One of Thailand’s main property firms, TCC Land cut their investment budget for this year down to 3 billion baht, according to the Bangkok Post. This is a decrease of 40%, which owner Charoen Sirivadhanabhakdi said was a decision made as a result of the ongoing political crisis and economic uncertainty.
One of TCC’s largest-scale projects was frozen as well. The project was meant to be a second Asiatique, located across the river from the original, connected by a cable car and consisting of a hotel, convention center and retail spaces. It is yet to be determined if the project will resume its investment next year. In the meantime, TCC plans on moving the concept of developing more Asiatiques in nearby provinces that are less affected by political problems than Bangkok, including Hua Hin and Chiang Mai.
While many developers are temporarily scaling back on new projects, there still remains a general confidence in the country’s long term potential from foreign and local companies, including TCC. In fact, foreign demand for residential properties is currently on the rise in Thailand, especially from Chinese and Russians investors who are on the search for stronger value properties.
The reasons why both Chinese and Russians are currently the two most prominent investor groups are quite different from one another, as well as the property types and locations they are interested in. Russians tend to be interested in secondary apartments and condos for sale that maintain a strong value and inexpensive investment opportunities, as the Russian Ruble has recently declined due to their own political turmoil. Chinese investors are more interested in luxury properties, with a focus on Chiang Mai as the northern city is considered a gateway to China and will soon be a stop on a future international railway.
