What’s your expectation for the Thai property market?
Depends where you come from, I guess.
Consider this: the price of Somkid Gardens, which during the 1997 financial shake-up was around 100,000 baht a square metre, would, if there is a unit for sale today, be at least 140,000 to 170,000 baht a square metre. ‘Only’ around a 40- 70% uplift.
Most people would probably expect the price of their property to double over a decade - in markets such as the UK, historically, it may even have quadrupled! But those balmy days in the UK, may be at an end.
In a recent interview with The Bangkok Post, however, Nigel Cornick, CEO Raimon Land, expects the prices of luxury condominiums in Bangkok to double if not quadruple over the next five to 10 years.
”[Doubling]…would be most people’s expectation in a normal market, but in this market the prices currently being achieved are not high, historically or regionally, and they can only go up.”
Of course, he would say that. The official launch of his high-end River project is expected soon, following the run-away success of the recent soft-launch - aided by local, as well as foreign, investors. And 185 Ratchadamri will follow soon. But he has a point…
There are discounts to be had, and the Asian stock markets are booming….but there are sub-prime worries…and Thai elections due - a heady mix. Fortune favours the brave they say.
Is this the ‘right time’?
What’s your forecast for the Thai property market post Election?
Posted: October 27th, 2007 under Economic News.
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