Property in Thailand

The condominium market in Thailand is showing signs of an early recovery as selective investors return to buying properties and real estate stocks, it is claimed.

All major developers are reporting stronger sales than expected after a dismal end to 2008 but lack of finance could end up hindering the tentative recovery, according to a report from publicly-listed Thai condominium developer, Raimon Land.

Real estate prices in Thailand are unlikely to recover for some time as shrinking demand for property has led to oversupply with many developers forced to freeze projects.     Like many other global property markets that have a high percentage of foreign property investors it is lack of finance and concern over unemployment that is creating a general lack of confidence in the markets. But in Thailand there are also concerns about political unrest.

As a result TRIS Rating, the Bangkok based credit rating agency, has described the country’s property sector as unstable and said it is likely to remain so for at least the rest of the year. The National Economic and Social Development Board (NESDB) has already forecast that the Thai economy will shrink by 2.5 to 3.5% this year.