Thai Property Market Feels Impact of Govt Cooling Measures

The property market in Thailand is experiencing a slight slowdown as government cooling measures begin to take effect. Following robust growth last year, analysts have expressed caution about the long-term prospects of the sector....

The property market in Thailand is experiencing a slight slowdown as government cooling measures begin to take effect. Following robust growth last year, analysts have expressed caution about the long-term prospects of the sector.

Limitations on foreign ownership in Thailand are currently preventing overseas buyers from entering the market and, according to a report from CB Richard Ellis (CBRE), could do long-term damage.

CBRE noted that the market is being dominated by domestic buyers after the government decided to raise the policy interest rate three times in the second half of 2010.

"Although there have been concerns regarding the influx of foreign capital into Thailand, the various restrictions on foreign investment ensured the real estate investment market remained largely dominated by domestic players," CBRE added.

In fact, Brett Gordon, founder of Panna Capital, went as far as to warn investors that now could be the time for a correction in the once-booming market.

- Thursday 21 April 2011

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