DOLLAR STRATEGY Laguna Property Takes USD Tactic

Posted: 03 May 2011 | 6:00 am

One of the island's largest property developers Laguna Phuket has started pricing properties in US dollars in order to address potential buyer concerns over currency fluctuations.

Currency risk over the past 36 months has sidelined numerous purchasers which can be traced back to then slide of the UK pound and Euro. At the same time the Thai baht has continued to appreciate at the expense of the USD.

Laguna has priced all units in the overseas currency with the exception of the Lofts which has a low pricing point starting from THB8.9 million.

Flip flops on currency remain a significant business issue in Phuket which can be traced back to the 1997 Asian economic contagion which saw hotels flee to quoting room rates in dollars. Going into the next decade the perceived safe haven vanished and as the region rebounded the shift went back to Thai baht rates.

For island property many significant estates substantial pools of completed unsold inventory which creates balance sheet headaches. Cash flow looks to be a primary motivating factor in the new marketplace.

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