The best performing real estate market sectors in Q3 2010 were prime seafront properties and entry level projects, according to a recently released report by CBRE. Tourist arrivals continued to recover in the quarter, boding well for the property market on the Thai vacation isle. The total stock of completed resort standard condominium was approximately 3,000 units, up 3% Q-o-Q and 31% Y-o-Y, according to CBRE, which estimated that approximately 84 per cent in completed of condominiums have been sold.
The best performing real estate market sectors in Q3 2010 were prime seafront properties and entry level projects, according to a recently released report by CBRE.
Tourist arrivals continued to recover in the quarter, boding well for the property market on the Thai vacation isle.
The total stock of completed resort standard condominium was approximately 3,000 units, up 3% Q-o-Q and 31% Y-o-Y, according to CBRE, which estimated that approximately 84 per cent in completed of condominiums have been sold. Three condo projects were completed in the quarter and the average asking price of condominiums by developers was approximately THB 90,000 per sqm.
The total stock of completed villas in Q3 2010 was 2,787 units – no new supply entered the market.
CBRE said that total sales performance of total existing and future villa units was 77 per cent. Our of 3,749 villas, 2,897 units had been sold and 852 were still for sale. The sales rate of all existing and future luxury and high-end units was 74%. Out of 880 luxury and high-end units, 653units were sold as of Q3 2010, leaving 227 units remained unsold.
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Thailand Property Outlook
Neither India nor South Africa issued any travel warning during the recent red shirt demonstrations. They obviously felt their citizens were responsible enough to determine whether they should travel to Thailand and knew how to safeguard their personal safety _ a refreshing approach compared to certain countries that effectively declared all of Thailand including places such as Phuket and Koh Samui off-limits to their citizens.
A new and better-calibrated approach to issuing travel warnings is especially timely, given the increasing frequency of civil disturbances around the world. For example, we have seen labour protests in Greece in May and the G20 riots in Toronto in June _ despite the violent nature of these protests, no blanket travel warning was implemented on either Greece or Canada.
Although the Thai real estate industry has continued growing significantly since 2008, we have not seen a real estate bubble environment manifesting. The industry seems to have learned its lessons during the 1997 financial crisis and has successfully implemented the following safeguards: The banking industry has become much more cautious providing project financing and mortgage loans.
Being a developing country, the cost of property in Thailand is much lower than in the more developed European markets. But, on the other hand, prices for Thai property, in general, are rising at a much faster rate.
Compared to 1997 Real estate companies are able to respond much more quickly to changes
Thailand’s property market was able to rebound from past crises and there is every reason to believe it will be able to absorb the blow of recent political tensions. The taxation situation has actually improved the conditions for purchasing property in Thailand, and if property prices do dip slightly as a result of the current situation it may actually be a good time to buy as there is a very real possibility Thailand property will regain its golden outlook soon. As a result, the financial condition of most major housing developers in Thailand is much more robust than in the past. The development of the local bond markets and increasing domestic savings has the made the industry much less dependent on foreign funds, a significant difference from 1997.
The real demand for residential real estate stems from local residents and foreigners living or working in Thailand. The latter group will definitely be affected by the weak global economy but what about local Thai residents? The Thai domestic economy will also be adversely affected by the crisis, especially the export sector.
Land and Property Tax Forces Site Owners to Consider Options
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