Sales of condominiums at Bangkok’s Ritz Carlton Residences have surpassed more than THB1 billion in the last two months, largely as a result of the project changing its status from leasehold to freehold.
Sorapoj Techakraisri (pictured), Chief Executive Officer of Pace Development, said that his company’s business operations this year will focus on continuing the construction of ongoing developments, including MahaNakhon and MahaSamutr, and opening MahaNakhon’s Cube first phase.
Speaking about the real estate industry in 2014, Sorapoj said that it will face some challenges. Positive factors, he said, include forecast stable interest rates and ongoing increases in foreign investment. However, against this favourable backdrop, some negative factors include unstable global economic conditions, Thailand’s increasing household debt burden which affects purchasing power for the real estate segment, an ongoing labour shortages which affect construction.
“For the high-end real estate development market, my viewpoint is that this segment should still see a steady growth year-on-year, because demand continues to grow steadily while supply is still very limited,” he said.
“The Thai currency that is likely to become weaker helps stimulates interest and adds purchasing power among foreign customers. High-end clientele tend to be more experienced in purchasing real estate, with greater income stability and purchasing power than the general market, so investment in high-end real estate development market usually experiences less impact from economic fluctuation and external factors, compared to other segments.
“I am quite confident that Pace will reach the sales target of 70 percent by the end of the year, driven by currency appropriates and long-term fundamentals of the Thai economy as a significant contribution driving foreign purchases in the high-end residential segment.”
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
Recent stories from DDproperty.com you may have missed:
EXCLUSIVE: Thailand winners at the Asia-Pacific International Property Awards
London property expert appointed by CBRE Thailand
EXCLUSIVE: Short-term dip in overseas interest in Thailand property
MUST READ: Condo prices rose 40% in 2013
Russians are still searching for Thailand property
If you have a property story you want us to publish email: andrew@allproperty.com.sg