Local demand ensures Pattaya’s condominium market remains prosperous, according to Knight Frank Thailand. The Research and Valuation department reported that previous market interest was from foreigners whereas now, and after the financial crisis, more market activity is from Thai buyers. Demand from the Thai market is particularly felt in North Pattaya and the Wongamat area, which are home to many retail outlets, fine dining restaurants, and bars. Condominiums in the South of Pattaya still attract more foreign investment. Presently, Jomtien particularly appeals to the foreign market
Thailand Property Outlook
It is critical to broadcast the message to the world that Thailand is a safe country to visit and in which to do business. Unfortunately, today 70% of all tourists considering a trip to Thailand, according to industry data, are concerned about their “personal safety”. This is in spite of Travel & Leisure recently naming Bangkok as the “World’s Best City” followed by Chiang Mai in 2nd place.
Although the current outlook for Thailand property has taken a knock and the current political situation needs to be followed closely by potential Thailand property investors, the country’s property market should not be overlooked.
Thailand is member of the ASEAN (Association of Southeast Asian Nations) trade bloc and has free trade agreements with India and China, two fast-developing economic powerhouses. Consequently, many multinational companies are using the country as a regional base for its operations or a place to station employees who travel around Asia. Foreign investment in Thailand is constantly expanding, supporting the strong economic growth of the country.
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.