The Thai government’s spending on meg projects across the country is expected to improve economic growth and help improve the overall property market in 2018, reports local media. These factors, along with a rising confidence in the political situation, could mean this year turns out to be better for developers than last year.
“The property market in the 1st half of 2017 slowed as most developers focused on selling inventory rather than launching new projects. In the 2nd half, the market improved after movement on the government’s investment in transport networks and infrastructure projects,” says Dusadee Tancharoen, Managing Director of MK Real Estate Development, to the Bangkok Post.
The Eastern Economic Corridor (EEC) is another government project that is predicted to increase economic sentiment and property investment in Thailand’s Eastern Seaboard. The property market here could grow by as much as 6 to 8%, an improvement of 2 to 3% from last, according to Dusadee.
The economy in Thailand is expected to benefit from positive factors such as the reduction in the household debt-to-GDP ratio and steady interest rates even in the face of rising US interest rates. These 2 factors should help home buyers increase purchasing power in the property market.
“There are good signs for the Thai economy. It will expand 3.8-3.9% this year, being boosted by an expansion in exports and tourism, government spending on infrastructure projects and a general election by the end of 2018 or early 2019,” says Chaiyan Chakarakul, Managing Director of Lalin Property.
Lalin plans to launch 8 to 10 new projects in Greater Bangkok to help it capitalise on an increase in demand. The developer will also launch new projects in the EEC provinces of Chachoengsao and Chon Buri as it believes the mega projects there will improve demand for residential projects in these locations.
Despite predictions from the experts, property market still needs to be watched closely about its trend and momentum. In the meantime, you may want to get some useful insights about Bangkok property market, check out DDproperty Property Index andDDproperty Property Market Outlook for more information.