The real estate market in Thailand is looking up, with markets in Bangkok and resort areas expected to see the biggest boom, according to recent research from real estate developer Knight Frank.
Frank Khan, Director of Residential Development for Knight Frank, was hopeful about the role of the new government in boosting the market. Referring to investors, Khan said, “they can see light in the tunnel because they expect something going on with new government. They assume that new politic will bring them good economy and the most important thing is the megaproject will come.”
Megaprojects could be the most important manner in which the government impacts the property market, and if the new Yingluck-led government is able to get several mega-projects underway the returns could be impressive. Of course, a return to the ugly street violence of last year could be devastating. Says Khan, “if anything happen within these 2-3 months … then the investors will stop themselves.”
A weakened baht is also hoped to attract foreign investment, with some experts projecting a future exchange rate between 32 and 33 baht to the dollar.
For the resort areas, the current rainy season puts a damper on sales, and also provides something of a waiting period to see what kind of policies and projects the new government will engage in.
The megaprojects are what will truly be key, and of course the issue of stability. If the government is able to survive these first couple months without major unrest, megaprojects and a weakened baht will bring foreign investment (and a boost in the property market) to Thailand in a major way.
Source: Knight Frank Website