Experts predict a gradual recovery for Bangkok property transactions

The property market, especially the residential sector in the greater Bangkok area, will gradually recover in 2010, thanks to the effects of government stimulus packages, property experts said.

However, the luxury-hotel, serviced-apartment and office markets, as well as that for luxury residences in resort destinations, will continue to struggle, the experts said.

CB Richard Ellis (Thailand) managing director Aliwassa Pathnadabutr said demand for low-rise residences in Bangkok priced between Bt2 million and Bt3 million had continued to grow, while demand for city condominiums at prices between Bt80,000 and Bt150,000 a square meter was also strong. But city condominiums priced above Bt150,000 a square meter are still in the doldrums, because demand from foreign buyers remains low.

Demand for luxury residences at resort destinations like Phuket, Koh Samui and Hua Hin remains low for the same reason, she said.

Demand for office-building space is stagnant, with most multinational firms having suspended office expansions and cutting budgets, she said.

Colliers International Thailand believes operators of luxury hotels in Thailand will continue to face hard times, with tourist numbers down and the number of new hotels rising. Many hotels on which construction was begun in the last two or three years will be completed this year, Collier said.

Asian Property Development CEO Anuphong Asavabhokin said Bangkok’s residential market had recovered significantly since last year’s third quarter and that things looked good for 2010. The executive attributed this to the effects of the government’s stimulus packages.

The benefits of the packages is seen in the optimistic upward revision of the country’s GDP growth forecast to 4 per cent for this year, Anuphong said.

Land & Houses senior |executive vice president Naporn Soonthornchitcharoen believes the property market will gradually recover next year if the government can solve the Map Ta Phut industrial-projects problem and continues to inject money to drive the economy through mega-projects. He believes new-residence registrations in 2010 will grow 5-10 per cent.

However, if the government cannot show signs it is tackling the country’s problems in the first half of this year, the property market’s recovery will be more gradual, Anuphong said.

SOURCE: The Nation