Pattaya Daily News

20 August 2007 :: 14:08:27 pm 21023

Property sector likely to recover in 2nd half of 2007

BANGKOK, Aug 27– Thailand‘s property sector is expected to recover in the second half of this year as the political situation is beginning to have a clear direction, according to industry executives.
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Speaking at a seminar on “Comprehensive Improvement in Property Information,” Khan Prachuabmoh, president of the Government Housing Bank, said the property business would normally pick up in the second half, particularly the fourth quarter, of every year because total sales will usually increase in the November-December period.

Especially this year, Mr. Khan said, the clearer political situation and the upcoming general election would encourage potential homebuyers to decide to purchase houses in larger numbers.

He projected the Bank of Thailand’s Monetary Policy Committee (MPC) would cut the policy interest rate by 25 basis points in its meeting Wednesday because inflation targeting is not a prime concern for the time being.

He said the sub-prime lending woes in the United States would not have a direct impact on the Thai property sector, but acknowledged that it would dampen investment in stock markets around the world.

Housing Mortgage Association president Kitti Pattanapongpibul said he believed that the inflation rate will remain at a low level now, so he sees no problem if the MPC further reduces the policy interest rate.

However, MPC might decide to maintain the interest rate to keep the pace with the US interest rate, which is still higher.

Mr. Kitti said the hefty US interest rate would help ease the sharp appreciation of the baht because some foreign capital might flow out of Thailand to the US to cash in on higher interest rates.

Should Thailand’s political confusion ease, he believed, more people would risk purchasing homes, a move which would bode well for the property sector.

Reporter : PDN staff   Photo : PDN staff   Category : Property

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