Thailand’s real estate industry remains unfazed by the coup declared by the Kingdom’s military on 22 May, according to global property services firm JLL.
Many veteran players in the Thai property sector “have appeared immune to the current political situation” and will likely weather the ongoing political hurdle, as they have done in the past.
“Our discussions with clients and business partners, including property developers, investors and corporate occupiers, showed that the coup came by no surprise,” Suphin Mechuchep, managing director at JLL and Thailand Property Awards judge, said. “They have experienced many disruptions that the country has been through in the past, whether they be previous coups, political violence and natural disasters. Experience showed that most of these disruptions had either short-lived or limited direct impact on the real estate sector.”
Mechuchep noted, however, that some new players might be scared off by the country’s political uncertainties, citing a slowdown in late 2013 when the political tension escalated.
“We have already seen property developers, owners, investors and occupiers becoming more cautious, with some of them adopting a wait-and-see approach,” she added. “[But] there remains no clear evidence of the coup changing the situation at this stage.”
National newspaper The Bangkok Post this week reported that many luxury developers are sticking to their timetables.
“Politics has had a minimal effect on buyers in the super-luxury segment. Their chief interest is the project’s construction progress,” said Sorapoj Techakraisri, CEO of Pace Development Corporation, which is building the country’s future tallest tower, the 77-storey, mixed-use MahaNakhon.
The project, which is currently at the 30th level, is due for completion at the close of 2015. The company reported sales of THB1 billion (USD30.62 million) in the first four months of 2014 for the mixed-use tower, and also attributed seven-year low interest rates to the strong demand for ultra luxury projects in the Thai capital.
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