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DSR positive on Thai prospects
Property Report Thailand
July 2008
David Stanley Redfern, a leading UK based property
investment specialist, has released research suggesting
that the future is bright for real estate investment in
Thailand. The report points to 1st quarter growth up six
percent on the same period last year, and up 5.7% on the
last quarter of 2007. “After two years of political
turmoil culminating in a coup last year, it seems the new
government is finally settling in, and has made economic
growth its top priority. The main course of its efforts
are centred on generating internal and regional
investment, with global investment currently slowing”.
"Continued growth in Asia is excellent news for property
investment in Thailand, especially in the emerging markets
of Thailand´s islands of Koh Samui and Koh Phangan, where
growth is primarily fuelled by spiralling regional
tourism. Property prices in Koh Samui, an island with more
five and six star resorts than any other in Asia, grew by
50% per year, in 2006 and 2007. Continuing growth in Asia
will see tourism growth continue and capital appreciation
stay at similar figures. Koh Phangan is the new kid on the
block, and luxury resort property there is just as hot for
investment, growth figures are unclear as it is a really
new market, but with Phuket and Samui as comparisons;
growth will not be any less than 30% per year, and could
hit 50% in 2009/10."
In March Thailand’s finance ministry said government
efforts would push private investment up to 9.7% from 0.5%
last year, and that private consumption should grow to 4%
this year from 1.4% last year. The Institute of
International Finance (IIF) agreed that growth would
accelerate in Thailand this year, as growing exports to
non-U.S. countries off-set falling demand from the States.
The IIF predicted Thai GDP growth would expand to 6% from
4.8% last year. The IIF also said that rising inflation
caused by the rising cost of basic materials was the
biggest challenge facing Asian economies, but in a
refreshing statement it said that the problem would
subside shortly and that worry over the problem had been
greatly exaggerated.
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