While Thailand’s property sector is unlikely to see the growth some developers had hoped for, media outlets are reporting that the property market should remain stable with growth expected for Greater Bangkok and struggles continuing for most locations outside of the capital.
Deputy Finance Minister Wisudhi Srisuphan told reporters that the property market will rebound to reach a balanced point after recording growth during the first four months of 2016. The property tax incentives that expired in April played a big role in this recovery.
“Public spending of around THB2 trillion in the remainder of the year will help drive the overall economy,” Wisudhi noted. “The property market will have a gradual recovery with growth of five percent. Developers have a strategy to survive in a stagnant economy.”
The property market showed positive signs in the first quarter and grew by eight percent in Greater Bangkok and 11 percent in six other provinces, according to Prasert Taedullayasatit, president of the Thai Condominium Association.
“In Greater Bangkok, the market will keep growing as it will be driven by new residential supply being launched until the end of the year and new mass transit lines including the Purple Line, which will start running, and many lines for which the government will open bidding,” Prasert explained to the Bangkok Post. He also believes that THB250 billion in new residential supply will come from Thailand’s ten largest developers during the remainder of the year.
Condominiums will continue to be an attractive investment as they are driven by mass transit lines but investors or buyers need to conduct a site survey and consider several factors before making a decision, Surachet Kongcheep, associate director of property consultant Colliers International Thailand, explained.
“For investors and homebuyers, it’s a good time to make a decision as developers are willing to offer attractive campaigns and discounts,” Surachet pointed out. “But it’s not the right time for short-term speculators as the economy is still sluggish.”
