By Nikki De Guzman:
Despite Baht appreciation and the shift in buyer behaviour towards ultra-luxury developments, the overall property market has witnessed no decline.
According to Sorapoj Techakraisri, Chief Executive Officer at Pace Development Corporation, most of their customers “speed up their decision to buy and need to pay now when they believe the baht will remain strong.”
Although demand from the euro zone and America had declined, Thai real estate has been gaining offshore demand from Asian countries over the past years, said Jones Lang LaSalle Managing Director Suphin Mechuchep. She also added that most of those countries also have stronger local currencies against the euro or the US dollar.
“As the Baht is strengthening, a concern over the possible impact on real estate is growing, particularly in sectors that rely on demand from foreign buyers such as Bangkok high-end condominiums and resort properties in key holiday destinations. However, we have not seen any effect from the strong baht on Thai real estate so far,” said Sorapoj.
He also said that the present strength of Baht will not affect most property sectors unless the currency gains faster which economists say will unlikely happen.
“Despite the stronger currency, Thailand remains one of the cheapest real-estate markets in the Asia-Pacific region. This is one of the key factors that have kept the country’s real estate markets competitive.”
Sorapoj further noted that with the present strength of baht, ultra-high-net-worth Thai individuals and local corporations may consider acquiring properties abroad.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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