Realty sector 'may be hit hardest'

[Braveheart]

Extracted from the Bangkok Post: Bangkok Post

 

Thailand's property sector business this year may retreat as much as 10 to 20 per cent if last Sunday's bomb blasts here were caused by southern terrorists, according to a senior property business executive.

 

Thai Appraisal Foundation president Sopon Pornchokchai said the blasts on New Year's Eve may impact the property business sector in 2007 more severely than an earlier projection that it would either remain steady or decline not more than 5 per cent.

 

An estimated of 60,000 new units are projected to be constructed in 2007 with the total value of approximately Bt160 billion.

 

The extent of the negative projection depends on whether the southern insurgency is actually spreading to the Thai capital, and not on political conflicts which could be settled in the nearer future, Mr. Sopon said.

 

According to Mr. Sopon, the property business segments most likely to be hardest hit are office buildings and shopping centres, as foreign investors may delay their buying. hotels and resort construction will also be hit as the number of tourists dwindles.

 

Prime Minister Gen. Surayud Chulanont and military leaders of the Council for National Security (CNS), which launched the coup last September 19 against the elected government, said earlier that the southern insurgents were not behind the incidents. (TNA)