DDproperty’s outlook on Thailand’s property market after a year of slowdown
Customers have deferred their home-buying decisions in 2020, but gazing into 2021, supply and prices should hold stability. Depending on the political and economic situations, the COVID-19 pandemic, and whether the government implements property market initiatives, the second half of 2021 should display positive recovery.
House prices still continued to reduce by the end of 2019 due to excessive household debt, economic downturn, and new LTV requirements. The DDproperty Thailand Property Market Index shows gradual decrease until Q3 2020, when a slight increase occurred after the lockdown was lifted. This two percent increase was the first rise since Q1 2019, but the overall Price Index had decreased by nine percent compared to last year.
Post lockdown, the supply index jumped by 23 percent to 385 points in Q3 2020, indicating excess supply from more properties on sale, while buyers delayed their purchase decisions. Suan Luang sub-district had a 42 percent increase for condo supply in 2020, the highest of all areas. In terms of single-detached houses, Bang Na had an astounding 233 percent increase in supply, while Bang Chak sub-district in Phra Khanong district had the highest supply of townhouses via a 78 percent growth.
DDproperty Thailand Consumer Sentiment Study revealed changing consumer preferences as a result of the COVID-19 pandemic. 32 percent of consumers are distressed about property prices, while 75 percent have deferred home-buying. 31 percent are convinced that it is burdensome to lock in mortgages, while 24 percent shifted their spending towards health and wellbeing products. In closing, 20 percent find it strenuous to tour developments, delaying their investments.
Despite economic recovery from successful control of the coronavirus, the recuperation of the global economy shouldn’t be overlooked. The Monetary Policy Committee forecasts 2021’s economy to grow by 3.6 percent. Presuming there are no unprecedented events like 2020, it will take a two-year recovery period. The Monetary Policy Committee has also maintained the policy rate at 0.5 percent per year, the lowest rate thus far, in hopes to help with the recovery journey.
For more detailed information on the 2021 outlook, please visit DDproperty.com
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