Since the rise of the nation from the "Tom Yum Kung" crises (in which I will later post more about that), Thai property market has experienced a huge augmentation in terms of sizes. Today, hundreds of high-end projects are emerging out of every corners of the town, not only in Sukhumvit or Sathorn district, but in the areas surrounding the town center as well. The main question is, can there be any limitation in its growth?
If we want to find out an answer, we must first notice that most of the customers for the higher class real estates are foreigners. Although there are some Thais who have adequate capital to purchase, it is still undeniable that the booming real estates economy is depending much on the foreign capital.
However, there is always a limitation despite the supply of higher class properties. Please notice very carefully that whenever the supply surpasses the demand, the property's prizes will eventually drop. Unfortunately, it is also very difficult to raise its demand to sustain the property's prizes if the supply has increased too much. This is what I believe the government should notice.
I am not saying that the government should restrict the construction of the newer projects. On the other hand, I do cheerfully support it. As long as the government knows how to keep the demand of the property high, by taking an initiative to develop our country's reputation as a world hub for high-end living.
Take a look at the examples from property markets in Florida and Italy, if Thailand has a national reputation as the world's leading high-end destination, imagine how much Thailand will eventually prosper.
An article by: Administrator, Thailand Economic Forum, Bangkok.
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