Prices of land and other property in flooded areas will drop in the next couple of years, while home purchasing sentiment will take at least six months to return to normal, says the property consultant Colliers International Thailand.
Managing director Patima Jeerapaet said the next two or three years will be a golden opportunity for property developers to buy up land in flooded areas at bargain prices.
However, there may not be any large migrations of residents from the flooded areas, as Thais usually like to stick with familiar locations and will forget about the flooding in the next couple of years, he told a media conference on the post-flood Bangkok real estate market yesterday.
“Homebuyers will wait and see the situation after the floods and delay making a decision. Housing sentiment will resume towards the middle of next year at the earliest. Housing developers will delay launching new projects,” he said.
While new low-rise launches will be postponed, inner-city condominiums, especially near mass transit, will continue to enjoy healthy sales.
After the floods, the protection paradigm will change. Individuals will raise up land levels and erect water barrier fences.
Drainage systems will be improved, water storage tanks installed and electrical sockets moved up. “The popularity of single houses and townhouses will stay the same. But their design may change to that of high-rise developments, with parking on the ground and the living area including the electricity system starting from the second floor,” he aid.
He said an initiative by many condo developers to have fewer parking slots in new residential high-rises should be scrapped, as car parks in such buildings are crucial for keeping residents’ vehicles safe from floodwater.