Residential market remains fragile while housing prices to increase slightly

[webfact]

 

Thailand’s residential market is still facing several challenges that will prevent it from making a full recovery in the short term. Research indicates that such unfavorable factors as the pandemic and the war in Ukraine have prompted home buyers to delay their purchases.

 

Speaking at a recent virtual press conference on the property outlook, Kamolpat Swaengkit, Country Manager Thailand of DDproperty.com said that the study suggests the housing market will recover slightly in the second half this year, albeit slowly as home buyers have been reluctant to purchase homes because of the economic downturn and inflation since the beginning of 2022.

 

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“In addition, consumers are concerned over economic instability with the ongoing Russia-Ukraine war as well as the rising prices of fuel and construction materials. In short, buyers are reluctant to buy,” Kamolpat added.

 

The University of the Thai Chamber of Commerce’s consumer confidence index fell for four consecutive months to an 8-month low in April amid disruption caused by the COVID-19 pandemic as well as the impact of the Ukraine war.

 

-- © Copyright Thai PBS 2022-05-24

 

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[Pib]

 

 

Quote

...Kamolpat Swaengkit, Country Manager Thailand of DDproperty.com said that the study suggests the housing market will recover slightly in the second half this year, albeit slowly...

Since real estate companies/agents always give very optimistic sales forecast...always find a silver lining in the real estate market (kinda like TAT forecasts for tourism numbers) I would think this forecast when corrected for the optimistic nature of real estate forecasts that the real outlook is "no" recovery this year.  

Edited May 24, 2022 by Pib

[Laughing Gravy]

It wasn't that long ago (a few weeks) with articles saying that the housing market was doing extremely well and house prices were going up. I guess its another 'flip flop', when the truth is never really released, until way after the event.

[Tropicalevo]

I would say that the biggest things stopping people from buying are prices going up, lack of job security and possible unemployment.

[RichardColeman]

1 hour ago, Tropicalevo said:

I would say that the biggest things stopping people from buying are prices going up, lack of job security and possible unemployment.

I think 'worry' about unemployment and income does not effect many thais, they are so in debt with houses, cars, tv's , motorbikes, yearly mobile phones that they are prepared to just walk away from the debt at some point. Every Thai I know - apart from my wife - is in debt. 

[bkk6060]

On February 24, 2020, Bloomberg reported that Markets “Bangkok Has 100,000 Empty Apartments and may Soon have more".

 

Recover how and to what?  This place is way over built and overpriced for the high inventory.

 

Edited May 24, 2022 by bkk6060

[jcmj]

It is still a buyers market and many Thais still have money to spend. Mainly the hi so, but they seem to be looking for houses not the over priced and over abundance of condominiums. Mid to high end houses are still selling. Of course not like they used to be, but those who have money are looking and getting good deals. 

[brendan3150]

1 hour ago, jcmj said:

It is still a buyers market and many Thais still have money to spend. Mainly the hi so, but they seem to be looking for houses not the over priced and over abundance of condominiums. Mid to high end houses are still selling. Of course not like they used to be, but those who have money are looking and getting good deals. 

what kind of discount  from the asking price do you think is likely now jcmj ?

10 % , 20% more ?

[mikebell]

Yet in Banglamung Pattaya, houses are being thrown up all over.  In such a depressed market the only reason must be that the owners have money they daren't put in the bank.

[bert bloggs]

13 minutes ago, mikebell said:

Yet in Banglamung Pattaya, houses are being thrown up all over.  In such a depressed market the only reason must be that the owners have money they daren't put in the bank.

Our sons girlfriend ,sells new build houses , has done for many years ,every estate she has worked on sells out seems Thais much prefer new build ,no" ghosts" to worry about.

[worgeordie]

On 5/24/2022 at 9:44 AM, webfact said:

Research indicates that such unfavorable factors as the pandemic and the war in Ukraine have prompted home buyers to delay their purchases

and a mountain of debt ,

regards Worgeordie

[sanuk711]

36 minutes ago, worgeordie said:

the war in Ukraine have prompted home buyers to delay their purchases

The war in Ukraine makes me not want to buy a house in Issan..............

 

yer , I will have to try get my head around that............

[Pooreye]

1 hour ago, bert bloggs said:

Our sons girlfriend ,sells new build houses , has done for many years ,every estate she has worked on sells out seems Thais much prefer new build ,no" ghosts" to worry about.

Wife and I spent a year looking for a good house in the 1,5-2,5 mill range.

That price range means a fixer-upper, and we didn’t want some ”renovated” house where everything is poorly done just for to sell. I drove around looking almost every day for some three months. Many times there was something wrong with the surroundings or the house itself. If a house dont sell after say six months there is something wrong, or its simply not priced for to sell. Many houses we looked at had been on the market for 1-2 years or more. 

 

The ghost thing is for real,  among some thais. But the biggest obstacle is to get a mortgage on a old house, way easier on a new one. Thai buyers seems happy to buy off plan, and dont think too much about what happens in the backyard or the surroundings.

But, reasonable priced old houses found buyers quite fast, even during the darkest covid times in august last year. It takes time to learn the local market thats for sure

[newnative]

2 hours ago, bert bloggs said:

Our sons girlfriend ,sells new build houses , has done for many years ,every estate she has worked on sells out seems Thais much prefer new build ,no" ghosts" to worry about.

       With Thais buying used properties, or anyone else for that matter, I think it's more a case of the condition of the property, pricing, size and layout, and its location, among other things, that determines whether a Thai would be interested in buying it.  My partner and I have sold nicely renovated used condos in great locations to Thais and we just sold an older house, also in a great location, that we had totally renovated to a Thai buyer.   The house had a number of other Thai buyers that also viewed it, undeterred by 'ghosts'.   Now, had there been a new housing project with similar pricing, land, and house size near the house we bought and renovated, likely many Thai buyers might have gone for a new house vs. an older one--but, likely we might have, also.