This week Pattaya held the annual Money Expo 2014 which concluded successfully, resulting in the highest number of loans (a total of THB 17 billion) in the past four years. The most popular loans were for buying houses; about 4,500 customers applied for a home loan, which accounted for about THB 12 billion. Loans for small and medium-sized enterprises reached THB 2 billion, a reflection that businesses in the Pattaya area are largely unaffected by the current political turmoil.
While people in Thailand may be taking out more loans on houses, it has been reported that political uncertainty has had a direct negative effect on consumer spending overall. Despite this outlook, the Bank of Thailand reports that corporate confidence is higher concerning business prospects for the second quarter; many businesses have adopted a wait-and-see approach to the country’s economic situation and political uncertainty.
Also unaffected is the Chiang Mai property sector; which was recently reported to have enjoyed robust growth recently, thanks to new infrastructure such as an airport expansion and international convention centre. The city also benefits from strong economic performance, and a strategic location in the heart of the northern ASEAN region.
In Phuket, there has been an increase in demand for smaller and less expensive houses and condos in Phuket as of late, as well as resale properties. Research shows that 80% of the real estate sales that were made in last year’s third quarter were priced lower than THB1.5 million. There was not a single house that sold for above THB35 million within the period.
