Thailand developers put luxury projects on hold
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According to a survey by The Nation newspaper last week, a number of propertydevelopers in Phuket, Krabi, Hua Hin, Pattaya and Koh Samui have postponed thecompletion of their projects while they wait for economic recovery.
International property agent CB Richard Ellis (CBRE)reported that the forward momentum in Phuket property over the last five yearscame to a halt in the fourth quarter of last year due to the global recession.
This has resulted in a significant drop in transactions,prices and project launches, while cancellations have increased considerably,the agent said.
Nabeel Hussain, Manager of CBRE Research, was quotedsaying; “Our earlier estimates called for as many as 1,700 condominium units[in Thailand]to be completed in 2009, but we believe a number of projects will be delayeddue to slower take-up rates. Similarly, in the villa market, we have identifiedover ten projects with more than 450 units that went on hold or were delayedduring last year’s fourth quarter alone. It also appears that around a quarterof all upscale hotel rooms under development are now on hold as well.”
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