Thai Real Estate Slows However Won't Collapse
If there had been buoyancy in the Thai real estate, the worldwide economic crisis has quickly turned the outlook around.
Most real estate sectors all over the world have been affected and Thailand is no exemption. Worse, the local political chaos and reports of current turbulence may have added to the uncertainties of property investors.
Certainly, prices of luxury homes in Thailand - which were well-liked with wealthy foreigners - look set to fall. Although while demand and costs are to be expected to fall, analysts and property experts based in the country says they do not look forward to the market to collapse.
What this means is that those who are in search of a retirement home may want to wait, at the same time as those who have by now bought property there may want to keep a hold of and ride out the emergency.
A current Citi report said the third quarter was the beginning of a recurring recession in the Thai residential property market, as sales slowed.
Fresh launches, for example, forced by 55% in September compared with September 2008 as the political chaos, weaker customer confidence and indecisive financial position took their charge, it said.
Though, the sharp drop in fresh condominium launches in September was not a symbol of a failing condo segment as condos continued to be the best ever selling segment in the third quarter, it said.
In addition, analysts do not make out the political chaos hitting the market harshly. Mr David Simister, chairman of property consultancy CB Richard Ellis (CBRE) Thailand, said the Thai political circumstances may be chaotic at present, but this is not new and will not outcome in the market collapsing.
In Thailand, foreigners are not permitted to possess land although they can purchase a condo unit, though only up to 49% of a development's commercial area. Based on a third quarter CBRE survey, out of 3,217 condo units in Bangkok sold to foreign purchasers since mid-2005, Singaporean purchasers accounted for 12%.
Singaporean property manager James Tan invested in a $190,000 two-bedroom unit in a low-rise residence block in Bangkok with capital approval in mind six years ago. He said he made small earnings however it was not worth the costs concerned.
Most real estate sectors all over the world have been affected and Thailand is no exemption. Worse, the local political chaos and reports of current turbulence may have added to the uncertainties of property investors.
Certainly, prices of luxury homes in Thailand - which were well-liked with wealthy foreigners - look set to fall. Although while demand and costs are to be expected to fall, analysts and property experts based in the country says they do not look forward to the market to collapse.
What this means is that those who are in search of a retirement home may want to wait, at the same time as those who have by now bought property there may want to keep a hold of and ride out the emergency.
A current Citi report said the third quarter was the beginning of a recurring recession in the Thai residential property market, as sales slowed.
Fresh launches, for example, forced by 55% in September compared with September 2008 as the political chaos, weaker customer confidence and indecisive financial position took their charge, it said.
Though, the sharp drop in fresh condominium launches in September was not a symbol of a failing condo segment as condos continued to be the best ever selling segment in the third quarter, it said.
In addition, analysts do not make out the political chaos hitting the market harshly. Mr David Simister, chairman of property consultancy CB Richard Ellis (CBRE) Thailand, said the Thai political circumstances may be chaotic at present, but this is not new and will not outcome in the market collapsing.
In Thailand, foreigners are not permitted to possess land although they can purchase a condo unit, though only up to 49% of a development's commercial area. Based on a third quarter CBRE survey, out of 3,217 condo units in Bangkok sold to foreign purchasers since mid-2005, Singaporean purchasers accounted for 12%.
Singaporean property manager James Tan invested in a $190,000 two-bedroom unit in a low-rise residence block in Bangkok with capital approval in mind six years ago. He said he made small earnings however it was not worth the costs concerned.
Labels: condominium, economic crisis, Thai real estate
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