COVID-19 Raises Caution Amongst Property Buyers

DDproperty Editorial Team
COVID-19 Raises Caution Amongst Property Buyers
It is safe to say the COVID-19 pandemic shook every corner of the world one way or another. Social distancing, isolating, lockdown, and quarantine all became everyday words. Personal hygiene became more important than ever before.
There was a focus on health services as concerns rose about whether they would buckle under the strain. Economies took a battering as some businesses had to shut shop and slowly travel ground to a halt.
Despite the outbreak commencing nearly a year ago, its effect is still widespread. Some countries shut their borders to eradicate the virus by limiting an entry point, and as the weeks passed and case numbers rose, virologists were able to learn more about the virus and how to handle it.
The property market is directly linked to the economy so unsurprisingly it did not escape the pandemic. The biggest issue faced by the industry is affordability. Slumping economies directly affected purchasing power, particularly as unemployment rates increased weakening appetite for property investments.
Thailand Consumer Sentiment Study H1 2021 Report spoke with over 1,000 people to reveal the perception of Thailand’s property market amongst individuals. This data is intended to help consumers and property agents understand the current state of play of the market. The COVID-19 pandemic was a curveball for Thailand’s property market that no one could have predicted.
“It [COVID-19] has directly affected my family as my husband lost his family during COVID-19. Our household income is not the same as before so we have to think and plan more carefully about buying a property”, commented one respondent.
Thais purchasers cited that it is now difficult to view properties
Aside from financial hurdles to secure a property, Thais purchasers cited that it is now difficult to view properties. Their increased concern for personal health and hygiene has exacerbated this further as people are more hesitant about welcoming people into their property and buyers are also more cautious too – a sentiment strongly held amongst Thais under the age of 60.
In turn, there has been a delay in property transactions amongst all age groups, whilst the over 60s stated that they are more cautious around health and hygiene-related issues when choosing a property illustrating the effect the outbreak has had.
Despite uncertainty around house prices being the least important factor amongst consumers, one respondent did state to the contrary, “I’ve delayed my purchase. The property price is declining… You have no idea when the price is going to stop declining”.
This suggests that overall consumers are airing on the side of caution when looking to invest in property, a fact that developers and agents should take heed of.
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