Analysts are now expecting a 5 to 10 per cent in growth when it comes to the real estate market of Thailand. This is despite of the expected challenges that will be brought about by many factors, both internal and external.
According to a statement released to The Nation by the Housing Business Association’s president, Athip Peechanon, they are expecting a decline if not a stagnant growth in the condominium market in the country. The housing estates are also expected to be the main driver in the growth of the property market.
He also added, during a forum regarding the investment trends in the case of the property sector, that there will be expected new developments within the year but will only be limited in Greater Bangkok. These projects will only involve those who have huge roles in the property market.
These days, it is common for banks to me more cautions especially in granting loan extensions especially small to medium sized property companies. These companies are usually the ones that don’t have a set development plan for the specific project they want to develop.
Due to the stimulus measures that were conducted by the government with regards to the property sector, there is now a higher delivery to all buyers in terms of housing units.
The property transfer processes that were done by the consumers were also finished faster because of the advantages that the stimulus package has presented. Now that the stimulus packages are no longer in existence, there is a possibility of delay in delivering properties on the consumer’s side.
Athip also revealed that there is now a problem in oversupply when it comes to condo developments and may continue to remain so for another year. Despite these news, the housing estates in majority of the provinces in the country continues to have a high demand because consumers view these properties as necessary assets.
According to Visut Srisuphan, the deputy finance minister, this year will not only be challenging to Bangkok real estate but also in all businesses.