Real estate is not bright, facing negative factors, including interest rates, rising costs, unstable politics, loan denials, suggesting to expand business lines, potential to increase income, pulling "Fintech-PropTech" to strengthen, waiting for the government to inject strong measures to revive the Bangkok market, unlocking the new city plan in 2015.

The direction of the real estate market, one of the engines of recovery of the Thai economy, is still in a slowdown from rising interest rates. No government injection measures while consumer income declined Increased household debt Affecting the ability to buy and borrow "decreased" Yesterday (July 26), "Economic Base" held a discussion on "Property Insight: a big problem to revive real estate" with the public and private sectors sharing views on various dimensions.

private sector brainstorming "Opportunities and Challenges, Revive Thai Real Estate" by Mr. Pornnaris Chuanchaisit, President of the Thai Real Estate Association, said that this year the real estate market is not very good, with the tendency of refusing loans to increase from formerly housing prices of 1.5-2.5 million baht per unit. Now up to 3 million baht per unit.

If you look at the real estate sector as a tool to stimulate the economy The government should plan at the national level. To encourage market growth, such as attracting foreign investors to join There must be clear measures and policies.

“Don't look at real estate. be like a cow that is fat enough to be slaughtered If you want to grow with quality, you need to plan. At this time, even if the unit price is over a million baht, it can still be sold, having to sell 3 times, affecting real estate companies. middle-lower level As for the large market that is located on the stock exchange, it is still enough to go.”

However, entrepreneurs must adapt to cope with changes. by expanding new potential business lines such as wellness business, real estate for industry Which must study the information carefully before entering the market Or find a joint venture partner to reduce the risk. Including studying businesses that cause sustainability. or developing mixed-use projects to reduce risks and increase opportunities to expand a wider customer base.

Mr. Uthai Uthaisangsuk, Chief Operating Officer of Sansiri Public Company Limited, said that the overall real estate market Highly uncertain due to rising interest rates Affects home loan interest and increases costs. Subsequently, the inflation situation was higher than the previous year, the price of construction materials had already increased by 8%. This year, the oil price did not increase much. Makes building materials a bit more The wage situation, if the new government raises wages by 450 baht, will affect the cost of house prices by 4-5%.

“Among the uncertainty of the real estate market. There are still opportunities in the mid- and upper-end markets that are not affected by purchasing power. Make the project development plan after COVID from the Affordable market segment to the middle and high-end markets. Especially high-end projects support the ability to buy. For example, in Phuket, it continued to grow well because of buying pressure from Russia that came back.”

The overview of the real estate market This year is expected to grow in line with GDP of 3%, but if a new government is formed quickly with new measures to stimulate the economy will have a positive effect on the real estate market From the current market facing the problem of household debt as high as 15 trillion baht, accounting for 90% of GDP, making it more difficult for the lower market to buy a home.

For the overall picture of Sansiri in the first half of the year, there was growth and the company was strong. both from the product Presentation of quality, innovation and after-sales management word of mouth service along with financial strength This allows the company to continue to expand this year.

The number of loan rejections soared 57.2%.

Mr. Sanphin Sukhee, Chief Executive Officer of Frasers Property Home (Thailand) Co., Ltd., said that the real estate market was in a difficult situation and was slowing down. Competition among large operators is very high. The entrepreneurs are focusing on expanding the market in the high-end housing market. because it is a segment with purchasing power

“The real estate market has been affected by the tourist market this year, estimated at 29 million people, which may slow slightly. Because Chinese tourists are not full Including a contraction in exports It has been negative for the ninth month, affecting luxury homes that started to slow down in the first half of the year.

together with the problem of high household debt Especially the low-end group, which caused the number of rejected loans to increase by 57.2% from the previous 52.9%, an increase of 4%. In addition, there was pressure from higher interest rates. Causing homebuyers to pay longer installments In addition, the political situation is volatile. If assessing the overall picture of the pyramid base of Thailand, which is rich, clustered and scattered, on the other hand, entrepreneurs have problems with slowing down performance.

