While the military coup that took place in Thailand on 22 May has created some uneasiness for many sectors of the economy, the impact on the property sector has remained minimal, says Suphin Mechuchep, Managing Director of Jones Lang LaSalle, the international property services firm.
Mrs. Mechuchep explained, “Our discussions with a number of property developers, investors and corporate occupiers showed that the coup came as no surprise. Many of them had not expected negotiations between pro- and anti-government parties facilitated by the army to settle the country’s political crisis.”
Additionally, most of the existing property incumbents in Thailand have factored in business disruptions from political unrest and natural disasters. Experience showed that such issues in the past had either short-lived or limited direct impact on the real estate business.
“In fact, experience also showed that economic crises were more harmful to real estate. Capital and rental values in some property sectors in Thailand fell during the Asian Financial Crisis (1997-1998) and the Global Financial Crisis (2007-2008). But over the past seven months of pre-coup anti-government protests, capital and rental values in most property sectors have continued to grow,” added Mrs. Mechuchep.
