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Political uncertainty hampers investments

Friday, 03 October 2008

source: The Nation September 29, 2008 Foreign as well as local buyers are shying away from investing Thailand's property market is expected to face hard times during the last quarter of the year as homebuyers delay their decision to buy after rising concerns over the country's political state, a survey conducted by The Nation early this week revealed. Nexus Property Consultants managing director Apisit Limlomwongse said the company's sales from the last month until the midฌdle of this month had dropped 5 to 10 per cent compared to the same period last year. "The US financial crisis did not have a direct impact on the Thai property market, compared with the country's own political uncertainty, which has had a direct impact on local and overseas people who had planned to buy property in Thailand," he said. He said residential projects in resort destinations such as Phuket, Hua Hin, Koh Samui and Pattaya were suffering due to the political turmoil and most homebuyers, domestic and foreign, had delayed their decision to expand their investments after the People Alliance for Democracy (PAD) seized Government House last month. "Most of our buyers suspended their investment plans when they saw this and are concerned about when Thailand's political unrest will end," he said. Harrison's vice president Kitisak Jampathippong said a customer from Malaysia had suspended its investฌment of Bt5 billion in the hotel business in Bangkok last month because of the political unrest. Apisit said the drop in demand might affect residentialproject prices in locations far from the mass transit systems. Some residential projects in Bangkok that are near the mass transit system are likely to stay stable, he said.

 

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