The government should focus on people's general consumption and avoid intervention in the property sector, as the market will be better than expected this year, says one industry veteran.
Anant Asavabhokhin, chief executive of SET-listed Land and Houses Plc, yesterday said many Thais still had large savings, as evidenced by LH’s strong sales for high-priced single houses last year and the late-December surge in consumer spending after the government launched a tax rebate for shoppers.
“Confidence is very important," Mr Anant said. "People have money but are just unwilling to spend.
“The property market this year will continue to grow and not be as bad as expected, but the government should not intervene in the sector too much. It’s usual to have many ups and downs in the Thai property sector.”
Amid the economic slowdown, developers should be cautious, he said, adding that diversification was good but should be carried out according to a developer’s expertise and experience.
“LH used to invest in the construction business in China but failed," Mr Anant said.
"We got a lesson that we should not invest in any business where the rule of law is unclear such as in Indonesia, where we had our largest failure.”
LH will increase its international investment this year from 10% of total assets to 15% or 15 billion baht.
Investment will continue in US apartments for rent due to their good yield.
From 2013-15, LH invested a combined 10 billion baht in four apartment sites in California's Silicon Valley, generating a 50% profit from sales at one site.
Plans call for spending 3 billion baht on a new apartment site soon.
LH will also invest 8 billion baht in Terminal 21 shopping mall in Nakhon Ratchasima's Pak Chong district this year.
Other malls of the brand will open in Pattaya next year and Khon Kaen and Songkhla's Hat Yai district in 2018.
Budget hotels are another growing segment, driven by low-cost air travel.
Mr Anant is the founder of a real estate course entitled "The Next Real: Towards the Future with Real Experience", launched yesterday as a collaboration with Shinawatra University and the Home Buyers Guide.
LH shares closed yesterday on the SET at 8.70 baht, down 15 satang, in trade worth 103 million baht.