Thailand’s domestic economy is, admittedly, recovering at a slow pace, and according to a report by real estate agency Plus Property the locations now in concern include areas like Pattaya and Hua Hin.
One of the main causes of such a decline is the dramatic decrease in inbound and outbound purchasing power. This has resulted in a drop in residential sales, affecting the overall market outlook.
Post-construction residential projects have been waiting to have their available units sold and legally transferred for up to two years. However there is a silver lining to this current predicament; namely, financial institutions imposing more regulations on loans to prevent developers from unnecessarily borrowing.
Excessive borrowing could create a real estate market glut which has the potential to escalate into a full-blown financial crisis – similar to that which occurred in 1997. These new regulations will assure consumers that an unsustainable housing bubble is not going to repeat itself, with a gradual trade-off taking place between demand and supply.
Despite decreased purchasing power impacted by tumbling prices in agricultural products and a flagging economy, some properties are performing well.
Pattaya’s Wongamat Beach is still enjoying good response, as is Hua Hin where many Bangkokians visit on weekends. This in itself has created traffic congestion along access roads Rama 2 and Petchkasem.
Plus Property said that it can recall a similar scenario in Miami, Florida, where real estate prices were drastically low due to the subprime-loan crisis, however tables turned after America’s economic recovery which resulted in Florida’s property prices surging to staggering levels.
Plus Property said it will see more domestic income generated owing to the government’s stimulus programme which is focused on the tourism industry.
Hua Hin is one of Thailand’s strategic provinces; it would be more beneficial to shift focus from a heavy reliance on exports to tourism in order to spread income across locales.
This, it said, requires national cooperation. The real estate sector plays an important role in a nation’s moving forward. There is a gold mine of properties that has not yet been uncovered, leaving plenty of room for potential investors.
Both developers and entrepreneurs are now hoping to sell out their properties with many promotions now on offer for the majority of available projects. If you are looking for property in Hua Hin now is an excellent time to land a good deal.
The stimulus programme itself can help to improve the domestic economy and promote property ownership, nevertheless there are some cautions that are worth heeding.
Potential buyers should only invest in completed properties. It is unnecessary to take on risk with incomplete properties, it said. With a ready-to-move-in property you can see actual communal spaces and easily assess the professionalism of property management and juristic persons.
Noting that price variations are dependent on demand and supply, now is a good time to invest with supply currently exceeding demand and making prices reasonably low.
“Let us remind you that the more regulations imposed to prevent the market from an oversupply, the lower the number of properties being introduced into the market will be. Those who are considering buying property in tourism-driven districts should seize the opportunity now while so many good promotions are available,” Plus concluded.