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Investors in Thai real estate need to take a long view and forget the present challenges, as the local market is very resilient.
By Nigel Cornick
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In light of Thailand’s recent round of political and social unrest, investors in the Kingdom’s real estate sector need to take a long-term view, and acknowledge the country will continue to face challengers as it has in the past.
Although the international media tends to exaggerate the domestic situation, the real estate sector’s underlying fundamentals remain solid and point to strong long-term capital gain. There will always be challenges along the way, but the resilience of Thailand’s market remains proven.
Thailand’s cycle of political and economic upheaval is moot for regional investors from Singapore and Hong Kong, who have seen these issues come and go over the years while their investments continue to strengthen. I would say more international investors in Thailand are also becoming immune to these issues, as they tend to have their own way of simmering down over time.
Many investors in Thailand’s condominiums realized long ago that those with long-term vision will continue seeing the price per square metre (psm) of their investments rise.
Selling prices in Bangkok’s high end condominiums will continue to rise along with demand for higher specifications now being offered by developers as observed in the price records being set.
The supply/demand situation in upscale developments is still quite balanced and there is very little risk of oversupply in the future.
Stumbling global economies should have a limited impact on Thailand’s resort areas, because the buyers’ nationalities are wide enough not to depend on a single group.
IN spite of the doomsayers’ predictions, Thailand’s real estate sector remains buoyant as proven by its positive performance from the 2006 coup through to today’s social unrest, and for those with a long-term view, the return will prove strong.
Report by : Mr. Nigel Cornick, chief executive officer of Raimon Land Plc.
Bangkok Post Newspaper
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