Real Estate Sector Revival In 2011
Thailand's real estate sector cannot be likely to get better from the current fall until 2011, as per managing director of international property agency CB Richard Ellis (Thailand).
She said the fall started in the final quarter of this 2008 with demand in Thailand's real estate sector plunging under the darkness of the global financial crisis.
The company's research reveals that transactions have dropped in all property segments in the recent quarter, a few of them notably, others to some extent. This is a symbol that the property market may go down by 10% to 20% in 2009, the steepest fall since the economic crisis in 1997, she said.
Though, she believes the real estate sector will get better in 2011, concurrently as the global economy recuperates from its current depression.
"We consider that this upturn cycle will be quicker than that after the 1997 economic crisis as global leaders like the US, UK, Europe, Japan and China has launched measures to resolve the trouble. In the meantime, Thailand's property developers and finance firms are recovered, economically, than they were in 1997," she said.
She said the downtown condominium market was the primary segment to be effected by both the global economic crisis and local political volatility.
"Command for downtown condominiums, particularly luxury condominiums, has dropped notably, from both local and foreign purchasers, in the final quarter of 2008," she said.
Local demand crashed for the reason that both home purchasers and investors are worried about their potential earnings, in addition to worrying that projects might not be finished.
"Local investors have sufficient cash to invest, however most of them think that residential project prices will go on to drop in 2009, therefore most of them are holding up their decisions to purchase," she said.
Foreign purchasers, alternatively, have perched investment and are holding on to their cash after feeling the direct effect of the global crisis.
Offices for rent and serviced apartments will also experience a pessimistic impact when a few multinational firms reduce their spending by cutting down office space and plummeting staff numbers, she said. This will decrease the occupancy rate of both offices for rent and serviced apartments in 2009.
She said the fall started in the final quarter of this 2008 with demand in Thailand's real estate sector plunging under the darkness of the global financial crisis.
The company's research reveals that transactions have dropped in all property segments in the recent quarter, a few of them notably, others to some extent. This is a symbol that the property market may go down by 10% to 20% in 2009, the steepest fall since the economic crisis in 1997, she said.
Though, she believes the real estate sector will get better in 2011, concurrently as the global economy recuperates from its current depression.
"We consider that this upturn cycle will be quicker than that after the 1997 economic crisis as global leaders like the US, UK, Europe, Japan and China has launched measures to resolve the trouble. In the meantime, Thailand's property developers and finance firms are recovered, economically, than they were in 1997," she said.
She said the downtown condominium market was the primary segment to be effected by both the global economic crisis and local political volatility.
"Command for downtown condominiums, particularly luxury condominiums, has dropped notably, from both local and foreign purchasers, in the final quarter of 2008," she said.
Local demand crashed for the reason that both home purchasers and investors are worried about their potential earnings, in addition to worrying that projects might not be finished.
"Local investors have sufficient cash to invest, however most of them think that residential project prices will go on to drop in 2009, therefore most of them are holding up their decisions to purchase," she said.
Foreign purchasers, alternatively, have perched investment and are holding on to their cash after feeling the direct effect of the global crisis.
Offices for rent and serviced apartments will also experience a pessimistic impact when a few multinational firms reduce their spending by cutting down office space and plummeting staff numbers, she said. This will decrease the occupancy rate of both offices for rent and serviced apartments in 2009.
Labels: luxury condominiums, property market, Thailand's real estate sector
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