DD Property (DDproperty) Summary of the real estate market in the year 2021 It was a challenging and highly volatile year. Despite the demand for housing But there are still some obstacles from fragile economic conditions and rising household debt.
while housing trends change according to lifestyles New Normal Expect the real estate market this year. 2022 will recover according to the economic condition Operators will focus on draining the outstanding stock. Along with launching new projects into the market to attract buyers for real living. (Real Demand) Consumers still view government assistance measures as an important aid. and is a positive factor that stimulates the real estate market come back to recover again
Kamolpat Sawangkit, Country Manager of DD Property, said: “The key variables of the business sector this year are still from the Covid crisis.-19 affecting the main business sectors of the country including the real estate sector After previously predicting that the year 2021 It will be a year that is likely to recover again. But the volatile situation remains a big obstacle. make the real estate market This year cannot grow as well as it should.
coupled with the fierce price war competition among real estate developers continuously since the year 2020 causing the absorption of purchasing power from consumers already enough Faced with the financial uncertainty from the protracted epidemic, most consumers delayed their purchases. Although this year the government has issued measures that are more conducive to the purchase of real estate.
including the relaxation of housing loan control measures (Loan-to-Value: LTV) of the Bank of Thailand during the past October But such measures are still unable to stimulate growth in the real estate market as consumers are still unconvinced about the coronavirus situation.-19 and not having enough purchasing power from the impact of the epidemic”
COVID-19 cause concern Pulling Thai people to slow down to buy a house
covid epidemic situation-19 Affects financial liquidity and consumer confidence in spending. As a result, the need for strict financial planning in the long run. Consumer opinion survey on real estate market conditions DDproperty’s Thailand Consumer Sentiment Study The last round found that almost 3 in 4 of Thai consumers (71%) There is still demand for housing but chooses to delay the purchase first. 39% Planning to buy a house inside 1-2 year
However, consumers say the main obstacle affecting home buying comes from a lack of income during the coronavirus pandemic.-19 to 66% followed by housing prices (63%) followed by political uncertainty and the bank did not approve the home loan in the same proportion (37%) This reflects that financial problems remain the top barriers for home seekers.
In addition, most consumers (80%) I see that the government has not yet contributed to enabling people in the country to own their homes. by measures to heal the real estate sector The most demanded by the government is to cut interest rates on new home loans and homes that are currently being paid off. (57%) To alleviate the burden of those who want to own their own home amid the continual economic slowdown
take lessons ‘chance – challenge‘ of the property year 64
Overview of the growth of the real estate sector that have not recovered as they should As a result, real estate developers Most of them delayed the opening of new projects. especially condominiums and instead focusing on draining the outstanding stock through a price war to stimulate the purchasing decisions of consumers during this period instead. Therefore, the housing price index in the year 2021 especially in Bangkok Overall, it still declined to 11% from the previous year
In addition, the amount of supply continued to increase due to the backlog in the market coupled with a lower absorption rate. However, the increasing trend in supply was mostly low-rise housing projects with high market demand. The number of single detached houses has increased. 33% from previous year townhouses on the rise 30% The increase in condominiums 11%
In addition to the trend of low-rise housing, it has become popular with changing lifestyles. The trend in housing developments is also spreading in locations outside the central business district of Bangkok. (City Fringe) and suburbs (Outskirts) more because it is a location where low-rise housing can be developed at an affordable price In addition, the positive factor is the expansion of the electric train network that connects to the city center more conveniently.
Information from the Monetary Policy Committee (MP.) It is estimated that the Thai economy has passed its lowest point in the last quarter. 3 year 2021 This is a positive sign that all sectors have been waiting for. It is expected that the Thai economy in 2022 will recover, with the main driving force coming from economic activities and the domestic tourism market which gradually recovered following the relaxation of government control measures. and increased mobilization of vaccinations This will result in the labor market and the purchasing power of consumers tend to improve accordingly.
Keep an eye on the real estate direction of the year 65 Waiting for economic recovery
“expected year 2022 It will be a year of recovery in the Thai real estate market, starting to see positive signs at the end of the year. 2021 But it is expected that the level of real estate prices will not increase much Along with the issuance of campaigns or promotions to attract purchasing power from buyers for real living (Real Demand) and investors who are ready and hoping for long-term returns While there is no sign of oversupply in the market. (Oversupply) or a bubble
The important factor to keep an eye on is progress in controlling the epidemic. Including measures to stimulate the economy and the real estate sector from the government, which will directly affect the direction of growth. However, the outlook for the Thai economy is still fragile and uncertain. Operators and consumers should therefore monitor the epidemic situation. after opening the country and measures closely supported by the government before making a decision
