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Thailand

Buyers Guide

Thailand's once hard hit property sector has experienced a steady recovery for two straight years, particularly in the middle class residential market. Developers are confident that the market will remain steady and and not slum over the next few years.

The big improvement in 2002 was due to several factors, including low interest rates, strong domestic consumption, limited supply of new quality products and government tax measures to further stimulate the property market. Low interest rates are attractive for home buyers because with every one percentage point reduction the affordability of a a monthly instalment improves by 7% Prospective home buyers, as a result, can now afford to buy bigger houses. Given mortgage payments of 5-6%, a buyer would pay an instalment between 5,700 – 6,000 Bahta month for a house priced at one million Baht, according to a survey conducted by the Government Housing Bank.

The Bangkok Office sector has been struggling due to oversupply, but the market improved marginally during the first 9 months of 2002.

Economy
Introduction
After enjoying the world's highest growth rate from 1985 to 1995 - averaging almost 9% annually - increased pressure on Thailand's currency, the baht, in 1997 led to a crisis that uncovered financial sector weaknesses and forced the government to float the currency. Long pegged at 25 to the US dollar, the baht reached its lowest point of 56 to the US dollar in January 1998 and the economy contracted by 10.2% that same year. The collapse prompted a wider Asian financial crisis.

Thailand entered a recovery stage in 1999, expanding 4.2% and grew 4.4% in 2000, largely due to strong exports - which increased about 20% in 2000. Growth was dampened by a softening of the global economy in 2001, but picked up in the subsequent years due to strong growth in China and the various domestic stimulation programs of Prime Minister Thaksin Shinawatra, popularly known as Thaksinomics. Growth in 2003 and 2004 was over 6% annually.[1]

Substantial industries include electric appliances, components, computer parts and automobiles, while tourism contributes about 5% of the Thai economy's GDP.

GDP
$560.7 billion

GDP per capita
US$ 559.489'000.000

Annual Growth
5,2%

Inflation
0,6%

Major Industries
Tin,Textiles,Fish Products,Rice,Tapioca,Jewellery,Electrical Appliances,Furniture,Plastics,Integrated Circuits.

Major Trading Partners
EE.UU. (19,6%), Japan (14,5%), Singapur (8,1%), Hong Kong (5,4%), China (5,2%), Malasia (4,1%)

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