Latest information fromDDproperty Thailand Property Market Index report The Bangkok housing price index was revealed. It dropped to 197 points from 201 points, or a 2% drop from the previous quarter. It is the lowest price index in 14 quarters (since Q2 2017).
After having a tendency to recover during the lock-down period from the outbreak of the first round, the real estate price trend And the supply will continue to decline from the fourth quarter of last year and not yet increased in the first half. Hope for a vaccine against COVID-19 And additional remedial measures from the government to stimulate the property market Come back to recover faster
Khun Kamon Phattharawangkij, Country Manager of DD Property Said:The Monetary Policy Committee (MPC) maintained the policy interest rate at 0.50 percent per year. To support the economic recovery that is still highly uncertain. This was mainly due to the lower number of tourists expected. And uncertainty from the new coronavirus epidemic, which in addition to directly affecting the economic recovery It also affects the growth in the property market fairly, with the Thai economy expected in 2021 to recover 3.2%.
Combined with the challenges of a long-lost foreign purchasing power And political instability These factors may make the property market Thailand recovered more slowly than previously expected to recover in the second half of this year. As seen from the latest DDproperty Thailand Property Market Index report found that the epidemic The new wave has resulted in the trend of real estate prices. It continued to decline from the fourth quarter of last year and is expected to not increase in the first half of 2021.
The supply index is also likely to decline. This is because entrepreneurs have urged to release outstanding stocks and delay the launch of new projects during this period. While consumer demand has been largely absorbed by the recent fierce price wars. As a result, the growth in the market at the beginning of this year is not as vibrant as it should be.
This year, the price war may not be the main driver of the market recovery. He sees that the clarity of the COVID-19 vaccination in Thailand and the government-directed remedial measures will be a key factor in accelerating the recovery in the property market.
Although the government has released measures to reduce the tax on land and buildings. And reduce property transfer fees To mitigate the impact in this cycle But it is expected that such measures will not stimulate much of the consumer’s demand. Because the ceiling of the measure is still limited to buying houses and condos. New from real estate operators At a price not exceeding 3 million baht only
From visitor information on the website DDproperty.com Across the country, in the past 6 months, nearly three quarters (74%) of consumers (74%) paid attention to the announcement of buying-selling-renting homes at a price level not exceeding 5 million baht. Property Price level not more than 3 million baht has 55%
This reflects the trend of purchasing demand of consumers (Demand) looking for housing in the price level not more than 5 million baht, although there may be a need to delay spending first. But it is another opportunity in the market that should not be overlooked. If the government wants to stimulate the real estate sector It is therefore wise to expand the ceiling of the measure to reduce the transfer fee – the mortgage fee to be higher than before. To help bring new purchasing power into the market It also helps absorb outstanding projects that cost more than 3 million baht of property developers. In the past to be reduced
Return of COVID-19 Shaking the housing market direction
The latest issue of DDproperty Thailand Property Market Index reveals insights and directions on the property market. Thailand after COVID-19 epidemic A new wave suddenly As a result, the growth of the housing market and consumer purchasing decisions slowed down.
- Real estate prices decrease, low-rise housing remains stable. As consumers become more careful in their spending Resulting in real estate operators Need to use price war to help accelerate the stock outstanding continuously. To speed up purchasing decisions at this time Property Price Index The last quarter there was a downward trend in all housing styles. Especially the condo type The price index was down 2% qoq and fell 5% over the year (YoY). The horizontal benefited from the consumer turning more attention to horizontal projects after having to work from home during the epidemic Causing townhouse price index to remain stable While single detached houses, the price index dropped 2% qoq But it is considered an increase of 10% in 2 years, reflecting the opportunity from the real demand group that still exists in the market (Real Demand).
- The supply continues to decline, the condo continues to hold the stock hold champion. In addition to the outbreak. The new wave will have a direct impact on buyer’s spending planning. It also results in real estate entrepreneurs, investors and consumers who want to sell properties. That are available now choose to delay the sale first as well A recent report from DD Property found that the supply index fell to 363 points from 385 points, or a 6% drop from the previous quarter. And it is expected that it will continue for at least another quarter. In the past, the condo market Considered to be affected the most until there are many outstanding products in the market. Even this quarter, the supply of condos Will decline 7% from the previous quarter, but when looking at the overall picture, the condo Still accounts for the most 88% of the total supply in Bangkok. While the supply index for single-family houses accounted for 7% and townhouses only 5%.
- Rental demand is strong in many locations. Contrary to the amount of supply Recent reports found that Bangkok location With the biggest drop in supply in the quarter Most of them are located in the heart of the city, such as Wattana, Khlong Toei and Sathorn, although trading in the property market. Will still tend to slow down But if looking in the property angle For rent, it was found that there is still quite a chance of growth. The consumer still has an increasing demand for housing. Especially in Klong Toey district with growth in many locations, namely Klong Toey, increased 17%, followed by Phrakhanong Subdistrict And Khlong Tan District (an increase of 12% and 11%, respectively). In the Wattana District, they received the same attention.
By consumers interested in housing rental In Khlong Toei Nuea district increased 15%, followed by Khlong Tan Nuea. And Phra Khanong Nuea district (up 10% and 9%, respectively), reflecting the trend of the rental housing market that is likely to grow in the future. Counter to the decline in supply in some locations It is an interesting opportunity for investors with real estate. In such location That may choose to delay the sale first to wait for a chance to generate better returns And change to rent instead at this time To catch the needs of consumers that are available in the market
