The stronger baht has a wider impact on the Thai economy, while the stronger baht has pushed Thai property prices up in US dollar terms, there are no signs yet of any major impact on property transactions in Thailand, says real-estate services firm Jones Lang LaSalle.
Suphin Mechuchep, managing director of Jones Lang LaSalle, said that as the baht had strengthened, concern over the possible impact on the real-estate market had grown, particularly in sectors that rely on demand from foreign buyers such as high-end Bangkok condominiums and resort properties in key holiday destinations.
However, the firm does not expect the present baht strength to have any significant impact on most property sectors across the country, unless the appreciation accelerates rapidly, which is unlikely to be the case according to economists.
"Most of the property sectors in Thailand rely mainly on domestic demand at present. In addition, while demand among buyers from the Americas and the euro zone has subsided significantly because of financial turbulence in the two regions, the majority of foreign demand for Thai real estate in recent years has been from Asian countries, most of which have also seen stronger local currencies against the US dollar or the euro," Suphin said.
Interest of foreign buyers in Thai properties including condos in Bangkok and resort condominiums and villas in key holiday destinations has remained stable, she said.
She added that the firm had also received continued inquiries from overseas companies looking to acquire manufacturing and logistics facilities in Thailand.
"Despite the stronger currency, Thailand remains one of the cheapest real-estate markets in Asia-Pacific. This is one of the key factors that have kept the country's real-estate markets competitive," Suphin said.
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