Doing Business in Thailand

Colliers recently published its last property snapshot for 2009 and we would like to take this opportunity to review 2009  Thai condominium market. So, was 2009 a good or a bad year?

Thai condominium market was nearly not affected by the crisis.  According to Colliers monthly study the total amount of Condominium Units to be sold before the end of this year will reach more than 70,000 units that is to say a reduction of only 4/5% by comparison to 2008.

 Not only was the number of sales stable but in addition, prices of new units continued to climb in 2009 with an increase between 5 to 10% by comparison to last year.  This confirms my earlier analysis that Thailand and especially Bangkok condominium market would do well this year despite the 2008 crisis and if you have been waiting to buy expecting lower prices you made a mistake.

Not only did the market far better than expected by the pessimist but many good projects launched by top developers were snatched in a matter of days mostly by Thai buyers.

 The latest example of this tendency reported by Colliers are Supalai Pld who recently sold out all unit of its Supalai Park Asoke and this month sold 70% of the unit of its Supalai Park Ratchayotin in 30 days. Preuksa and Sansiri also sold out or nearly sold out several new projects during the year.

On a buyer point of view it was a very good year to buy as they were able to benefit of low interests rates, tax breaks and discounts and promotions offered by many developers (up to 10% of the unit price).

There are been less high end units project launched in 2009 and this will continue in 2010. Instead most developers are now offering projects for the middle and lower income segment as those two segments are the biggest market   

Colliers expect the current tendency to continue during the first quarter of 2010

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

© Copyrights 2009 – Rene Philippe Dubout – This article may be reprinted if information about the author, the websites, and the URLs remain intact

Originally posted 2009-12-23 07:02:15.

Related posts:

1. Buying a Condominium: Bangkok what and where to buy?
2. Buying a Condominium: The 49% foreign ownership quota issue
3. Buying a Condominium: Bangkok Price Scale Update
4. Buying a Condominium: More reasons to buy in Bangkok
5. Buying a Condominium: Buying with an offshore company
6. Buying a Condominium: Issues applicable to married buyers
7. Buying a Condominium: Foreign Freehold Ownership
8. Buying a Condominium: Purchase Formalities Step by Step