Investor demand for Bangkok prime sites has remained unaffected by Thailand’s political situation, according to real estate firm CBRE in its latest Thailand Investment Marketview report for Q2, published yesterday.
The report noted that despite the political unrest, investor sentiment for prime central business district (CBD) sites and prime income-producing properties has remained resilient, and has not been affected. CBRE based this assertion on various land transactions in Bangkok and provinces in Q2 2014.
In Bangkok’s CBD area, there was no significant land transaction in this quarter but this was because nothing was offered for sale rather than a change in investor sentiment, the real estate firm noted.
There have been fewer condominium launches in the midtown and suburban areas and so developers have been buying fewer condominium development sites in these areas.
CBRE said that asking prices have not dropped, as the vendors are generally private families with little or no debt on the sites and are therefore under no pressure to sell and can wait years until a buyer offers them a price which they can accept.