Global property consultancy Jones Lang LaSalle (JLL) is confident that a property bubble will not occur in Thailand despite the supply glut of condos.
“The Thai property market is active, particularly condominiums in inner Bangkok, despite domestic political problems and sluggish Western economies,” said Suphin Mechuchep, Managing Director at JLL Thailand.
“Thai property prices are one-tenth those in Hong Kong and Singapore, while the Thai economy remains strong and people have cash on hand. Property purchases are a way to compete with inflation, especially if it’s an investment for rent,” she noted.
Popular locations in Bangkok for real estate investment include Charoen Kung, Chan Road, Narathiwat and Soi 1 to 63 along Sukhumvit Road.
The construction of a new SET building and the launch of CentralPlaza Grand Rama 9 at Rama IX Road make the place more attractive for condominium growth.
Meanwhile, the floods in the capital have affected property prices the same way the 2004 tsunami affected prices in Phuket, but real estate values in Phuket are now twice what they were before the tsunami.
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