Despite property market contractions from the 2020 economic downturn, Q3 picks up with increased property buying and selling
Thai real estate has faced tremendous challenges ever since the economy slowed downed at the beginning of the year, including spikes in household debts and new loan regulations from the Bank of Thailand that inflated down payments. Despite Q4 showing optimism and “golden opportunities for buyers and long-term investors”, experts aren’t certain until 2021.
According to DDproperty, Q4 2020 presents great opportunities for the real estate market, as intense competition among sellers have caused property prices to remain low, especially with condominiums and townhouses. Townhouses have been very attractive, as prices dropped to those of condominiums, posing challenges in selling condominiums, particularly if they’re in the same area.
Buyers have also shifted their interest onto the usable area of a property, building demand on houses around the central business district. These areas not only provide convenient transportation access, but also avoid homeowners from high-density living in inner-city neighbourhoods. As a result, selling landed residential properties in the outskirts of Bangkok have been more effortless during this time.
The three Bangkok locations prone to property oversupply are: Huai Khwang Subdistrict, Bang Na Subdistrict, and Suan Luang Subdistict. A price war has already emerged, so it is best for sellers to delay their exchanges if they wish to yield any profit.
Kamolpat Sawaengkit, the country manager of DDproperty said, “sellers wishing to sell properties on the aforementioned three locations are recommended to delay such decisions at the moment and wait for the market to have lower inventories and higher demand, to earn better returns.”
Despite property promotions and discounts, experts don’t foresee significant changes in Thailand’s real estate until the beginning of 2021, encouraging buyers to save their money. The nation’s political and economic instabilities, as well as a potential second COVID-19 wave, will still provide uncertainties to the market.
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