Although a real estate bubble is not seen as a problem in Thailand, it would take at least 11 months for condominium developers and up to three years for single houses to clear their current stocks, according to the Agency for Real Estate Affairs (AREA).

View original post here:
Bubble not expected, but caution urged for developers

The severity of the global financial crisis also saw the government introduce additional sweeteners for buyers — a 300,000-baht income tax deduction for any buyers of a new home that was transferred within 2009. At the same time, mortgage interest that could be deducted from taxable earnings was increased to 100,000 baht from 50,000 and has now become a permanent tax benefit.|

Property market in Thailand remained in a strong position thanks to good sales in the first quarter which were not only driven by the incentives. The stock market is risky to invest in, while buying gold for investment has limitations.

building Bangkok works
Real Estate Bubble not expected in Thailand, but caution urged for developers

The   recovering   economy   is   re-building consumer confidence while homebuyers’ purchasing power is also strong, he said. Development of the mass transit network in Bangkok was another boost for the market. Politics has had little impact on condominium sales but it has dampened investment and the industrial, commercial and tourism sectors.|

The mid to high-end segment boomed this year in Thailand as demand was wide and remained strong. The high-end will recover in the third or fourth quarter. But supply in this segment is very limited due to scarcity of land for new developments. Around 80% of the new launch in this segment was taken up. New supply in the high-end segment, now quoted at 150,000 to 200,000 baht a square metre, will be provided by developers with a strong financial status, experienced teams and products that match demand.

About the author

1 comment
  1. Asia is less affected by global financial crisis because of China and India. In those two countries, real estate market is still booming.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Hotel sector continues to face challenges in Asia Pacific

The quarter was also marked by the partial reopening of Thailand to international visitors with the launch of the Sandbox initiative in Phuket and Koh Samui.

Real estate in Thailand: On the way to a sustainable architecture

Like in many other countries in Europe and America, in Asia, sustainability has become a new focus also for residential property developments. This is particularly an urgent move at a time when the globe is facing risks from climate change and illnesses.

Thailand’s liveability ranking sinks amidst Covid-19 restrictions and environmental concerns

Thai cities have fallen out of the global top 100 most liveable locations for expatriate workers from East Asia, with Bangkok and Chiang Mai placed at 115th and 118th in the latest Location Ratings survey respectively