Apres le coup: property in Pattaya

Does tighter visa control + bombs + coup = property price collapse?

My initial reaction to all the news coming out of Thailand at the moment is to say I am glad I did not buy a condo in Bangkok last year as I was planning to do, as I would guess that the market is about to undertake a major, downward correction. A fellow Sydney-sider bought two condos in Pattaya a couple of years ago, however, as he is a few years short of 50, he will not be able to make much use of them in the future. Apparently, he is having extreme difficulty renting them out as well, due to the market oversupply situation. I will assess the situation carefully over the next 6-12 months as to whether to buy.

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Hmm it seems this thoroughly pleasant coup has had very few pleasant spinoffs, besides Thaksins downfall, collapsing property prices, no doing.
I was hoping it would become a buyers market myself, but no, the entire world except America seems to have full confidence in Thailand and it's recent actions, even the Baht hardly moved.

I haven't seen the reaction of any other countries in the press, have you? I can't imagine many applauding the replacement of a democratically-elected leader with a military dictatorship. Please share.

Yes I have, there was a list of them on The nation, go look.

Let me guess:

Myanmar
North Korea
Iran
Singapore (oops, maybe not)

What is with you and America, Cedric?

Not all Americans are overly fond Bush and his ways. Just because I do not like some of Blairs thoughts does not mean that I am anti-British!

xuanloc, that's all.

If the world is rejoicing, as Cedric seems to believe, why the uncertainty?

FOCUS - Thai economy could suffer from deferred investments after coup

BANGKOK (XFN-ASIA) - Last week's military coup could affect investments and dent economic growth in the near term as it has created uncertainty over the country's future, especially in the eyes of foreign investors, analysts said.

'In the eyes of foreign investors, the coup was taken as a blow to democracy. Most foreign investors were surprised by the coup. They did not expect this to happen,' said an economist who declined to be named.

'After the coup, there was more uncertainty. We cannot see the direction of Thailand, and the coup would likely dampen consumer spending and slow down economic growth.'

Vallop Tiasiri, president of the Thai Automotive Institute, a state-funded agency that promotes the car industry, said he expects a slump in investments due to mounting political uncertainty.

'In the world of business, uncertainty means high risk' for major investments, Vallop said.

'During the past year, everybody was taking a wait-and-see stance before making any big investment decisions, and they have to wait again,' he said.

Since January, Thailand has been mired in the political crisis, which erupted amid public anger over the tax-free sale by deposed premier Thaksin Shinawatra's family's of shares in Shin Corp, the telecoms giant Thaksin founded before entering office.

Thailand has repeatedly revised down its economic forecast due to the prolonged political paralysis, with the economy seen rising just 4.0 pct this year compared with 5.0 pct projected earlier.

With Thaksin's government gone, Pornsilp Patcharintanakul, deputy secretary-general of the Board of Trade, also voiced caution over the economy, citing a possible cancellation of a five-year economic booster program.

Thaksin last year unveiled the 1.70-trln-baht scheme that includes plans to expand Bangkok's mass transit railway system and upgrade the country's infrastructure.

The project was supposed to bring massive foreign investments to Thailand as more than 1,000 foreign firms had shown interests in joining the project, but Pornsilp said the scheme is gone for good.

'I don't think the project will go ahead,' he said. 'Everything has changed.'

The economist who declined to be named also said the coup virtually halted Thailand's trade talks with foreign governments, particularly free trade deals with the US and Japan, the kingdom's top economic partners.

'Not only the United States, but no other country will pursue free trade agreements with Thailand, because the international community will not accept an interim government,' he said.

'Foreign governments will wait until a fully elected government takes charge next year,' said the economist, referring to October 2007 polls promised by the junta. 'Until then, no foreign government will pursue serious trade talks.'

As far as I can see, the new coup government, if that is what you call it, have taken over in a calm and probably efficient as possible manner, I personally do not think economics will be affected heavily, there might be a lull in the markets but I think the stable bht over the past week has been proof of that. And dont be fooled by a lull in the property market, all one has to do is hold until things settle down - might take a few years but eventually everything comes up roses.

Great advice, of course, as long as you have a few years to "hold on". Not everyone has that luxury.