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2 weeks ago
On September 11, Prasert Taedullayasatit, President of the Thai Condominium Association, commented that the condominium market has yet to recover due to weak domestic purchasing power, while the foreign buyer market has also started to slow down. This is particularly evident in countries like Myanmar and China, where restrictions on moving money abroad have been imposed. This can be seen from the 3% drop in foreign property ownership transfers in Bangkok and its vicinity during the first half of 2024 compared to the same period in 2023. However, it is expected that foreign ownership transfers will pick up in the second half of this year, as condominium projects from 11 major developers, valued at 86.052 billion baht, are scheduled to be completed in the fourth quarter, the highest value of the year. This compares to 35.686 billion baht in the first quarter, 20.778 billion baht in the second quarter, and 33.235 billion baht in the third quarter.
Prasert added, "Although there is still continuous demand from foreign markets, it will take time, especially with the Chinese market remaining the main group. While foreign ownership transfers dropped by 29% in the second quarter, it was not only due to money transfer issues but also the rapid appreciation of the Thai baht, which caused foreigners to delay property purchases in Thailand over the past 3-4 months. To address the oversupply of condos, the association is calling on the government and the Bank of Thailand to temporarily ease the LTV (loan-to-value) measures for first and second homes and reduce policy interest rates to make it easier for consumers to access credit. In the medium and long term, the association is urging the government to consider expanding the foreign ownership quota for condos to 75%, as Thailand is one of the most promising countries for foreign residents, both for work and retirement."
Prasert also supported the government's investment in entertainment complex projects, viewing them as large-scale initiatives with the potential to stimulate long-term economic growth, similar to the success seen in Singapore. He recommended starting a pilot project at Khlong Toei Port, as it is a prime location to attract foreign investors. If the government successfully implements this, Bangkok could become a key global destination.
Sanit Attayansakul, CEO of Property Perfect Public Company Limited, added that the real estate market is expected to become more active over the next 3-4 months after the government announced clear economic stimulus policies, such as the digital money policy supporting vulnerable groups, despite these being short-term measures. However, the issue of household debt remains a critical problem that the government should address urgently, as it affects purchasing power in the broader business sector, not just real estate. Additionally, Sanit agreed with the proposal to expand the foreign ownership quota for condos to 75% to reduce market oversupply and supported government investment in entertainment complexes to drive long-term economic growth, recommending the Singapore model as a guide and extending development to Bangkok, Pattaya, Phuket, and Chiang Mai.
