Thai Property Looks Promising Next Two Years

[george]

Property business remains promising over next 2 years

BANGKOK: -- The Thai property business still has potential for growth over the next two years since local interest rates are relatively low, according to industry executives.

Speaking at a seminar on “Analyze Thai Property Business,” Athip Pichanond, President of the Condominium Association, said the local property business would remain promising for this year and next year although the country experienced economic slowdown due to impacts from the tsunami disaster and oil price rise.

Despite the upward interest trend, he believed, the demand in the property business was high because most consumers had bought houses for living rather than speculation.

At current, he said, local interest rates remain low. Financial institutions are allowed to extend loans in full amount and consumers are able to opt for completely built houses

However, prospective buyers might get new houses at higher prices because building material prices and inflation rates have risen.

Because of this, he suggested people, who want to have their own houses, decide to buy the houses now.

Although prices of most houses tended to edge up, he said, low interest rates remain an attractive factor that could facilitate buyers’ decision.

Dr. Somchao Tanterdtham, President of Thai Property Association, said he believed the property business remained promising given the fact that interest rates are low.

Although the country’s economy registered slower growth of 5%, he viewed, the investment in the property business would continue to increase.

However, he said, the number of property developers in various projects had decreased since the Bank of Thailand strictly supervised and controlled lending.

Dr. Somchao said although the economy was likely to slow down to a certain extent, the property business continued to be in the growth cycle.

--TNA 2005-05-06

[pautai]

strange , all the economic pundits are starting to talk 'recession' ,US, Germany , UK!

maybe the thai's will buck the trend

[stumonster]

Property business remains promising over next 2 years 

Athip Pichanond, President of the Condominium Association

No conflict of interest here.

[eljeque]

The Thai property business still has potential for growth over the next two years since local interest rates are relatively low, according to industry executives

according to "industry executives."

Of course, they want everyone to keep buying.

As world interest rates rise, either Thai rates will rise as well, or the Baht will weaken.

The statement about "homes being bought for living rather than speculation" is common when execs want to talk about solidly based growth.