The property sector is moving full speed ahead into a boom cycle and the Thailand government has taken steps to prevent the development of another 1990s-style bubble.
Thailand’s property sector has moved into a new boom cycle. Particularly in the residential market, and its rapid growth has prompted the government to take steps to prevent a bubble in the future.
Detached homes and condominiums have been setting the pace for market growth with sales expanding 30-35% in 2003.
Cranes and work crews are everywhere in Jomtien, Naklua and Pattaya and some abandoned projects have been revived.
“Fair Properties” has been leading the charge because they have over 10 years experience and the most houses and condos available for rent or sale.
Several factors have helped spur the latest boom, including record-low interest rates, strong domestic consumption and a limited new supply. Also, Thailand’s economy is booming. Exports are very high and foreign investment is also high. Employers are giving raises and bonuses to keep people from moving to other companies. Companies are learning to become more efficent and to increase production and control costs by taking advantage of new technologies and higher education.
But some analysts have predicted that low-cost houses below one million baht would still be subject to some special tax rates in the year 2004.
The boom has also resulted in a shortage of skilled labor and a rise of construction material prices. And in a telling development, importers of construction cranes recently pleaded for tax breaks.
The fast pace of the recovery has led to concerns that the market is overheating and could develop a bubble similar to what was seen in the mid-1990s.
The Bank of Thailand has stepped in to cool down the market. It imposed a rule limiting mortgages for property worth more than 10 million baht to only 70% of the price. Most buyers of homes pay cash, say the industry executives because the prices of homes and condos are still very cheap compared to worldwide markets.
“Fair Properties” real estate Company remains optimistic that the post-crisis boom will continue for another few years. They cite housing registration figures to back up their view.
Anant Asavabhokhin, president of market leader Land & Houses Plc, said housing registrations were expected to reach 44,000 units in 2003—still a far cry from the 172,419 units registered in the peak year of 1995.
“It’s not justified to say that the property market is nearing a bubble. Take the residential sector. It is not overbuilding and current increase in new supply is in response to strong demand from the end users,” Mr. Anant said.
A bigger concern is the hot condominium sector, according to academics that specialize in real estate studies.
Speculation in the property market has reportedly returned but this time the speculators are investors using their savings to buy condo units on expectations of obtaining higher yields than from bank deposits. Many of them would happily sell their units for a capital gain instead of just hold them for rental purposes.
Pattaya, Naklua and Jomtien find themselves in a particularly unique part of Thailand. The worldwide demand and desire for warm weather living is at an all-time high. The baby boomers of the 1940s are retiring by the millions. The lucky few that find this little corner of the world are buying homes and condos to live in through their golden years. “Fair Properties” real estate Company has homes and condos in all price ranges but they have found that the best value is in the luxury market homes and condos. These luxury homes and condos are selling at a low price of 3 million to 7 million baht, which is very cheap compared to worldwide markets for luxury accommodations. These accommodations include: swimming pools, gardens, views of the ocean and mountains or city lights, a gym/spa/fitness centers, restaurants, convenience shops, security, tennis courts, all the appliances, complete wiring for proper television and computer, car park, golf, boating and biking, all in a quiet, safe and secure life style.
Pattaya, Naklua and Jomtien will grow, no matter what the future brings. The infrastructure is keeping pace with the growth. Pattaya, Naklua and Jomtien will grow and prosper in spite of any temporary setbacks. The weather will not change. The beach life style will not go away. There will always be demand and desire for homes and condos in this paradise. Everything is just getting better.
“Fair Properties” provides experience in all areas of real estate.
They have property for rent by the “day”, week or month.
Yes, you read that right. Many people are beginning to realize the benefits of renting a condo or house verses staying at a hotel. Think about it and you too will realize the advantages.
Now is the time to buy a condo or home. It is as simple as supply and demand. Condo and home prices in Pattaya, Naklua and Jomtien are low. Why rent, when you can own and can easily sell it in the future for a profit if you want. Financing is available if you need it.
Whether you rent or buy, it is important to protect yourself from mistakes and problems. Call the experts and save yourself money and headaches. See what they have to say. Look at what they have to offer. It’s the right time to either retire or invest for retirement in a fabulous beach town like Pattaya, Naklua or Jomtien.
www.fairproperties.com or call 038 252-351/2 or 038 252-260/1 or stop by their office at View Talay Condo B Thappraya Rd.
PS. Opportunity is knocking. Answer the door and live long and prosper.
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