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In fact, this growth rate reflects the 85.37-per-cent registration rate of condominium developments, which should not be included in the calculation of the growth rate. This is because sales of condominiums are made before construction is complete, and ownership takes one to two years to complete legally. Town houses and single houses, though, are ready to be sold and can change owners within a year. Thus, "horizontal" real estate, including town houses and single houses completed within 2008, had a negative growth rate. At the end of last year, growth of sales of single houses stood at minus 16.42 per cent, while town houses were at minus 23.35 per cent.

Real estate has seen continuous negative growth since 2005, but there has not been any year where the numbers have been below zero. 2008 was bad enough; then we entered 2009, with its ongoing political unrest.

One interesting aspect is, as soon as the new government took control, the real estate overview appeared brighter, as many big players expanded their projects, notably from January till March. We learned that, in fact, our country's economy is not at all a lost cause; there still is purchasing power. So in deciding whether to buy, the main short-term factor is the political situation, as seen from actual sales. The political situation impacts greatly on consumer confidence and, consequently, purchases.

In the long run, it's the economic status that matters. This year, the government announced that the country's growth rate could be as bad as minus 5 per cent.

The real estate overview now is dominated by the big players, and in this situation they will only get stronger. Given the political mess right now, I believe the real-estate business is shifting to a slower pace again, and will stay that way until the situation is more or less resolved.

Doubts will linger until the end of the year. Some even forecast an overall contraction during the first and second quarters.

Personally, I fear for the third and fourth quarters. The government announced continued negative growth and that has prompted all players to look at their own capacity and potential, especially money-wise, which is the most important factor in any business.

I assume entrepreneurs are now in an awkward, frustrating situation and the sales may not be so bad. But when you look at the money spent on advertising you realise it's not worth the return in terms of sales. This year, advertising cannot be cut, but the money must be spent wisely.

Therefore, when the economy slowly picks up, all business players must firstly draw up financial plans and, secondly, focus on their organisations. They should start with planning long-term schemes.

Good plans, though, do not have to say exactly what will be done until the end of the year, but instead allow you some flexibility to adapt to the current situation and any possible difficulties. Weekly meetings are crucial to keep the plans up-to-date. In times like these, organisations with long lines of command might have communication problems and delays, which could greatly impact productivity and effectiveness.

What CEOs should do is take closer care personally to actually keep up with accurate information, either positive or negative.

Though the country seems to be struggling with the economic crisis, there is still purchasing power. What is threatening right now is actually consumer confidence, which showed the ability to come back quickly during the first quarter when the unrest was solved. I do believe that the real estate market will improve once the political feud ends and the government encourages citizens to spend money.

In conclusion, the critical factor for the real-estate business right now is politics, as it relates to consumer confidence. As for the long run, it depends on the outlook for Thailand's economy as a whole. But rest assured, we won't go through any more economic bubbles like the one seen in 1997.