Sales of new homes easily accessible to mass transit system routes recently approved by the government should help improve Bangkok's battered and sagging property sector, currently beset by political and economic challenges, according to a leading real estate appraisal executive.
Agency for Real Estate Affairs president Sopon Pornchokchai said bidding for the construction of the Red Line connecting Rangsit, Bang Sue and Talingchan is expected to be held in July and should be a blessing for the property sector.
Current political and economic crises have already lowered average housing prices by approximately 25 per cent during the first quarter of this year, Mr. Sophon said.
And government measures aimed at stimulating housing sales are not very fruitful because the public is cautious on spending while businesses are reluctant to invest, he said, adding that housing values are anticipated to fall about 20 per cent in 2007.
Political problems will worsen if the general election scheduled for December is postponed, Mr. Sophon said. And furthermore, the economy would be negatively affected for a long period if any new government formed after the election is not stable.
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