This year is expected to be a good year for the housing market in Thailand, according to local experts. The government spending on megaprojects and growth in tourism and exports in the country will positively impact the housing market allowing it to improve on 2017’s results.
The housing market is predicted to increase by 5 percent in the 1st quarter with several large developers actively launching new projects and dominating the market. Last year, the property market recorded THB406 billion in pre-sales, but this total is likely to increase in 2018.
“Newly launched projects from large developers can attract homebuyers. Their financial status is very strong, while small and medium-sized firms still struggle and most of them have only existing projects,” says Atip Bijanonda, President of the Housing Business Association.
Another factor in the improving the housing market is the relaxation of bank mortgage rules that have made it easier for prospective home buyers to get mortgage loan approvals. Interest rates are also relatively low although that could change later in the year.
“Interest rates this year will rise in the second half by 0.5 percentage points. This may slightly weaken home buyers’ purchasing power, but no major impact will be seen because interest rates are still low today,” says Somnuek Tanthathoedtham, Senior Executive Vice-President of N.C. Housing Plc, to the Bangkok Post.
The residential market in Greater Bangkok and major provinces will all increase this year. The Eastern Seaboard will be an area of strong growth with the 3 provinces in the Eastern Economic Corridor zone likely to see a large influx of foreign buyers.
One segment predicted to slow is the luxury market, which could decline by as much as 30 per cent after demand was absorbed in past years. On the other hand, sales of units priced below THB5 million are expected to increase in 2018 and beyond.
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