The Thai property sector has declined 4 per cent this year from last year, due to high oil prices and interest rates, says Manop Bongsadadt, chairman of the International Real Estate Federation (Fiabci, the organisation's French acronym) Thailand.

He said demand for new housing

had dropped slightly this year, because homebuyers were delaying their buying decisions, since interest-rate hikes and rising oil prices had increased their cost of living.

In line with the drop in demand for new homes, Manop estimated that

housing sales would be reduced to 65,000 units this year, down 3,000 from last

year's 68,000.

However, Manop said other property sectors, such as office buildings and hotels, had shown continued growth, following high demand from foreign investors.

"As we host the Fiabci World Congress in Bangkok from May 26-31, joined by 600 property developers and agents, we'll meet with foreign investors who are interested in expanding their investments in Thailand, especially office buildings, hotels and condominiums," he said.

He added that this was a good opportunity for property firms in Thailand to find new partners.

TCC Capital Land Co Ltd deputy CEO Soammaphat Traisorat said his company met with foreign investors from Dubai and Europe who were interested in expanding their Thai investments. He said most wanted to invest in hotels, serviced apartments and office buildings, while others wanted to buy a second home in Thailand.

"We believe this event will open up Thailand's property market globally," he added.

Fiabci was founded in 1951 and has been active in Thailand since 2004. It has branches in 60 countries, with 3,200 regular members, 20 academic members and 130 national associations, representing 2 million real-estate professionals.

Somluck Srimalee

The Nation