Thailand’s property market is set to return to the pre-pandemic level by the end of 2023, sooner than previously forecasted, according to reports. The return to normalcy will be attributed to housing loan regulations and a reopening to more foreign visitors.
Last month, the central bank of Thailand relaxed mortgage regulations to help revive the property sector in the country, which contributes to around 10 percent of the country’s GDP.
Vichai Viratkapan, acting chief of Real Estate Information Centre told the media, “The easing of mortgages and the country’s reopening will make the real estate business active again.”
“We revised up a prediction on new supply being launched in Greater Bangkok in the fourth quarter from merely 4,000 units before the LTV relaxation to 20,000 units. LTV has a great impact on market sentiment.”
However, in the fourth quarter of 2021, the property market in Thailand is expected to remain below a five-year quarterly average of 24,000 units.
In 2022, new sales across Thailand are expected to grow at 21.4 percent to 127,552 units, with an increase in value of 18.6 percent to 519.7 billion baht, up from earlier forecast increases of 19.5 percent and 16.5 percent, respectively.
“Our predictions did not include foreign demand as many economic analysts expected the number of foreign tourists and foreigners to remain low in 2022-23. The proportion of foreign buyers in the Thai housing market was also only 10 percent, which was not significant,” Mr Vichai added.