It’s a fact. The strength of the Thai baht, means Thailand property and real estate is more expensive for overseas buyers purely based on currency fluctuations.
Many business sectors have expressed concern over the strengthening baht, as it approaches its three-year high of 32.2 baht versus the U.S. dollar.
Thailand property developers and real estate agencies, especially those targeting the growing number of overseas buyers, need to be aware and monitor the situation closely.
However, the Kasikorn Research Center says the baht’s appreciation remains in line with other currencies in the region.
Kasikorn Research Center noted that the U.S. dollar still lacks significant support factors, despite indications by the U.S. Federal Reserve that it will continue to raise interest rates.
That move is in contrast with Thailand’s intention to hold interest rates at 1.5 percent for much of 2018.
Using exchange rates today a THB 5 million condo will cost US$ 155,343, while on August 1, 2017, that same THB 5 million condo would have cost US$ 150,183.
This day last year, January 6, 2017, that same THB 5 million condo would have cost its buyer US$ 139,954.
That’s an 11 percent rise in currency terms alone for Thailand property purchases.
The research center said it will continue to monitor the volatility of the Thai baht, due to various global uncertainties, as interest rate hikes by the Federal Reserve are not the sole factor affecting the currency this year.
Factors impacting the currency include Thailand’s budget surplus, and the domestic and international politics of the United States, the Center said.
It advised the private sector to use appropriate risk management tools, especially businesses dealing with international transactions, to better manage inflows and principle capital.