The bullets were flying in Thailand's capital Bangkok last month, and the unstable political situation has seen foreigners deferring their investments, according to CB Richard Ellis (Thailand).
However, investors who have already bought in the city saw the luxury property market enjoy a late revival last year as confidence returned to the sector.
Thailand is no stranger to political unrest and areas outside of Bangkok have often proved attractive to foreign investors despite what might be happening in the capital.
The fourth quarter saw the Thai economy post gross domestic product growth of 5.8 per cent, mainly due to the rapid recovery of exports to Asian markets. Similarly, the high-end property market enjoyed an upturn. Despite the global economic crisis, condominium presales last year increased by 25 per cent to 46 billion baht (HK$11 billion) from 2008.
With Thailand's GDP growth forecast to be up 4.7 per cent this year, the luxury property sector is confident that strong demand from Thai buyers will continue to fuel the upturn. With less demand coming from overseas, it could be a time for those locals - and foreign investors with an appetite for some risk - to snap up luxury residences at good prices.
Hubert Viriot, chief executive of developer Raimon Land, says domestic buyers represented more than 90 per cent of the company's sales in the final quarter of last year. 'Since Thailand's political situation is still unpredictable, many foreigners have been fleeing Thailand or changing their retirement plans. We believe the current trend will continue, with Thai customers who will buy and invest as they see opportunities to secure assets at good prices. There is less competition from foreigners this year, leading to less escalation of prices.'