Property Business To Be Brighter In 2nd Half Of This Year

[george]

Property business to be brighter in 2nd half of this year

BANGKOK: -- Thailand's overall property business, particularly housing projects and condominiums near electric train routes with a price range of 1-3 million baht, in the second half of this year will outgrow that in the first half, according to the Real Estate Information Center.

Samma Keetasin, the center's acting director, said on Sunday that he was confident that the local property business, particularly housing, would grow more than that of the first half of the year because fuel prices had signaled a decline and political confusion had eased now that the general election was set on October 15.

As well, the Bank of Thailand (BOT) has hinted that it will raise its policy interest rate just slightly as a demand for housing units by people has continued to increase.

He conceded that the overall property business had been rather sluggish since the country's economic slowdown had dampened people's demand in the first and second quarters.

He said that many property developers had reduced the number and size of projects and focused on developing houses and condominiums worth around 1-3 million baht.

At the same time, consumers have turned to explore their debt repayment burdens they can bear.

Under the circumstance, he was confident it would not repeat the bubble burst in 1997.

--TNA 2006-08-28

[tominchaam]

Further decline is likely!

Having looked into four different reports about the property business all of them says we are in for further decline the rest of the year. This is felt more for expensive units while there is likely to be an increase for smaller units located close to mass communication stations. This information can easily be obtained from internet by looking into the large real estate companies which publish pretty good reports 2-4 times a year. But I agree there is no sign of a bubble similar to 1997. Today there is balance in between demand and supply, interest rates are moving upwards and the banks do not accept mortgages likely to create difficulties for their customers.

George - I do enjoy all your info here (ande you are very alert in a good way) so pls do not take my comment in a negative way. I follow the property market a lot due to various reasons but this does not mean I am correct all the time.