Pattaya Daily News

02 February 2007 :: 13:02:42 pm 23037

Pattaya Property Business Remains Resilient In Face Of National Gloom

The consensus of opinion among Pattaya’s property developers and real estate agents is that the property market, in Pattaya at least, will remain buoyant.
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This despite the recent glitches which have occurred such as the two bombing incidents, the incipient white elephant status of Suvarnabhumi Airport and foreign investors’ loss of confidence due to the military government takeover, the recent drastic fall of the Thai Stock Exchange and the mixed messages relating to the government’s policies relating to visas and foreign money.

However, Pattaya property magnates and their salesmen may well be living in cloud cuckoo land if the predictions of the Bank of Thailand is anything to go by. The Central Bank Governor, Ms. Tarisa Watanagase, is convinced that the property market will slow down in 2007, in tandem with the country’s economy, due to rising oil prices and increased prices of building materials. Ms. Tarisa did not even mention foreign investment disincentives, though she must be well aware of the adverse effects mentioned in the first paragraph.

The central bank is quietly optimistic however, that all will not be doom and gloom for the property industry. Ms. Tarisa sees the mooted potential interest rate fall as having a positive impact on property. However, the central bank is determined not to make the same mistake as happened in the Great Meltdown of 1997, when Thailand’s economy almost crashed. Business loans are being strictly monitored and controlled, although there has been a slight increase in loans to medium and small developers due to cash-liquidity problems caused by overestimating the rate of property sales.

The need for a realistic appraisal of the property market’s sales targets was also the concern of the President of the Housing Mortgage Association, Mr. Kitti Pattanapongpibul. He shares the Central Bank Governor’s opinion that strict curbs need to be applied to loans for the industry and self-control in business methods to prevent a repercussion of the events of the East Asian Financial Crisis of ‘97. He also fears a glut of expensive single houses coming onto the market, further depressing the market. However, on an optimistic note, he forecast an interest rate cut of 1% which would obviously have a positive effect on the property market in general.

Reporter : PDN staff   Photo : PDN staff   Category : Business News

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