This year, property sales are likely to improve, most noticeably in segments where the supply of top quality accommodations is insufficient, particularly detached houses. In an attempt to lay down a solid basis for a sustainable recovery in three to five years, the foundations of the industry ranging from legal protection for homebuyers to debt restructuring to planning new projects, are undergoing reforms.
All eyes are on the new government in expectations of new measures to stimulate the recovery.
Last year, some developers, aided by debt restructuring and new partners were able to resume work on projects that had been moth-balled during the recession. Foreign participants in the industry is increasing, but to a limited extent as potential investors want to study the market s prospects. For example, the Starwood Capital Group of the United States has already bought some distressed assets but still waiting for right time to add to its portfolio. Real estate consultants warn that it will be difficult to complete many of the hundreds of skeletal structures that mar the Bangkok skyline, for reasons of finance, insufficient demand for certain types of properties and the fact that many require renovation before work can resume as the elements have taken their toll on exposed frames. According to analysts, one bright light is the rebound in sales of high quality detached houses because stocks have almost been absorbed.