Thailand economy looks like recovering positive effect on property market
Thailand’s Central bank has revised its forecast on the economy from a 3 – 4.5% contraction this year, to a 2.5% to 3.5%, as the economy shows clear signs that it is emerging from recession.
Not least of those signs is a 60% surge in Thailand’s benchmark stock index since March, on the back of reduced interest rates and other efforts to stimulate the economy.
Similar effects are being revealed across Asia, because Asian economies — in the main — contracted mainly because of reduced external demand, and not the collapse of their financial system causing a restriction of internal liquidity and therefore consumption. This is unlike the UK, US et al which contracted firstly because of the latter, and then even further because of the former.
Thailand’s economy has obviously contracted, and quite severely as well, not least because of a massive drops in exports and international tourism. However, many Asian economies did not contract, not least India and China, so regional tourism; Thailand’s biggest market survived relatively unscathed, especially after interest rates across Asia.
Thailand’s own interest rate cuts then allowed Thai companies to cut prices and the survival rate was a lot higher than in the west.
As for the property market, developers quickly adapted to the loss of foreign buyers and began building affordable housing to target the growing domestic demand. This led to a recovery in their fortunes very quickly.
None the less there are thousands of luxury villas and apartments for sale in Thailand, and these will be glad that international demand for luxury property abroad is once again on the rise.
Source: http://www.property-abroad.com/
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