For the rest of 2010, an uphill struggle is looming for the Thai real-estate business in the wake of the severe jolt caused by political protests and riots, effectively dampening the positive sentiments early on this year.

REAL-ESTATE OUTLOOK AFTER POLITICAL CRISIS EASES

In the first quarter of the year, real-estate indicators were distinctly healthy, with many project launches to capitalize on the recovering economy while consumers’ and entrepreneurs’ confidence remained buoyant.  In addition, entrepreneurs were benefiting from the government’s sector-specific tax reduction measures, which would have ended in March 2010.  This measure somewhat nurtured the sector during the first quarter, when the tally of new residences rose by 75.8% over the corresponding period of 2009, led by the Pruksa Real Estate Group, which launched new projects every month and accounted for one-quarter of newly launched units.  About 76.2% of the new projects launched early on this year focused on medium-income and low-income target groups, each paying up to THB 3 million.  Note that this period saw medium-sized and small projects crowding the market.  Most of these were suburban projects located near key workplaces and areas with communication network access sustaining urban expansion, including Song Prapha, Ram Indra, outer Sukhumvit, and Rangsit-Nakhon Nayok areas.  The average sales prices dropped to THB 2.2 million/unit from THB 2.9 million/unit in the last quarter of 2009.  The receding prices were accounted for by new condominium projects focusing on those with less purchasing power.

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http://www.thaibizpr.com/real-estate-outlook-after-political-crisis-eases/