Overseas Investors Less Attracted To Thai Real Estate Sector
As per a well known real estate service agency, overseas property investors are not that much interested in Thai property market because of certain adverse incidents in the final quarter of last year.
The president of Jones Lang LaSalle stated that the company had earlier forecasted that the real estate sector in Bangkok would be quite challenging in 2009, with property developers enjoying strong activity. However, that prediction had not factored due to affect of global economic recession and political instability.
Even though the market fundamentals continue to be strong, the recession had damaged the entire financial ambiance together with the property market sentiment.
Jones Lang LaSalle discovered further that overseas property investors are not that much interested in Thai property market and for that they are either delaying their plans or canceling them. The interest of the investors had decreased also because of the uncertainty regarding the state measures taken a few months back like the 30% reserve obligation imposed by the Bank of Thailand in December 2008, and the modification to the Foreign Business Act which followed after that.
Experts believe that the Thai property market is expected to develop, at a slower rate in 2009. It is projected that the demand will continue to be as such since the market has strong basics.
Most of the probable purchasing activities intended to be completed in the first half of 2009 will be delayed to the last half of 2009 as probable purchasers and leasers will take on a wait and watch approach.
On the other hand, property analysts expect that the circumstances will alleviate and worries will end soon. This, in association with the constancy of the government's strategies and financial spurs through an interest rate reduction, will lend a hand in refurbishing investor buoyancy and make the real estate sector get better in 2009.
The president of Jones Lang LaSalle stated that the company had earlier forecasted that the real estate sector in Bangkok would be quite challenging in 2009, with property developers enjoying strong activity. However, that prediction had not factored due to affect of global economic recession and political instability.
Even though the market fundamentals continue to be strong, the recession had damaged the entire financial ambiance together with the property market sentiment.
Jones Lang LaSalle discovered further that overseas property investors are not that much interested in Thai property market and for that they are either delaying their plans or canceling them. The interest of the investors had decreased also because of the uncertainty regarding the state measures taken a few months back like the 30% reserve obligation imposed by the Bank of Thailand in December 2008, and the modification to the Foreign Business Act which followed after that.
Experts believe that the Thai property market is expected to develop, at a slower rate in 2009. It is projected that the demand will continue to be as such since the market has strong basics.
Most of the probable purchasing activities intended to be completed in the first half of 2009 will be delayed to the last half of 2009 as probable purchasers and leasers will take on a wait and watch approach.
On the other hand, property analysts expect that the circumstances will alleviate and worries will end soon. This, in association with the constancy of the government's strategies and financial spurs through an interest rate reduction, will lend a hand in refurbishing investor buoyancy and make the real estate sector get better in 2009.
Labels: interest rate, leasers, Thai property market
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