Ratings organisation TRIS Rating is expecting Thailand’s residential property market to recover in the second half of 2014.
The agency is basing its prediction of a recovery on rising consumer confidence after concerns over political tension have been abated. However, it noted a relatively high level of household debt remains a major concern.
Industry-wide sales in 2014 are expected to be around 20 percent lower than in 2013 due to the relatively high base of sales figures in 2013 and the sharp decline in sales in the first half of 2014, it noted.
The number of condominium presales during the first half of 2014 dropped sharply by 47 percent year-on-year. Demand for condominiums comes from homebuyers, investors and speculators but the last two groups are the most sensitive to market conditions, TRIS said in its statement.
The drop in demand caused developers to take a wait-and-see strategy, and the number of new condominium units launched during the first half of 2014 dropped by almost 35 percent year-on-year.
It noted that in contrast, demand for low-rise housing units, which are mostly real demand, increased by 5 percent year-on-year.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
