Thailand’s property market experiences a slow climb

An easing of mortgage rules is expected to normalise the property market in 2023

CBRE Thailand told Bangkok Post that the property market is dependent on local demand, as foreign travel has been slow. 

“A decline in tourist numbers affected both residential and retail sectors,” said managing director Roongrat Veeraparkkaroon. “Given this challenge, the property market should adapt, be more proactive, and brace for uncertainties that could emerge,” she added.

Rathawat Kuvijitrsuwan, head of research and consulting at CBRE, shared that there are four factors that will have a significant impact on the property market. These include the development of the pandemic, government policies, international travel policies, and spending power.

The Star shared that Thailand’s property market may not revert to pre-pandemic levels until 2024 due to a slow economic recovery amid the outbreak of the Omicron variant and increased inflation. 

“Rising inflation is also impacting people’s income and purchasing power,” said Vichai Viratkapan, head of the Government Housing Bank’s real estate information centre.

An easing of mortgage rules is expected to normalise the property market in 2023, a vital sector that accounts for about 10 percent of GDP and employs 2.8 million people.

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Wichai Wirattaphan, acting director of the Real Estate Information Centre (REIC), said in a statement for The Nation that Chinese nationals bought nearly 60 percent of condominium units during the first nine months of 2021. These purchases amounted to THB17.8 billion (USD551.8 million).

Other countries that bought properties in Thailand include Vanuatu, the United States, the UK, and France. Wichai added that Vanuatu nationals made a significant impact on the property market, despite only buying 23 units, as these were sold for THB44 million (USD1.3 million) on average.

Foreign buyers usually purchase properties in Bangkok, Chonburi, Phuket, Chiang Mai, and Prachuap Khiri Khan.

According to The Thaiger, tourism operators have issued an open letter to Prime Minister Prayut Chan-o-cha and other government officials, urging them to reopen the nation to foreign visitors in March.

The Property Report editors wrote this article. For more information, email: [email protected].