Mortgage-easing and border reopening are expected to normalise the property market by 2023
According to Bangkok Post, easing of housing loan regulations and reopening of borders is expected to boost Thailand’s property market back to pre-pandemic levels sooner than previously forecasted.
The property market is predicted to normalise in 2023, from the initially forecasted timeframe of 2025-2027, said the Real Estate Information Center (REIC).
Last month, the central bank relaxed mortgage to help recover a key sector that contributes around 10 percent of gross domestic product (GDP) and employs 2.8 million people.
“The easing of mortgages and the country’s reopening will make the real estate business active again,” said Vichai Viratkapan, acting chief of REIC.
He added that newly sold housing units are expected to fall by 35 percent to 43,051 units this year before doubling in 2022.
The easing of loan regulations would help increase mortgages by THB50 billion (USD1.5 billion) per year, said the central bank earlier.
However, Vichai said that banks are still cautious about lending despite eased rules due to a weak economy, as well as higher costs and migrant worker shortages faced by the property sector.
To solve this shortage, the government plans to reopen borders to workers from neighbouring countries.
Moreover, the finance minister predicted earlier this week that the economy would grow by one person this year and four percent next year, after a 6.1 percent slump in 2020.
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