3 Real Estate Association points out that the housing market in 2023 faces more negative factors than positive factors, fears that GDP will not grow as expected - household debt drags on purchasing power Low-rise hinted at a slowdown, while condos are driven by urban people - foreigners may push up 30% growth, deposit the government to increase employment, wake up income, solve support measures

Thai real estate The main industries of the Thai economy after COVID-19 are seen as full of opportunities and challenges all around. While the direction of the housing market in 2023

Discussion on the topic "Opportunities and Challenges Real Estate 2023" at the Property Focus: Big Change to Future seminar organized by "Krungthep Turakij" on March 9, 2023 that

Mr. Meesak Chunharakchot President of Thai Real Estate Association Discussion on the topic "Real Estate Opportunities and Challenges 2023" at the Property Focus: Big Change to Future seminar organized by "Krungthep Turakij" on March 9, 2023 that this year is unlikely to see a clear recovery. Because the transition will take 2-3 years.

An important factor that will determine the future of the market is the return of 'consumer' purchasing power compared to the time when Thailand's economic growth rate (GDP) grew 13%. Especially in the industrial area, growing a lot or even after the Tom Yum Kung Crisis. The market can still recover. from employment Improved household income, as well as the expansion of the formal credit sector

So, will real estate this year recover? depends on Income per capita of Thai people and in the financial system How much is there still a gap in lending? Because now what the government holds that there are measures to support housing just renewal measures reduced fees The transfer of ownership and the mortgage of houses priced below 3 million baht contribute only a small amount. and will have a short-term effect only

  "If the government wants to wake up real estate need to create economic momentum Although this year's GDP target is 3-4%, purchasing power is still unequal. The direction of real estate is in the form of K-Shape Recovery, unbalanced, which is very worrisome. Not including the problem of bad debt that has an expansion direction "

Low-rise, slowing demand

While Mr. Wasan Kiengsiri, president of the Housing Business Association, stated that the direction of the low-rise housing market with an image growing exponentially during that COVID period This year may not happen. Because although the trend of Thai GDP is moving from 2.6% to a target of 3-4% this year, it is still subject to uncertainty after exports signal a slowdown. From the world's economic growth is only 2.7%, which is caused by the impact of war. And inflation around the world that is still very high. As for real estate, it faces more negative factors than positive factors, such as the interest rate trend is expected this year should not be lower than 2%, construction costs. high land prices construction material prices Although the price of steel slowed down, concrete, piles, tiles and roofs continued to move high, and the big negative factor was the rejection of credit by banks (rejects).

while the collection of land and building tax, especially the category of empty land It's a cost that shouldn't happen. under such conditions I would like to propose that the government reduce stepwise reductions for at least another 1-2 years to wait for the economy to recover because there is the same opinion that

Measures to reduce fees on the transfer date do not contribute much to stimulating the market. The low-rise market is expected this year to be stable or slightly negative, compared to data from the Real Estate Information Center (REIC), estimating this year's low-rise demand is negative 7.%, while new lending is negative 6.8%.

"The tourism sector is improving. But it still doesn't affect the real estate. is just a centimeter increase consumer confidence While the big problem to think about is the trend of the Thai population is decreasing. small family size In the future, it will definitely attract demand for housing.

Expected condo peak growth of 30%

However, in the condominium market Confidence is different in a positive way, with Mr. Peerapong Jaroon-ek, President of the Thai Condominium Association expecting that the condo market this year should return because the way of life of the city has returned to normal, there are traffic jams, and every company has recovered the working policy. in the office This increases the demand for housing in the city.

Reflected from the condo rental rate has returned to 70%, making it more likely to launch new projects. Supply is expected to grow 20% from the previous year, as well as the sales rate trend. will recover according to new launches From what used to be very negative during COVID therefore assessing that the overview of the condo market this year to grow at a low 30% near the end of 2019

especially city condo groups and buying from foreigners because it was found that there was a tendency for foreigners to flee from the war and escape from the high cost of living More interested in real estate in Thailand, while the other part comes to travel. and became famous for Thailand want to live and change from renting to buying, etc. However, I want the government accelerate employment support to increase the purchasing power of Thai people as well

"Employment and purchasing power play an important part, although there is concern about high interest rates, but I think this factor has little effect when compared to 30-year installments. Also help during the first 3 years of installments. There is only a problem with LTV that people who buy after 2 after 3 have to spend their savings.

The three real estate associations also urged the government to accelerate discussions and issue conclusions on policies to attract foreigners. to live in Thailand To help support the income to the local level.

Source:https://www.thansettakij.com/real-estate/558492

Date 11/3/2023