Estate Market news in Jan 2022.

January 11, 2022
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In the first week of 2022, the real estate market that many experts are expected to be active this year. may need to be re-evaluated After the outbreak of the Omicron strain affecting foreign transfers, new project developments The confidence of entrepreneurs and consumers.

Foreigners 1. 3 million units for low balance transfer Chinese champion.

Real estate information centre Government Housing Bank Collecting statistics on the ownership of condominiums by foreigners in the province as well as the country Through the statistics of residential ownership transfers during the year 2018 to the present, it was found that the cumulative total of 3 years of condominium ownership transfers was 1,408,431 sq m. Nationwide Continued to decline for the third quarter.

The price levels of condominiums that are popular with foreigners during the first 9 months of 2021 out of a total of 1,755 units are as follows:

  • No. 1, condominiums with prices not exceeding 3 million baht, amount 792 units (45.1%),
  • 2nd place, price range 3.01-5 million baht, 454 units (25.9%)
  • 3rd place, price level 5.01-7.5 million baht, 277 units (15.8%),
  • 4th place, price level more than 10 million baht There were 130 units (7.4%),
  • ranked fifth, condominiums in the price range of 7.51-10 million baht, amounting to 102 units (5.8%).

Looking back to 2018, it was found that the trend was in the same direction. Condos priced at no more than 3 million baht are still popular with most foreigners. With the transfer of condominium ownership throughout the country to the Chinese, the highest number 1, amounting to 17,800 million baht (59.9%) of all foreign ownership transfers.

when comparing the number of units that have been transferred found that the average rate during the outbreak of COVID-19 with the mean before the outbreak The average number of transfer units decreased by 37.5%, the average value dropped to 28.5%.

2. The Year 2022, pinning the development of condos in the location of 3 new electric train lines

Colliers Thailand reveals an overview of the supply of new condominiums launched for sale in the Bangkok area during the past 2021, with a total of 47 projects, 18,678 units, valued the total investment of over 63,356 million baht continued to decline from a year earlier to 3,585 units, representing 16.1% of the development value dropped approximately 7516 million baht or 10.6% from a year earlier due from all new supply in 2021 will remain a market for major operators in the stock market. It was found that it was developed by large operators in the stock exchange, up to 15,534 units, representing 83.2%, with a total investment value of approximately 55,326 million baht, and about 3,144 units of non-market operators, representing 16.8%, with a total investment value of approximately 8,030 million baht. baht,

while the direction of the condominium market in 2022 is expected to return to bustling Operators remain confident that there will be a positive response from buyers. Accelerate the preparation for the launch of new projects It is expected that the new launch supply in 2022 may adjust to about 24,000 units, an increase of about 28.5% from the previous year and will return to positive again. After more than three years of market stagnation, most developers still choose to develop condominium projects in the outer Bangkok area or in areas along the electric train lines that are under construction. especially the MRT Orange Line project Ramkhamhaeng – Lamsalee yellow line train Ladprao and Srinakarin roads and the Pink Line, Ram Inthra Road and Bangna area

3. Developers are confident in the year 65-23, real estate will recover

At the end of 2021, The Bank of Thailand (BOT) announced measures to relax the emission criteria. Temporary housing loan or LTV until December 31, 2022, followed by a measure to reduce transfer fees and mortgage real estate, priced at no more than 3 million baht, to 0.01% until the end of 2022, resulting in a better real estate market. But due to the Omicron strain, there is still a high degree of uncertainty. We will have to keep an eye on each

 Other. Ananda Development Public Company Limited reveals the real estate market in 2022. It is quite difficult to look at the long term. Omicron strain is still a factor of concern for many parties. after the epidemic sample in foreign countries negative impact on the overall economy and affecting the psychology It is expected that the situation is expected to recover better. Return to normal in the second half of 2022.

For the first half of 2022, most operators are in the preparation category. Along with finding partners in related businesses to build strength in maintaining the market

LPN Development Public Company Limited (Public) expects the overall market to grow at a rate of 10-15% after passing the point. This was the lowest in the third quarter of 2021, due to many positive factors, including the Bank of Thailand’s announcement to relax the LTV criteria, the renewal of measures to reduce real estate transfer fees. which is good for confidence and build confidence for consumers

as well as having a policy to continuously stimulate the economy causing the Thai economy to grow From the 4th quarter of 2021 to 2022, it is expected to grow at 4%, which will help stimulate purchasing power in the real estate sector. Especially ready-to-sell products that are available in the market for approximately 7.5 hundred billion baht.

Sansiri Public Company Limited (Public) expects the year 2022, the low-rise housing market will still receive a good response. due to changing consumer behaviour From the assessment of the trends of the Thai economy and the overall real estate market Going back to the period before the outbreak of the cattle in the years 2566 -19 David

Real estate trade association design and construction Chamber of Commerce of Thailand Pointing out the trends in real estate business in 2022 still need to be careful After Thailand faces the epidemic of Omicron covids The severity and severity of the epidemic is unclear. As a result, the government and financial institutions increased their caution in giving credit affecting the group of customers who want to apply for a home loan while foreign customers have not returned.

However, the real estate business has been under pressure from many factors in the past 2 years, especially condominiums. New launches have dropped 40-50%. Work at home behaviour chooses to buy more suburban housing instead of the city. Even back to work or meeting in the city but everyone is familiar with online communication making it unnecessary to have a second home The third is in the city.

While the trend is related to health and the elderly get more attention after a period of delay because it is a trend that is necessary in the long term because the proportion of elderly people in Thailand has increased Including at the global level,

however, the government renewed the measure to reduce the transfer-mortgage fee to 0.01% until 31 Dec. This is a good thing to stimulate the economy. In addition, the Bank of Thailand’s (BOT) easing of LTV measures helped stimulate the real estate market. support the market to move forward

5. Revealing 4 big problems: Developing low-rise housing

Kasikorn Research Center In the first half of 2022, trading is likely to slow down. It is expected that the transfer of ownership of residences in Bangkok and its vicinity in 2022 will amount to 1.68-1.77 hundred thousand units, expanding by 1.8%-7.3% from an expected contraction of approximately 16.1% in 2021. Residents in Bangkok and its vicinities are estimated at 6.3-6.9 thousand units, an increase of approximately 0.0%-9.5% from an expected contraction of approximately 3.5% in 2021 will remain stable at about 2.11-2.23 hundred thousand units, compared to the expected 227 hundred thousand units in 2021 (both completed under construction and those that have already been launched have not yet started construction), especially in the housing segment with prices below 3 million baht per unit which accounts for 55.4%.

New projects launched in 2022 will focus on the middle-up market segment. with high purchasing power especially in low-rise housing groups such as detached houses because it is a real demand group There is a need to buy to live on their own. while condominium projects are likely to return to launch more but still below the level in the pre-Covid period by penetrating more places in the community The price level is about 3 million baht, which is different from the former focusing on the electric train project. However, the

housing development still has important problems. This will affect the development of housing in the future, such as

1) the restructuring of housing that meets the needs of consumers Volume and location in residential development Entrepreneurs must return to focus on the structure of population changes in each area (Demographic Change), such as the birth rate, the actual population living in the area. and the population moving in and out of the area, etc.

2) The behaviour and lifestyle of consumers that have changed during the coronavirus outbreak

3) The trend of working in accommodation (Hybrid Work from Home) and self-employed (Freelance) new products such as online sales.

4) Progress in the development of communication infrastructure between cities. and high-speed rail linking between provinces causing the expansion of urban society and creating new jobs.

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Estate agents with a 7-year of Experience in the Estate market and 32 Year of Experience in Quality Inspection Service.

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