Foreigners transferring condominiums soaring "REIC" predicts that in 2024 the real estate market will recover, virtue of the "Settha 1 government" to build confidence Keep an eye on measures Stimulate purchasing power, bring back the LTV criteria - Free Chinese-Indian visas to enter the country in the 4th quarter

There are not many developers' voices suggesting that the government "Srettha 1" revive economic stimulus measures. The Real Estate Information Center (REIC) predicts that in 2024, the overall real estate market will recover. There is a positive transfer of ownership at 4.1% compared to a very negative year 2023. There are factors from having the government to drive the country's economy, bringing back LTV measures to stimulate weaker purchasing power, while the arrival of Chinese tourists is the main purchase force in Thailand. There are still not many due to the impact of China's domestic economy, but in the fourth quarter of this year, it is expected that the volume will increase from the high season.

When examining in-depth the demand for residential condominiums (condominiums) of foreigners In Thailand, both for living and investment, found that there are numbers of ownership transfers. returned to almost normal compared to before the COVID situation, reflected from

The first half of this year has the number of condominium ownership transfer units. of foreigners 7,338 units, accounting for 14.7% of the total condominium ownership transfer units, valued at 24.5% or 35,211 million baht, with transfer units increasing by 65.6%, transfer value increasing by 57.8% compared to the same period last year. It was found that Chinese nationality is still the number 1 purchaser. While Myanmar nationals bought rooms with the highest value with an average price of 7 million baht and an Indian nationality bought a room with an average area of 89.8 square meters.

When digging into details, it was found that the top 5 with the highest transfer of ownership, number 1 is still Chinese nationality, with the highest transfer of ownership in both the number of units and the value of 3,448 units, worth 16,992 million baht, second place is Russia, 702 units, worth 2,556 million baht. No. 3 USA, 293 units worth 1,289 million baht, No. 4 France, 269 units worth 1,127 million baht and No. 5 UK, 260 units worth 1,287 million baht.

Which is good for the overall economy when Prime Minister Srettha Thavisin has a policy to stimulate the visa-free tourism industry, China, India, incentivizes travelers to travel to Thailand to benefit from the purchase of real estate further.

Mr. Wichai Wiratkapan, Inspector of the Government Housing Bank and acting director Real Estate Information Center (REIC) reflects that the overview of real estate next year There is a tendency to recover better. Ownership transfer forecast is slightly higher. Compared to last year, this was caused by Expected from the domestic economy slowing down, there is no help to support purchasing power. Financial institutions are strict and loan rejections are high. However, if you want the real estate to recover

It is suggested that the government must Issue measures to stimulate the real estate business Both bringing back the LTV measure, increasing the quota for foreigners to own more condominiums. From the current condominium law stipulating not more than 49%, only in provinces, tourist cities and important economic cities, including allowing the private sector to buy back housing like the National Housing Authority in the event that the buyer cannot pay installments, etc.

At the same time, the Settha1 government has a policy to encourage visa-free tourism to China and India during the quarter, believing that it will help the arrival of such nations. More people are coming to buy condominiums in Thailand. Besides tourism

However, in the overall picture during the first two quarters of this year Thai real estate sector Still dealing with negative factors in many areas. Both the recovery of the overall economy is not yet fully recovered. The rising interest rate situation is starting to affect people's ability to buy housing. The household debt ratio is higher than 90% of GDP. Housing prices are rising. These negative factors have resulted in to the changes in demand and supply in the housing market during the first 2 quarters.

The demand for ownership transfer units has decreased. and lower new sales compared to the previous year It reflects that the purchasing power of housing is not as strong as it should be. And still need a significant stimulus. Therefore, it is necessary to have measures to stimulate the real estate sector that are clear and to the point. This is considered a challenge for the new government in formulating economic policy.

Mr. Ponnaris Chuanchaisit, President of the Thai Real Estate Association, stated that when the government comes in to run the country, it is seen that it helps drive the country's economy to continue growing. and there are various measures to stimulate the real estate business Including foreign purchasing power as the government stimulates the tourism sector.

Reflection Corner: Mr. Surachet Kongcheep, Managing Director of Property DNA Company Limited, stated that according to information from "REIC" it was found that foreign purchasing power in the condominium market in Thailand is still in demand and has continued to exist for many periods. previous year and is expected to have an increasing trend which is a good sign

Source:https://www.thansettakij.com/real-estate/574793

Date 31/08/2023