Bangkok Property Market on Mend

Speaking recently at a Thailand Property Conference in Bangkok I was able to speak to Dan Tantisunthorn who heads research at Jones Lang LaSalle, and was able to update trading in the nations capital. “Despite the global recession and political issues sales prices have continued to rise with prices going up by 1.2% in H1. With reduced demand and cash flow a key consideration though discounting is evident in the market in the range of 5-15%; with some developers offering add on's like free furniture packages, cars or consumer appliances. By the end of 2009 expected completions at 46 projects representing 11,180 units will enter the market.”

“Looking forward large scale increases in supply, poor economic conditions and an increase in purchaser loans from 15-20% is hitting demand. While the Government has proactively stimulated domestic initiatives, buyer sentiment is anticipated to rise for the last half of the year. Back of a stock market rally and positive economic data a number of developers are now teeing up new project launches.”
Additionally Dan pointed out “that the continued property development was changing face as it tracked mass transit extensions and new routes (airport link, BTS, MRT). The short term tax incentives to buyers on mortgage borrowing and transfer fees are slated to expire in March 2010.”
Certainly Bangkok's broader market is set to perform considerably better back of domestic demand while resort markets such as Phuket who rely on overseas buyers will see little relief from the current slump.