High-end realty market buoyant

Although most home-builders have cut back on their developments, ultra high-end niche-market developers are still breaking ground all over Thailand. Ultra high-end real estate in Thailand can range from beach-front or mountain villas on Koh Samui or Phuket to large luxurious high-rise condominiums in Bangkok. These types of niche-market homes currently sell for a minimum of Bt35 million.

Baht strengthens- real estate suffers

The rapid increase in the US dollar and Thai baht exchange rate has largely been explained as weakness of the US dollar around the globe, and more recently by continued inflow of foreign capital to Thailand (particularly via the stock market). Thai baht strength has not only become a major concern for exporters, but also has implications for Thailand´s real estate sectors."If overseas investors decide to acquire real estate assets in Thailand now, they may have to pay approximately 8% more, comparing to the beginning of the year, due the baht appreciation," Mrs. Suphin said.

Bangkok’s easing property market

Bangkok’s property market in the first half of 2007, showed a considerable amount of signs in slowing down, but the short-term outlook has improved due to Thailand’s political instabilities improving. According to real estate services and investment management firm- Jones Lang LaSalle, the future of the property market in the second half of the year, depends highly on the overall prospect of the economy.

Property upturn on the horizon

''You might have noticed that people who live in condos these days are generally new families, first-time buyers, expatriates living in Thailand, those who have small families or those who don't have [children] at all. These people don't have the lifestyle to live in condos that have four to five bedrooms,'' says Mr Thongchai. ''If you study the yield per square metre, you will notice that small condos' performance per square metre is better than that of the bigger ones.''