Over the past few months, I have received so many email enquiries, from potential clients asking me if the Thailand property sector has improved. Considering that the world economy has slowed down somewhat, it is safe to say that Dubai was worst hit with a 40% drop in property prices, Singapore followed suit with a 16% drop and the UK with as much as 25% in the south and 10% in the Midlands. The high end property market has been worst hit in Phuket with sales dropping dramatically, however land and property prices have not really dropped at all, in fact in most parts of the island property prices have remained steady regardless of the market as a whole. I read in a local magazine that the US real estate prices are down nearly 20%. Mortgage applications are down in Thailand by as much as 30% and 50% in the UK alone. In order for the economy to improve and in particular the property sector in Thailand, the Thai government should introduce minor property reform to stimulate the property sector and get it moving again (even if it is slow). One suggestion might be to increase the number of Condominium units available to foreign nationals from 49% to 75% (just like they do in some parts of Bangkok and Pattaya). Another suggestion might be to increase the duration of a long term lease from 30 years to 90 years respectively. Even a 60 year lease would be an improvement of the current situation. This alone will move the sector along at a more even pace and would stimulate consumer confidence amongst potential property investors in the region. Confidence is the key, and a revise of the current condominium and lease laws would give it that extra step in encouraging foreign investment back into Thailand.
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