Growth predicted in Thai housing market

The property market in the Thai city of Pattaya is expected to post growth of between five and ten per cent this year, according to one firm.

Asian newspaper the Bangkok Post revealed that the region, located on the country's east coast, will begin to pick up again after a disappointing previous year.

Jugkarut Ruangratanakorn, vice president of Ratanakorn Asset Co Ltd, a property company in the city, said that despite political tensions in Thailand the market would benefit from rising property costs.

However, Mr Jugkarut warned that there were still hurdles to overcome if the growth was to be sustained.

Decreasing tourism, oversupply and low confidence among buyers could all have a significant effect on the final outcome of the housing market in the area.

"If property prices rise by 20-25 per cent a year on average for five consecutive years, an exit strategy should be applied. This is a sign to step back. Remember that risk management should be always done."

Potential investors to the area may be interested to know that there is a wealth of tourist attractions in and around the city, ensuring it remains a popular destination for foreign visitors.

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