The world wonders and waits what a Donald Trump presidency will mean for their country, but analysts are predicting that not much will change in the short term. In Thailand, there will be little to no impact on Thailand’s real estate investors and market in the aftermath of the US election.
Andrew Gulbrandson, Head of Research and Consulting at JLL in Thailand explained that unlike Hong Kong’s dollar, the Thai baht is not directly pegged to US currency and has remained fairly stable over the last several months. This means real estate prices in the country will be more attractive to international investors than it was pre-US election.
And there could even be a silver lining if there is a sustained devaluation in the US dollar. The United States may become a more attractive investment destination for Thai real estate investors as it would become more affordable, Gulbrandson explained. He added that it is too early for investors to rush into the market.
“Having said that, demand for real estate in all markets is highly dependent upon macro-economic conditions,” Gulbrandson said. “As such, it will be important to keep a close eye on how policies and programs enacted by the new US administration impact global markets, particularly in the case of China, which is one of Thailand’s major trading partners and a growing source of real estate investment into Thailand.”
In terms of impact in the Asia Pacific region, Trump’s election victory may reinforce the trend of cross border capital rising within Asia Pacific. Megan Walters, Head of Research for Asia Pacific at JLL, pointed out that China and Singapore funds have already moved into Australia and Japan and added that given the diversification benefits of growth, there could be increasing movements of global funds into Asia Pacific.
Political shifts in other regions are unlikely to impact growth in the Asia Pacific region, which is based more upon domestic demand, demographics and urbanisation.
