Property consultancy and agency Knight Frank Chartered (Thailand) Co., Ltd. recently released a press release that addresses the prospects of the Thai property market. Frank Khan, executive director and head of residential for the firm’s Thai unit, remains positive, commenting that the political issue in Thailand is not a major concern for the property business.
He says that things were difficult in the first four or five months and the real estate market was soft, but the situation is gradually improving. Also, Mr. Khan feels that, despite the political turmoil, the private sector is still strong, and its performance helps the overall economy. Also, to look on the bright side, the political unrest has been beneficial in that the condominium market has cooled down, reducing the likelihood of oversupply.
Also, foreign investor confidence is still intact. In the past three months, Knight Frank introduced Thai residential projects at private exhibitions in Kuala Lumpur, and the company experienced good responses.
Looking ahead, the emergence of the ASEAN Economic Community will drive demand for business expansion and accommodation in Thailand, thanks to the nation’s infrastructural readiness and strategic location. Mr. Khan expects that foreign investments by multinational companies will grow, exceeding the 90-percent-plus occupancy rate of Bangkok office space. Demand for urban residential property will also increase as a consequence of such business growth.
