are becoming familiarized to it. "It has become part of life, they do this and that and we carry on with our dealing. This also means the impact of global economic instability is not that major as we are already down."
Some people purchasing real estate in fact require a home however others distinguish a benefit in investing now as they look forward to price hike when the political fight alleviates.
Temporarily, developers too appear to be more watchful with Nexus examining that there have been smaller number of fresh project launches recently. "This could be because of several factors. For example, things are always somewhat quiet during the rainy season and add in the politics and the universal financial system - clearly all symptoms are saying don't rush, don't be belligerent."
Mr Apisit noted most outsiders who purchase real estate in Thailand are familiar with the country. As outsiders also have a propensity to purchase the top-tier condominiums in Thailand, having units costing more than 120,000 baht a square meter, it is this segment that will be mostly hit by the global meltdown.
It is the section at 80,000 baht per sq m and lower that looks protected from the political and financial storms.
A recent research by Nexus reveals that 70% of the market stock is in the bracket at 80,000 baht and less. Of the leftovers, 25% is in the 80,000 to 120,000 baht segment and very little is priced more than 120,000 baht per square meter.
People here are not actually feeling the effect of the global financial crisis yet as the market is already observed as being at a low point and there is not much space left for it to go down.
In Mr Apisit's outlook, the property market is not likely to turn down much more even if political inconsistency drags on for one more year as people are becoming familiarized to it. "It has become part of life, they do this and that and we carry on with our dealing. This also means the impact of global economic instability is not that major as we are already down."
Some people purchasing real estate in fact require a home however others distinguish a benefit in investing now as they look forward to price hike when the political fight alleviates.
Temporarily, developers too appear to be more watchful with Nexus examining that there have been smaller number of fresh project launches recently. "This could be because of several factors. For example, things are always somewhat quiet during the rainy season and add in the politics and the universal financial system - clearly all symptoms are saying don't rush, don't be belligerent."
Mr Apisit noted most outsiders who purchase real estate in Thailand are familiar with the country. As outsiders also have a propensity to purchase the top-tier condominiums in Thailand, having units costing more than 120,000 baht a square meter, it is this segment that will be mostly hit by the global meltdown.
It is the section at 80,000 baht per sq m and lower that looks protected from the political and financial storms.
A recent research by Nexus reveals that 70% of the market stock is in the bracket at 80,000 baht and less. Of the leftovers, 25% is in the 80,000 to 120,000 baht segment and very little is priced more than 120,000 baht per square meter.
Labels: developers, property consultant, Thailand's property market
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