Bangkok shows resilience

Bangkok's property market has been hit by political mayhem, floods and the global economic downturn, but it keeps bouncing back stronger than ever.

Even last year's catastrophic flooding has had a positive effect for developers, as more buyers switch focus from townhouses to high-rise condominiums so that they will not be affected by future floods.

According to Real Estate Information Centre data, 36,400 condominium units were released in the first half of this year, compared with only 12,500 low-rise single houses or townhouses.

Centre director Samma Kitsin says the low-rise sector is recovering slowly from the floods. Larger developers are putting more resources into condominium projects, with listed developers launching 70 per cent of units in the first half.

Foreign developers are also getting in on the act. Two separate condominium projects with a combined value of 6 billion baht (HK$1.46 billion) will be launched in October in the Ratchadaphisek and On Nut areas of Bangkok. They are being funded by a Chinese contractor and a Taiwanese developer whose identities have not been disclosed.

Monchai Orawongpaisan, senior manager for project sales at property consultant Colliers International Thailand, told the Bangkok Post that the projects' investors were optimistic about Thailand's potential as a key player in the Asean Economic Community. The country's low living costs, good standard of living and geographical location are expected to bring an influx of regional residents when the community launches in 2015.