The 60-day emergency decree implemented two days ago received mixed responses from the business community, including incumbents in the property sector.
Thamrong Panyasakulwong, president of the Thai Condominium Association, said the decree would intensify the pressure against political protesters and might lead to violence. This will further hurt the real estate business, which has already suffered from the plunging of consumer purchasing power. Many businesses have also delayed new investment and expansion over concerns about the political uncertainty.
Countering this sentiment, Issara Boonyoung, adviser to the Housing Business Association and chief executive of Kanda Group, doubted the decree would have much impact on the property sector, as there did not seem to be much difference between this measure and the earlier imposition of the ISA. However, he acknowledged that the political turmoil has prompted property firms to tone down their business strategies.
Managing director of CBRE Thailand, Aliwassa Pathnadabutr, added that the emergency decree would impact property investors, especially foreigners who have been warned by their governments not to travel to Thailand. However, she believes that the situation is nothing new; over the past several years, the country has gone through coups, a global financial crisis, domestic political deadlocks and natural disasters.
While this latest situation requires caution, CBRE had not seen any negative long-term impact on property values through these experiences. Ms. Pathnadabutr also reinforced that Thailand’s real estate fundamentals remain good and set for growth in both the commercial and residential sectors.