Property Perfect exec sees boost in property market within a year

[snoop1130]

Property Perfect exec sees boost in property market within a year

By THE NATION

 

Chainid Adhyanasakul

 

Chainid Adhyanasakul, chief executive director of Property Perfect, said recently that the main factors bringing down the property demand this year are the global economic slowdown and domestic debt, though the loan to value (LTV) measure is helping the market grow sustainably.

 

As for the state of the local property market in the last quarter, Chainid said it will pick up after the drop in demand over the last three quarters caused by an absence of Chinese customers affected by the US-China trade ware and weaker yuan. 

 

“There is still an excess of supply and at lease one year is required to bring the property sector up to the right level,” he said. 

 

One way of cutting down on this excess of supply is by completing the construction of new railway systems, such as the Red Line, as soon as possible so people will be encouraged to move out of crowded areas like Rangsit and find new accommodation on the other side of the city. 

 

“However, the LTV measure is helping the property market grow gradually,” the chief executive director added.

 

Another worrying factor that has brought the sale of properties down is the rise in Thailand’s domestic debt, especially in the automobile sector which is not controlled by the LTV measure. 

 

“Once the US-China trade war ends or the global situation improves, Thailand’s economy will move in a better direction net year,” Chainid said. “However, high public transportation fares are still a problem, as it urges people to buy cars, which adds to their existing debt and affects property loans at the same time.” 

 

Next year, the positive factor for the property market will be the new town-planning law and a nearly finished railway system, which will draw new investment.

 

Source: https://www.nationthailand.com/news/30377169

 

-- © Copyright The Nation Thailand 2019-10-07

Follow Thaivisa on LINE for breaking Thailand news and visa info

[Airalee]

A note to potential condo purchasers...

 

If you’re not embarrassed by your offer, it’s not low enough.

[tjo o tjim]

Optimism springs eternal from this one!  My guess is there is about 3 years before things really show an up trend (relative to today).

[Destiny1990]

The only prices that are go up are each time a new project comes to the market after that those prices fall back year after year.

[RichardColeman]

Guess he just bought a new 'Sales Amulet'

[VocalNeal]

Well he has to talk it up. He can hardly talk it down. 

Best would have been say nothing.

[baansgr]

SQM prices increasing yet resale values have plummeted. Properties on market for less than 10 years ago...you can now buy a 32 Sqm condo in Jomtien for under 700k, 2011 the same were going for 1.5 mil....maybe BKK will hold up better but the loses are already relevant.

[thaiowl]

Recently, Property Perfect said the market was the "worst in a decade"

https://www.nationthailand.com/news/30376987.

So now they're talking the market up!

Edited October 8, 2019 by thaiowl

[hotchilli]

Optimistic marketing.

[andytime]

A case of oversupply, overpricing and different market dynamics (Thailand benefitted disproportionately under globalization and now being unwound).  Overburdened, reduced welfare payments in the west and immigration and currency dynamics here will see overseas investors look for a better and more welcoming deal than Thailand.  The locals have already borrowed on the kitchen sink so some headwinds there as well one suspects.

 

Of course that can all change if Thailand becomes a sporting hub and wins the next football, rugby and cricket world cups, superbowl and the rights to host the summer and winter Olympics.... 

[natway09]

Nothing like banging your own drum.

Last month a property exec said lowest price per M2 in about 2 years from now