DDproperty looks at the real estate market in 5 major cities in Thailand The interest in buying from foreigners increased everywhere. After the state announced the opening of the city and amending the law on foreign ownership Ready to leave the government to understand the new law and the impact on the economy on the people more than
DDproperty, Thailand’s real estate marketplace website, released the article “Keep an eye on real estate in big cities, ready to accept foreign buying power after opening the country or not” about the plan to open the country in November 1 is the hope of restoring economic growth in the country. Data from the Kasikorn Research Center is expected Opening the country will increase the number of foreign tourists in the last two months of this year by about 64% compared to the period without measures.
It will generate income at least 13.5 billion baht, which will benefit the recovery of various business sectors in the country, especially the tourism sector. While the real estate sector that has been affected by purchasing power has slowed down for a long time. The opening of the country is therefore an opportunity to revive the housing market to be active as well.
This is consistent with the information from Mr. Athip Phichanon, Vice Chairman of the Board of Trade of Thailand. And the chairman of the trade association promotion and development committee revealed that Chinese investors accounted for more than 50 percent of foreign investors who buy real estate. In Thailand that has not yet been transferred And some have to leave the transfer because they can’t travel to do various transactions, totaling about 50 billion baht.
Therefore, the policy of opening the country and amending the draft law on property ownership And new land for foreigners is therefore an important factor that plays a role in driving economic growth and the Thai real estate market again.
Information about visitors to the website DDproperty.com found that during the 8 months of the year 64 there was a search for real estate information. in Thailand from abroad increased by 31% compared to the same period last year. This reflects quite a bit of interest from foreigners in real estate in Thailand, in line with data from China’s largest real estate website Anjuke, which reveals that Thailand ranks second (21%) among Chinese countries. Property Search The most in the first half of 64, after Japan (22%), followed by the United States. and Malaysia in the same proportion (12%).
The main factor that attracts Chinese attention comes from the value of the rental return of real estate. In Thailand, which is about 5-10% higher than investment in China, which gives a return of about 2%. In addition, Chinese are considered a group of real estate investors. potential for Thailand As can be seen from the statistics on foreign ownership of condominium units in the country as a whole of the Real Estate Information Center (REIC) reveals that Chinese buyers take the first place, followed by Russia. and United Kingdom
The provinces with the highest area for transferring condominium ownership by foreigners are Bangkok 49.4%, Chonburi 30.2%, Chiang Mai 7.1%, and Phuket 4.9%, which are major cities with potential and tourism advantages.
In terms of insights, update the Thai housing market in 5 major provinces that are important destinations for foreign tourists, namely Bangkok, Phuket, Chiang Mai, Pattaya City, Chonburi Province. and Hua Hin District Prachuap Khiri Khan Province and reveals the latest purchase/rental demand from the website visitor information DDproperty.com across the country in September reflecting the growth direction of the real estate market Along with the trend of consumer demand for housing that should not be overlooked.
epidemic long since the beginning of the year make Bangkok become the most restrictive and strict area (Dark red area) As a result, the trend of housing price index in Bangkok in the third quarter decreased by 2% from the previous quarter, as a result of the continued sluggish economy. As a result, consumers postpone their purchases. They also lack purchasing power from foreigners who cannot enter Thailand.
The supply index rose 7% from the previous quarter. This reflects that the absorption rate has not returned as it should. In September, it was found that an increase of 10% from the previous month. This reflects the demand for housing in the capital that has started to return after the epidemic situation has eased, as well as continually attractive promotions from property developers. Meanwhile, rental interest also rose 2% from the previous month.
It is considered an important tourist destination in Thailand where almost every business in the province has been affected by the COVID-19 epidemic. all together As a result, the housing market in Phuket has slowed down in line with consumer purchasing power. The price index trend in Phuket fell 22% qoq. while compared to the previous two years when the epidemic The price index fell 6%, while the supply index fell 16% from the previous quarter.
However, after the opening of the project “Phuket Sandbox” has received good feedback and has a continuous improvement trend. Help restore consumer confidence in spending. As a result, interest in buying homes in September increased by 14% from the previous month. while rental interest increased by 29%.
Even though the epidemic The latest wave will cause the tourism sector and Chiang Mai’s economy to stagnate since the beginning of the year. However, the property market in Chiang Mai continues to grow. This can be seen from the trend of the housing price index that increased 1% from the previous quarter. Compared to the pre-epidemic period in the previous two years, the price index rose 9%, while the supply index rose 15% from the previous quarter. Consumer demand started to show positive signs, with interest in housing up 11% in September, as opposed to a 11% drop in rental interest from the previous month. This is due to the fact that housing prices are reasonable and worthwhile. therefore attracting consumers to decide to buy instead of renting
With the highlight of the location that is not far from the capital. This makes Pattaya a tourist destination that consumers buy as their second home. or investors interested in buying real estate for rent Even in the past, the overall economy is sluggish. As a result, the real estate market Affected as well It found that the housing price index in Pattaya fell 7% from the previous quarter, down 47% compared to the previous two years when there was no epidemic in Thailand.
While the absorption rate has not returned to normal. This was evident from the market supply index that rose 52% qoq. However, the Pattaya housing market continued to show positive signs of buying interest in September that rose 22% yoy. Even though rental interest has dropped by 25%.
epidemic situation As a result, the growth of the business sector in the tourist city has stalled as well. Especially in the real estate market, during the third quarter of this year, the trend of housing price index in Hua Hin dropped 24% qoq, down 64% compared to 2 years before the spread. epidemic
while the supply index fell 18% qoq. reflecting the adjustment of property developers in areas that delay the launch of new projects to wait for the purchasing power of consumers to return, however, when the epidemic situation Going in a better direction, the real estate market has also benefited. It found that interest in buying homes in September increased 18% from the previous month. The interest in renting dropped 38%.
Purchasing power from foreigners is a key influence in boosting Thailand’s economic growth. The government itself has tried to come up with measures/policy to help attract more foreign purchasing power to invest in the real estate sector.
However, the latest edition of the DDproperty’s Thailand Consumer Sentiment Study reveals how Thai consumers view the property ownership bill. and the new foreign land plot, found that 26% of consumers agree and 24% disagree. Growth of the real estate market and the Thai economy as a whole, while 62% of the opposing parties Because of fears that this bill will increase the price of land and real estate in Thailand, which will directly affect Thai people who want to have a home.
Therefore, amendments to the draft law on property ownership And the new foreign land, it is important that the government should study the impact, both advantages and disadvantages in all aspects. ready to accelerate understanding and build confidence with the people To push this policy to benefit the national economy and be effective in long-term management.