November 4, 2008
Bangkok - Property development in Bangkok tends to fall 18 percent this year because of global financial crisis and political situation, according to Agency for Real Estate Affairs (AREA).
More than 66,000 new housing units will be built this year, compared to more than 81,000 units last year.
AREA is Thailand’s leading property consultancy. It previously expected a 7% drop in the sector.
It was forecast profits from new homes selling would be 174.7 billion baht, 6% decrease.
Thailand’s economic growth is affected by political uncertainty. Its exports can be hit by less orders in major markets like the United States and Europe.
"I think now we have more effect from the economic problems outside of Thailand -- from Europe, from the US, from Japan," AREA researcher Sarayut Khanay told AFP on Monday.
The demand is still high with Bangkok residents looking for 80,000 new homes a year, according to Saravut.
However, Thais seem to have less money to buy homes while investors have capital to fund new projects.
