Most analysts feel it takes more than bombs to slow down the continued and long-term appeal of Thai properties for foreigners
On 17 August 2015, a bombing took place inside the Erawan Shrine at the Ratchaprasong intersection in Bangkok. Over 20 individuals died and countless more were injured. Some predicted the demise of Thai tourism and a dip in the real estate market. To date, tourism numbers are holding steady and real estate prices remain stable.
I believe the reason for this is the entry of ‘new money’ from foreigners who see value in Thailand real estate. In fact, compared to almost all major currencies, the Thai Baht has fallen as much as 12% since 19 July 2015 or a period of about 1 month. See Table 1.
In these times of uncertainty, buyers who were looking into the Thai real estate market already saw value before the market started its see-saw effect starting after mid-July. Now with effective exchange rates between 5% to 12% cheaper for foreign buyers and with the possibility of the Thai Baht becoming weaker, many buyers are waiting for the impending bottom before they enter.
At our Bangkok 101 Agency offices , buyers from the USA and Europe who have been waiting to buy either Summer/Vacation Homes or Retirement Homes predict that rates will be at their lowest sometime in the 4th Quarter of 2015. I predict that there will be a spike in sales of condominiums to foreigners towards the latter part of the year.