Foreign Investor Curiosity in Thai Property Declining
The worldwide economic recession is having influence on the Thai property market as a Singaporean investor recently taken out an investment in a project on Sukhumvit Road, said Patima Jeerapaet, managing director of the property consultant Colliers International Thailand.
He said land and condominium values in the central business district (CBD) and Sukhumvit Road's early sois will turn down because of flaccid foreign command.
As per a Colliers database, more than 60% of foreign purchasers getting hold of a condominium unit priced at 180,000 baht a square meter were from the financial division. Number of them were investment bankers or investors gaining earnings from the finance business or the stock market and changing into the property sector.
“Foreign purchasers in front of a financial crisis have to sell property as promptly as possible. A few of them may sell at asking price or with a lower than predictable margin. This will cause decreasing prices however fresh purchasers are coming up. The prices will not be to the degree that considered.”
He said sensible prices for grade-A condominium units in the CBD and Sukhumvit Road close to the BTS skytrain should be amid 90,000-120,000 baht a sq m and 65,000-80,000 baht for grade B+.
Anant Asavabhokhin, president and chief executive officer of the country's leading developer Land & Houses Plc, said land prices in the Sukhumvit area raised to 500,000 baht a square wah from 300,000 baht in just 3 years.
He confirmed that land prices in the inner city would certainly decrease as rising prices in the earlier period were determined by foreign investors, generally from Hong Kong and Singapore. Simultaneously, condominium units on Sukhumvit Road close to the BTS skytrain, prices of which were at present cited at 130,000-140,000 baht per square meter, would face slow sales, he added.
“In 2009, purchasers will wait for construction to freeze to take their money back at the same time as developers will wait for purchaser’s uncertainty in paying to take away their down payments. Although ultimately, the developer will go broke first.”
He said land and condominium values in the central business district (CBD) and Sukhumvit Road's early sois will turn down because of flaccid foreign command.
As per a Colliers database, more than 60% of foreign purchasers getting hold of a condominium unit priced at 180,000 baht a square meter were from the financial division. Number of them were investment bankers or investors gaining earnings from the finance business or the stock market and changing into the property sector.
“Foreign purchasers in front of a financial crisis have to sell property as promptly as possible. A few of them may sell at asking price or with a lower than predictable margin. This will cause decreasing prices however fresh purchasers are coming up. The prices will not be to the degree that considered.”
He said sensible prices for grade-A condominium units in the CBD and Sukhumvit Road close to the BTS skytrain should be amid 90,000-120,000 baht a sq m and 65,000-80,000 baht for grade B+.
Anant Asavabhokhin, president and chief executive officer of the country's leading developer Land & Houses Plc, said land prices in the Sukhumvit area raised to 500,000 baht a square wah from 300,000 baht in just 3 years.
He confirmed that land prices in the inner city would certainly decrease as rising prices in the earlier period were determined by foreign investors, generally from Hong Kong and Singapore. Simultaneously, condominium units on Sukhumvit Road close to the BTS skytrain, prices of which were at present cited at 130,000-140,000 baht per square meter, would face slow sales, he added.
“In 2009, purchasers will wait for construction to freeze to take their money back at the same time as developers will wait for purchaser’s uncertainty in paying to take away their down payments. Although ultimately, the developer will go broke first.”
Labels: condominium units, condominium values, property consultant, Thai property market
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