Hope for strength from the new government

In this regard, entrepreneurs in the real estate sector must continually adapt Including launching a campaign to give discounts to customers Making Business Plans with More Flexibility And reduce the cost of the organization to be "lean" as much as possible, ready to focus on building new home designs that do not focus on high investment. Focusing on Sustainability Policy or ESG

“Therefore, a strong drug vaccine desired from the government Including issuing measures to give special interest to people who buy the first home. More flexibility in lending Not canceling the LTV measure, issuing new measures to cover the expensive housing market as well.

Promote "Fintech" to stimulate the market to recover

Mr. Woradet Rukkhaphan, Chief Executive Officer of V Beyond Development Company Limited, said that in the situation where the real estate market affected by many factors use of new technology Especially from the group "Prop technology" will help the real estate market. Overall returned to expand strongly. including having a platform for buying and selling houses Issuing new credit innovations

Including the use of AI technology to assess credit risk. The real estate entrepreneurs and consumers have changed by turning to alternative loans, including hire purchase. Renting and investing through financial innovation And there is a real estate trading platform through Block chain, which in the future has an opportunity for real estate investors. Starting with a budget of 2-5 hundred thousand baht through the use of technology to issue TOKEN coins

In addition, assessing in 2024, the Bank of Thailand (BOT) will issue new measures to supervise intensive lending, which will affect entrepreneurs and make it more difficult for people to have a home, making "fintech" more important to the real estate market.

At the same time, do not want to focus only on the LTV measures that control the lending of the real estate market. But nowadays there are new credit control methods that take care of non-performing loans. And will result in a better money management plan. Including wanting to extend the housing payment period from 30 years to 40 years to 50 years, providing an appropriate interest rate. Easier approach to lending because of driving real estate Overall, it must be in the credit system.

Unlock the new Bangkok city plan, year '68

Mr. Thaiwut Khankaew, Director of the Office of Urban Planning and Development (SorPorPor.), Bangkok Said in the topic "Bangkok City Plan: Transforming the Greater City", stating that currently revising the draft city plan to include Bangkok. The 4th revision after the current comprehensive city plan (3rd revision) has been used for a long time, open to public hearings and relevant agencies, both public and private, for the 5th time, it is expected to announce the draft of the city plan during the month. September-October, then enter the consideration process. Expected to be announced in 2025, there will be a draft of the 4th Bangkok City Plan.

“From now on, the age of the new town plan will never be the same again. and will improve the physical layout and necessity as appropriate. There is a new color scheme change. appropriately so that the land can be developed for greater efficiency By changing the denser residential areas, the area can be developed to be more useful.”

There are also measures that are instrumental to help develop large-scale projects (PUDs), allowing flexibility in the construction of large buildings. By adjusting the building area to land area ratio (FAR) and development rights transfer measures, increasing the development area by 20% or reducing car parking measures by 25% can help reduce development costs.

The city planning measure called "FAR Bonus" or increasing the ratio of total building area to land area is an incentive and encourages the private sector to develop more projects that benefit the public.

Transportation's plans for the new government to push 5 electric train lines

Mr. Chayatham Phromsorn, Permanent Secretary of the Ministry of Transport, gave a speech on "Developing infrastructure and driving the Thai economy" stating that the goal of the Ministry of Transport is to transport goods or people from origin to destination conveniently, safely, on time, at reasonable prices. and efficient affecting the economy National income from tourism, industry and agriculture

In addition, to change people's behavior to use public transportation in the city, there is a plan to accelerate the development of the electric train project under the M-Map1 plan to complete 14 lines, a distance of 554 kilometers, which will be completed by 2032, with the projects under the M-Map1 plan gradually opening for service. The Ministry of Transport aims to open 80% of all services by 2029.

“If the M-Map1 electric train project opens for service as planned, will allow people to walk no more than half a kilometer and find a train station It's like Tokyo, London and New York, where rail travel is the mainstay. At present, the city electric train is in service for 241 kilometers, including the Green Line, Purple Line, and Red Line, as well as the Pink and Yellow Lines.”

Source:https://www.bangkokbiznews.com/property/1080630

Date 27/07/2023