Though the recent strength of the baht has pushed Thai property prices up in dollar terms, there is no sign so far of any major impact on real estate transactions in Thailand, according to Jones Lang LaSalle, a professional services firm specialising in real estate.
Suphin Mechuchep, managing director of Jones Lang LaSalle, said the appreciation of the Thai currency had caused concern over the possible impact on real estate, particularly in sectors that rely on demand from foreign buyers such as Bangkok high-end condominiums and resort properties in key holiday destinations.
"However, we have not seen any effect from the strong baht on Thai real estate so far," she said.
"In fact, we do not expect the baht's present strenght to have any significant impact on most property sectors across the country, unless the Thai currency strengthens at a much faster pace, which is unlikely to be the case according to economists."
JLL found that most property sectors in Thailand currently rely on domestic demand, while demand from buyers in the US and the eurozone has subsided significantly because of the financial turbulence in those regions.
"The majority of foreign demand for Thai real estate over recent years has been from Asian countries, most of which have also seen stronger local currencies against the US dollar or the euro," Ms Suphin said.
Based on year-to-date enquiries Jones Lang LaSalle has received, interest of foreign buyers in Thai properties including condominiums in Bangkok and resort condominiums and villas in key holiday destinations has remained stable. The firm has also received continued enquiries 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," Mrs Suphin said.
Pattaya is still a destination for property investment. (Photo of Southpoint Pattaya courtesy of Kingdom Property)
The latest transaction in Pattaya is the sale of the entire Suites Tower of the twin-tower Southpoint Pattaya project at around 750 million baht, developed by Kingdom Property, to a local investor who will develop the 224-unit building into internationally managed serviced residences, the company's chief executive officer Nigel Cornick said.
The purchase represents approximately 30% of the saleable area of the 672 units worth 2.5 billion baht, situated on an elevated site on Pratumnak Hill. The project will be finished in 2015.
Ms Suphin said the present environment will provide advantages for Thai corporations and ultra-high net worth individuals to acquire overseas properties where the prices are still attractive, like some gateway cities in the US and London.