Monday, January 10 2011 16:00
admin
Comments from Samma Kitsin Real Estate Information Centre director-general indicated that they expect an increase in the domestic property market in the first half of the year.
Mr Samma said the confidence index of business operators towards the overall economy and the real estate market for the first six months of 2011 rose to 68.7 per cent. The index previously stood at 65.6 per cent.
The confidence index of real estate firms listed in the stock market stood at 74.7 per cent, higher than other unlisted companies at 62.7 per cent.
“Most businesses don’t expect any major political events or violence like last year, but they are worried about the likely increase in the price of construction materials because the wholesale price index in this area in 2010 rose two per cent year-on-year,” he said. In the later part of 2010 sharp increases were seen in raw material prices affecting the price of construction materials.
My personal view for 2011 is that the property market will be very patchy. What I mean by that is certain destinations and locations will do very well while others will continue to suffer.
Pattaya will be by far the best, it is very active at the moment, which is always a good sign for the rest of the year. Prices are still competitive with some bargins to had if you know where to look.
Just down the road from Pattaya is Rayong, this up and coming area is attracting more and more developers targeting the aging generation, so this should do well.
As for Bangkok, this is a tough call. There is an over supply of properties at all levels at the moment, I expect it to remain this way for the rest of the year and into 2012. However, if you do your research before buying, great opportunities can still be found. Remember if you are looking for a monthly investment return, then buying near the BTS or Subway is always good, as this is a major selling point when looking for tenants. From my own experience returns of 6% can easily be if you know where to look. Contact us if you need that help.
Political stability is another key factor, if there is a repeat of last year then the recovery in the property market will be put back another year.
Exchange rates are as far as I am concerned is the biggest factor for the property market. Over the past 18 months the Euro went from around 54 baht to 40 baht that’s a big drop. If the baht can weaken 5-15% then this should bring in more buyers and provide the momentum to get the market going.
Will Shall See!
