For 2023, loan rejection rates are expected to rise by 60-65% beyond credit approval, according to Prapansak Rakchaiyawan, the managing director of LWS Wisdom and Solution (LWS), a real estate research and development company in the LPN group.
Risk factors will have an impact on the real estate sector in 2024, including previously noted fluctuations in the global economy and the Thai economy. Prapansak notes a further four risk factors indicated by the company’s research:
1. Interest rates: Tending to remain at a high level, the rates will have a direct impact on the financial costs of real estate developers and home buyers causing the costs of project development and housing purchases to increase.
2. Minimum wage increase: If the new government’s policy to increase wages to a minimum of 400 baht per day comes into effect in 2024, it would directly affect the operating costs…
