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News Release

Bangkok

22 May Coup: Impact on real estate limited

While the military coup that took place in Thailand on 22 May is expected to have a negative impact on the country’s investment sentiment, the impact on the real estate sector has remained minimal .


​While the military coup that took place in Thailand on 22 May is expected to have a negative impact on the country’s investment sentiment, the impact on the real estate sector has remained minimal as the coup was no surprise to many local and foreign property investors here. Mrs. Suphin Mechuchep, Managing Director of an international property services firm, JLL, shared her views on the recent coup’s impact on real estate.

“Our discussions with a number of property developers, investors and corporate occupiers showed that the coup came as no surprise. Many of them had not expected negotiations between pro- and anti-government parties facilitated by the army to settle the country’s political crisis.” 

“In addition, most of the existing property players in Thailand have appeared immune to the current political situation which is one of many disruptions they have expereinced over the past years, whether they be previous coups, political violence and natural disasters. Experience showed that most of these disruptions had either short-lived or limited direct impact on the real estate sector.”

“In fact, experience also showed that economic crises were more harmful to real estate. Capital and rental values in some property sectors in Thailand fell during the Asian Financial Crisis (1997-1998) and the Global Financial Crisis (2007-2008). But over the past seven months of pre-coup anti-government protests, capital and rental values in most property sectors have continued to grow.”

“However, the coup may scare off property investors who are not familiar with Thailand. But regardless of the military intervention, new investors are less willing to enter the Thai market anyway, due to political turmoil that the country has endured.”

“Similarly, since the political tension escalated in late 2013, we have already seen property developers, owners, investors and occupiers becoming more cautious, with some of them adopting a wait-and-see approach. There remains no clear evidence of the coup changing the situation at this stage.”​