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Thailand Investment Become More Cautious

By on Mar 14, 2012 in Research

Thailand Investment MarketView Q4 2011

Thailand Investment MarketView Q4 2011The impact of the floods that affected Bangkok in Q4 2011 was that developers were more cautious about buying development sites.

There were few income producing buildings on the market but we feel that investors became more cautious wanting to wait until the full extent of the floods and their impact became clearer.

We think that there were fewer major land transactions for housing developments due to the impact of flooding. Developers were concerned about low demand to purchase housing developments in areas that had been flooded.

Developers are focusing more condominium projects along the BTS and MRT lines.

The Land Department planned to introduce updated land evaluations in Q1 2012 but the scheme was postponed until mid-2012 due to the flood crisis. In the past, a revision of the government- assessed values has led to an increase in transactions as vendors want to complete sales before the new assessed values take effect, in order to reduce their tax liability.

Transactions
Major Land Transaction, Q4 2011

Supalai PLC has acquired 5-1-21 rai (approximately 2.121 acres) of land located on Petchburi Road next to Charn Issara. The site was previously occupied by the Asia Cement Public Company Limited. Supalai have launched a condominium project called “Supalai Park Ekamai-Thonglor” on this site.

L.P.N. Development Public Company Limited bought 19-1-14 rai (7.886 acres) of land located on Jomtien beach for THB 424.27 million or THB 55,000 per square wah (THB 13,750 per sq.m.).

This is an extract from Thailand Investment MarketView Q4 2011, click to download the full report.

Toby has been living in Bangkok for a number of years and has a strong research background. With his years in Thailand Toby brings a wide range of property knowledge to his research writing

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