Flooding In Central Thailand

Flooding In Central Thailand

Tips The Scales Of Supply And Demand

Central Thailand has recently been devastated by flooding that has crippled the nation's capital, forcing the closure of the Don Muang Domestic Airport and causing damage to homes and businesses throughout the suburbs of Bangkok. The floods have displaced millions of people, and tragically claimed the lives of more than 400. While Bangkok's central business district has been spared, several factories and industrial parks outside the city have been inundated with floodwater.

 the people of Thailand are well equipped to deal with adversity

Now that the floods have began to recede, the question on many people's mind is what will be the affect on the country's economy, and how will this play out for the property market? It is clear that the floods will have a negative impact on the agricultural and manufacturing sectors, how long it will take to fully recover remains to be seen. So far the indications are that the damage to residential properties in Bangkok's suburbs has tipped the scales of supply and demand, leaving people scrambling to get into rental units in areas that have not been affected.

Reports of price gouging are piling up at the Internal Trade Department, with thousands of complaints from Bangkokians that landlords are demanding as much as 2-3 times the normal rates for rental units inside the city. People are paying these prices, because they have very little choice, with increased demand there are fewer properties available. At first glance, this may sound like shameless profiteering during times of crisis, however some landlords defend their actions by claiming they are only protecting themselves. Landlords are claiming that potential renters intend to use these low cost rentals as a temporary home for up to a dozen of their family and friends, leaving the property in shambles just as soon as the flood waters recede.

This sudden shift in the supply and demand in Bangkok is likely to spill over to the nearby resort town of Pattaya, where there are several condominiums and housing projects that will be even more appealing to potential home buyers in light of the recent events in Bangkok. Property developers across the country are seeing a significant increase in potential buyers spilling out of Bangkok, looking for properties in other areas of Thailand. Even as far away as Chiang Mai in the North, the property market has seen a sudden boost in interest in the past month.

It will certainly take time for the country's economy to get back on track, however the people of Thailand are well equipped to deal with adversity, and despite many people losing their homes and all of their belongings, spirits remain high. Thai people show a unique ability to make the best of their situation, without dwelling on their problems, they pick up and move on, keeping a smile on their face at all times. This is what draws in so many tourists year after year, as the slogan goes "Thailand is truly The Land Of Smiles".