Bangkok, Asoke- Ratchadaphisek Remains Attractive to Property Developers

Property developers in Bangkok and around Thailand are making efforts to overcome the political situation and its effect on the property market by powering through and commencing their new projects, not adjusting revenue targets. Supalai developments has allotted THB 16 billion for a new project that will build 26 residential projects, eight of which will be condominiums and 18 will be either detached housing or town houses. The company has strategically balanced the year’s portfolio and reduced risk by building the new properties in diverse areas, focusing on not just Bangkok but northern Thailand as well.

For property developers remaining focused on Bangkok, Knight Frank research shows that the Asoke- Ratchadaphisek area has become the hot new area for developers. As the area is tourism-centric with a large expat population, it has been steadily growing in both commercial properties as well as residential, with an extra focus on three-star hotels. It is estimated that over the next year or so, 324 rooms will be added to the hotel supply in the area.

Property stocks have also seen considerable growth, especially over this past week, at an average of 10%. This increase is largely in response to a decline in the central bank’s short-term interest rate. At the Bank of Thailand’s meeting on March 12^th the benchmark interest rate was decidedly cut by 25 bps to 2 percent.