Improved Thai Currency: Strong Baht Not Affecting Real Estate
Thailand’s official currency, the baht, is quite strong at the moment, yet thankfully seems to be having little effect on the current state of the real estate market in Thailand, despite concern from major resort destinations and high-end condominium sales.
Areas of the Thai real estate sector that depend on foreign buyers and funds expressed some concern that this appreciation of Thai monies would decrease business and sales. In reality, the effect has gone unnoticed, say real estate professionals.
Thailand's real estate landscape is one of the most competitive in Asian markets because of the reasonable housing prices. As of recently, most of the market's buyers have been domestic, largely in part to the Asian currencies strengths and because of the weakness in the American Dollar and the Eurozone.
The current strength in the Thai currency will have the largest positive impact on those with extreme wealth and within corporations. Individuals who are possibly looking for property outside of Thailand, in areas where the economy is not back up to speed like the U.S. and some places in Europe, are going to feel the greatest effects from Thailand's strong baht.
Real estate in Thailand would only feel the influence from baht strength if the appreciation were to happen at much higher rate, which is highly unlikely. Regardless of these findings, a stronger baht is a stronger Thailand, and that's good for everyone.
What do you think about the current strength of the Thai baht?