Thailand's Residential Property: Cautious view maintained.

Section: Stocks - Good 2010 performance. Based on a survey by AREA, Thai residential demand reached a record high of 94,253 units in 2010, +60% YoY. This was driven by the government stimulus measures and low interest rates. The survey indicated that majority of demand shifted to the low-end segment, with housing priced below Bt3mn accounting for 70% of the total, thanks to new product development.

... but cautious view maintained. Demand is expected to soften this year for several reasons. 1) Last year home purchases were accelerated by the upcoming expiry of tax breaks. 2) This year interest rates are heading up, thereby reducing affordability. 3) We cannot expect more …