THAI MARKET TO RECOVER ACROSS ALL SEGMENTS

THAI MARKET TO RECOVER ACROSS ALL SEGMENTS
THE NATION Issued date 12 January 2010

Foreign buyers have returned to the Thai property market thanks to recent price stability and signs that prices may rise between 5 and 10 per cent this year, Patima Jirapath, managing director of property agency Colliers International (Thailand), said yesterday.

He said the property mar-|kets in the UK, Hong Kong and Singapore still faced tough |times, as they had not yet stabilised following the global recession. However, Thai property prices bottomed out last year and are showing signs of rising this year, leading foreign investors to consider expanding their investment here instead of in other parts of Asia.

According to the company's research, luxury condominiums located close to the cen-tral business district and the mass-transit system, and priced between Bt150,000 and Bt200,000 per square metre, have the potential to rise by more than 5 per cent from last year.

Demand in this market is both domestic and from other Asean countries, such as from Chinese investors living in Indonesia, Singapore and Malaysia. Most foreign buyers are in-|terested in purchasing residences in Bangkok because they are cheaper than in Singapore and Hong Kong. Meanwhile, office rental prices also show potential to rise 5 per cent this year, following a drop of 5-10 per cent last year, Patima said.

He added that rental prices for the retail market showed signs of increasing 5-10 per cent because of limited supply. Most new retail space was delayed from last year and is now due for completion this year. "In my view, the property market this year will recover in all segments," he said.

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