Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Economy  >>   Property losses in Thai flooding
NEWS UPDATES Asean Affairs     26 October  2011

Property losses in Thai flooding

The initial losses of property developers from the floods are estimated at 18 billion baht (US$600 million), but the industry's stability as well as that of the financial institutions that support it should remain intact barring a catastrophic flood in Bangkok, says a consultant.

Sopon Pornchokchai, president of Agency for Real Estate Affairs (AREA), said inundated land contained 311 projects, either partially completed or planned, represented 34,203 unsold units with a value of 98 billion baht..

Assuming 20 percent of sold units are returned due to flooding, those losses are estimated to total 53.1 billion baht. Combined with the 174.5 billion in value of unsold units, the possible opportunity loss equals as much as 227.6 billion.

"If floods delay income for six months, at an interest rate of 0.5% a month that is 6.71 billion baht," he said. "If development costs in the flooded areas rise by 5%, this is another 11.26 billon baht in losses."

Developers could face 17.97 billion baht in losses, although this is only an estimate and it could worsen.

However, the industry should be able to withstand these losses as long as utilities in the inner city are not affected by floods.

If inner Bangkok is flooded, all businesses will be temporarily closed and the economy will be crippled. "Property businesses will nosedive due to lack of purchasing power," said Mr. Sopon said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    26  October  2011 Subsribe Now !
• Global economics to impact Asean 5 Subcribe: Asean Affairs Global Magazine
• US assistance to Cambodia Asean Affairs Premium

• New environment minister on the warpath

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Water quality destroys mussel farming
• Report that president paid off insurgents
• Singapore women execs in lower ranks
• Flooding fears in Bangkok

• Property losses in Thai flooding


Asean Analysis              26  October  2011

Advertise Your Brand
• Asean Analysis-October 26 Sponsor Our Events

Asean Stock Watch      26  October  2011

• Asean Stock Watch-October 26 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand