The floods in Bangkok made many buyers wary and this caused a number of developers to postpone the launches of their new projects until the first quarter of 2012. 14,175 housing units were launched in the first quarter of 2012 compared to 5,157 in the last quarter of 2011. Land along mass-transit lines in Bangkok is limited and this is causing developers to buy land outside the city, but close to planned mass-transit lines. 44 % of all units launched in the first quarter of 2012 are more than one kilometer from BTS or MRT lines. 65 per cent of condominium units launched at the end of the first quarter 2012 are located in suburban areas of Bangkok
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Thailand Real Estate – Bangkok developers forced to aim low
Thailand Real Estate Outlook
The completion of the Suvarnabhumi-Bangkok International Airport has spurred growth in commercial property markets in eastern Bangkok as well as in the beach resort of Pattaya. Thailand has become even more accessible by air with a wide range if International carriers using Bangkok as a hub. In recent years, there has also been a surge in budge carriers, offering very competitive prices to both local and international destinations.
Real estate developers are more cautious and many have professionalized their operations
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.
Land Ownership: In general, non-Thai businesses and citizens are not permitted to own land in Thailand unless the land is on government-approved industrial estates. Under the 1999 amendment to the Land Code Act, foreigners who invest a minimum of 40 million Baht (approximately US$1.2 million) are permitted to buy up to 1,600 square meters of land for residential use with the permission of the Ministry of Interior. If the required land is not used as a residence within two years from the date of acquisition and registration, the Ministry has the power to dispose of the land.