Condo Market Grows Despite Property Slowdown

Condo market grows despite property slowdown

BANGKOK: -- Thailand's condominium market is enjoying continued growth this year despite a slowdown in the economy and the property sector overall, according to a leading industry executive.

Anupong Aswapokin, president and chief executive officer of Asian Property Development Plc, said the overall property business for single houses and townhouses this year had been negatively affected by the economic slowdown.

He said the public has reduced its spending and is taking fewer risks. Although interest rates are low, that in itself is not enough to encourage people to buy property.

Continued oil price hikes had made consumers aware to spend carefully and a campaign to reduce the consumption of energy, especially oil has also made an impact.

To reduce oil consumption, many more people are paying attention to condominiums, making condominium market expand despite the property business slowdown.

"This year, the property business is rather sluggish because the economy is expected to grow only 3.5-4 per cent. Most consumers have slowed their decision to buy property.

"Still, it is believed investment in the business sector will recover when the political situation is clear, the general election is held as scheduled, and the new government is formed," he said.

Mr. Anupong projected the demand for property by consumers would grow no less than 10 per cent this year. The number of condominiums, single houses and townhouses is expected to be less than 70,000 units.

However, he said, the private sector viewed the Thai economic strength should count more on local consumption than exports.

--TNA 2007-06-27