BANGKOK (NNT) - The Thai economic slowdown in accord with the global economic situation has affected people’s business confidence resulting in a sluggish overall housing market in the first half of the year. In Bangkok and its vicinity, more than one hundred and fifty thousand units remain unsold. Property sales are expected to shrink 5-7 percent this year.

The government is being asked to take measures to stimulate purchasing power.
Mr Wichai Wiratkaphan, Government Housing Bank (GHB) Inspector and acting director of the Real Estate Information Center (REIC), has asked the government to stimulate buyer interest by trimming transfer fees on properties. In the first half of 2019, property sales continued to decline. If a property stimulus measure is not implemented, the tepid property market will continue throughout the second half, resulting in a 5-7 percent contraction this year, he said.

The malaise is set to continue into 2020 with a further five percent continuous contraction. This is mainly due to the domestic and global economic slowdown that makes people less confident to take on long-term debt.

The Bank of Thailand’s measures to oversee second house purchases has resulted in a decrease in the number of investment buyers by 20-30 percent and the high value baht has reduced the purchasing power of foreigners in the residential market.

An overview of residential projects in Bangkok and its vicinity, in the first half of 2019, reveals more unsold projects compared to the same period last year due to a decrease in the purchase of all types of housing especially townhouses. Total unsold properties amounted to 152,149 units in 1,670 projects, with a combined value of 669.67 billion baht, up by 11.8 percent on the same period last year.

National News Bureau Of Thailand