The Bank of Thailand admitted it had intervened in the currency market late last week, after a sudden weakening of the Baht, caused by foreign investors shifting their money out of Asia, worried that Citigroup would be downgraded when the full effect of the US sub-prime mortgage crisis took hold.
One potential upside of the situation at the moment is to make Thailand’s property market a far more attractive investment opportunity. The baht reached 34 baht to a US dollar this week. Combined with political uncertainties over the upcoming election causing softening prices the Thai property market seems to be shifting into overdrive.
Clayton Wade, managing director of Premier International, a Thailand-based residential and commercial property consulting group, made some interesting comments in a recent interview with The Bangkok Post. “With the recent downturn in economic indicators and consumer confidence, many local investors have switched money from the stock market to a more secure sector – the Thai property market.”
The figures certainly seem to back this up in the mid-range market with the recent completions and brisk sales of well-located developments in Bangkok and Pattaya suggesting a higher level of confidence by local investors rather than foreign money. According to Thai Property News, these new developments have sold extremely well on release:
Supalai launched its new riverside project, Supalai River Place, in June. The day after its launch, 85% of its 800 units were sold out, with prices in the one- to five-million-baht range.
Supalai River Palace
Condo One launched a series of eight projects in various locations of the inner city. Most of those were sold out a few days after launch, and prices in the few units that remain available have continued to escalate.
Noble successfully sold 500 units at Noble Remix on Sukhumvit 36 within a few weeks, with prices in the three- to five-million-baht range. Noble is confident that successful investors in their Remix project will repeat their experience with the upcoming Noble Solo on Thong Lo.
All in all, in our opinion, the Thai property market looks like a good bet at the moment.