thailand property presents investment opportunity
News Posted On: 26 June 2009
Thailand's economy has reached its lowest point and should start to steadily recover from now on, according to government officials.
The government's massive stimulus efforts are thought to have resulted in stemming the downturn, and while negative growth is expected to continue till the final quarter, the rate of the contraction is expected to have slowed massively in the second quarter and do the same in the third quarter, before growing 2-3% in the final quarter. This will bring the total shrinkage to about 3.5% according to the statement.
"Fiscal spending has helped buffer the impact of the downturn," said Ekniti Nitithanprapat, director of the Finance Ministry's macroeconomic policy planning section.
The government stimulus included major tax-breaks for first-time home buyers, and a 116billion Baht supplementary budget, which by paying for the provision of free education for students, will surely benefit the Thai economy for many years to come.
The reports started in April of a recovery in the lower ends of the Thailand property sector. There is no doubt that there is at least some weight behind the claims with many developers starting dozens of new low cost projects in urban centres.
There is to be a revival in the high end sector of course, when economic growth returns to the likes of 8% and the rich or getting rich entrepreneurs are seeking second homes and chic luxury city pads, according to Les Calvert, of overseas property portal Property Abroad.com who says people should see the current climate as an opportunity to get a bargain.
"We have land plots all over the chic island retreat of Koh Samui starting from well under £20k, as well as a 2 bed resale villa on Koh Samui for £35k, which will easily sell for 3-6 times that when Thai tourism is back on its feet," he said.
"And we have many more opportunities like that, including off plan apartments in the cities priced well below what they would normally fetch. These will also go for twice or even three times what they are purchased for now when the Thai economy is fully recovered," he added.
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