Thailand’s Agency for Real Estate Affairs Company (AREA) has predicted that property sales figures will drop by up to 40 percent if the current political situation continues – with this news coming prior to yesterday’s introduction of a State of Emergency in Bangkok and its suburbs.
According to the Public Relations Department of the Royal Thai Government, The Thai Real Estate Research and Assessment Center of AREA said that any prolonged political situation could hamper the real estate sector and lead to a significant shrink in sales compared to last year. The ongoing anti-government protests have reportedly shaken home seekers’ confidence and, in turn, affected their buying decisions.
For the time being, the Center suggested housing developers to delay their project openings to avoid impacts from the dwindling confidence. According to statistics, fewer openings have been seen since December last year, with only 30 new housing projects per month compared to the usual figure of between 40 and 50.
During the first half of this year, it is expected that the number of openings will decrease even further, possibly to 25 projects per month. A notable contributor to the drop is the government’s THB2.2 trillion infrastructure overhaul plan which has been delayed after the House dissolution.
This has resulted in many developers opting to delay their housing projects along the planned transport routes as result.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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