Foreign investors will return to Thailand's coastal resorts

The cyclical nature of the property market in Thailand's coastal resorts means foreign investors will return - sooner or later.

Unlike the constant demand for real estate in Bangkok, the property markets in Thailand's coastal holiday destinations such as Pattaya, Phuket, and Samui have remained subdued during the first half of 2010.

Professional real estate services firm Jones Lang LaSalle said that, dominated by foreign investors, investment activity in these areas has witnessed a marked slowdown since the global financial crisis escalated during the final quarter of 2008.

But as many parts of the world have seen signs of economic recovery, a number of international investors are regaining their financial strength and are expected to come back into Thailand's holiday property markets in the near future.

In addition, Jones Lang Lasalle noted, there are several good resort properties and land offered for sale in these markets. Selling prices are generally very attractive with some properties being offered for sale at a price discounted by between 20 and 30 per cent from the peak levels seen three or fours years ago.

Umpon Thepnumsommanus, Director of Investment at Jones Lang LaSalle, said: "Smart investors understand the cyclical nature of property markets. Sooner or later, these investors will come back."

Source: Property Report (July 14, 2010)