Thailand’s condominium market risks to leap into a downfall
Condominium sales have significantly dropped since their customers’ financial status has strongly crashed during the coronavirus outbreak, stated Atip Pichanon, Chairman of the Board of Directors of the Real Estate Design and Construction Trade Association of The Chamber of Commerce of Thailand.
Atip told the Associated Press today that four groups of regular real estate customers had lost their interests to invest their money on buying a property during the Covid-19 pandemics.
The chairman said: “60% of buyers were those who bought for their own residence, while 15% were those who bought for rental purposes and another 15% were those who bought for speculation, and the other 10% were foreign buyers. All of them were highly affected by the Covid-19 outbreak and government restriction measures. Foreign customers are significantly affected by current border closure and restrictions.”
The number of bank loan rejections, which represents applicants’ insufficient credit scores, also rose above average. It has reportedly doubled to 40% from 20% last year.
Atip also suggested the government to accelerate economic growth and opportunity in order to allow the real estate market to recover.
“The Thai Government should come up with a policy that accelerates the economy to build confidence and economic stability among the people, including the use of tax to benefit their people as much as possible. That way would make the real estate and other markets to gradually recover and make a circular flow of the country’s economy.”
Written by The Pattaya News Team.