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 However, it is the first time that the inflation-adjusted price of a barrel of crude oil has broken a record of more than US$120 (Bt4,014). Many experts expect a figure above $150 per barrel in the second half of the year, signalling a world recession.

Although the government made a lot of effort to stimulate the property sector early this year, the negative impact from higher inflation, increasing interest rates, higher material costs and loss of consumer confidence due to the oil crisis and political instability will bring the sector into negative territory.

Rising construction costs will lead to lower margins for developers who have sold their projects last year but have not started construction due to stricter environmental rules. Some developers may decide to return deposits to their customers.

However, home-buyers will get an opportunity to buy lower-cost units when they look at projects that are approaching completion.

Looking at the positive side, the Asian financial crisis led to banking reforms. Bank of Thailand watched the property sector closely and commercial banks carefully approved  loans over the past few years.

The bigger developers have become stronger compared to the situation before the last crisis. Smaller developers have become weaker. Therefore, mergers and acquisitions might be the solution for their survival after this crisis.

 The top 10 developers will soon control more than 80 per cent of market share in Bangkok metropolitan regions just like what happened in Hong Kong and Singapore.

Condominiums and townhouses in the central business district will become the standard in the coming urbanisation era as transportation costs soar.