Connect with us

Real Estate

Property sector in Bangkok still booming, but bubble risk is hovering

The country’s real estate stocks have been on the boil with the index of property stocks up 28 per cent in the last three months and many listed companies have raised profit forecasts, confident of capitalizing on what they say is insatiable local demand.

Avatar

Published

on

Urbano Absolute Condo

From its business district to leafy suburbs, new condominiums are sprouting almost daily across Bangkok, but developers and investors alike seem little concerned about a property bubble developing.

Loading...

The country’s real estate stocks have been on the boil with the index of property stocks up 28 per cent in the last three months and many listed companies have raised profit forecasts, confident of capitalizing on what they say is insatiable local demand.

Other Asian governments, worried about asset bubbles and housing affordability, have tried to yank back their respective markets, with Thailand’s nearby neighbor, Singapore, the latest to unveil a slate of tightening measures. But Thailand is unlikely to follow suit, analysts said.

Urbano Absolute Condo

Coming up: The number of new condominiums in Bangkok more than tripled to 13,028 in Q1, from only 3,389 in Q2 when Thailand rebounded.

‘Interest rates are still low. There’s still huge demand, particularly with units from listed companies. Growth in the property market tends to move in tandem with GDP and the economic fundamentals are more sound now,’ said Sorapong Jakteerungkul, a property analyst at Kasikorn Securities.

He pointed out that the government’s only move has been to raise its key policy rate from a record low of 1.25 per cent by half a percentage point, a rate is still low amid rebounding consumer spending.

‘Lifestyles are changing and there’s not been many obstacles for young workers and first-time buyers with low purchasing power to get credit,’ he said.

The number of new condominium units in Bangkok more than tripled to 13,028 in the first quarter, compared with only 3,389 in the second quarter of 2009, when Thailand emerged from its first recession in 11 years, according to Bank of Thailand data.

via Property sector in Bangkok still booming.

Property

Is There a Silver lining amid COVID-19?

Thinking of the future impact of this pandemic on office buildings, it may have already dawned on many of us that a majority of potential long-term trends and health measures will become permanent work-life features in the times to come.

Daniel Lorenzzo

Published

on

A direct result of COVID-19 containment measures is that organisations are taking a real-time look at the effects of prolonged off-site work and its relation to productivity.

Loading...
(more…)

Continue Reading

Property

The time is ripe to embrace Industry 4.0

Traditional brick-and-mortar retail has suffered tremendously, as countries have been implementing effective stay-at-home and social distancing policies to mitigate virus spread, while those worst hit have enacted strict draconian lockdowns

Daniel Lorenzzo

Published

on

We have entered a time where, seemingly, interconnectedness is the new enemy, staying in is the new going out, and antisocial is the new social. COVID-19 has brought us on the cusp of growing accustomed to new norms and sounded a wake-up call in terms of how we live.

Loading...
(more…)

Continue Reading

Corporate

Covid-19 puts flexible space markets under strain

In the wake of operator defaults, landlords will be forced to re-evaluate the role of flexible space in their portfolios.

Daniel Lorenzzo

Published

on

The global Covid-19 outbreak has had serious negative effects on commercial real estate, including flexible space. Of late, many operators have experienced the flexible nature of the business working against them, as many occupiers have opted to surrender desks and implement work-from-home plans.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,957 other subscribers

Latest

Trending