The Finance Minister Uttama Savanayana told a seminar in Bangkok yesterday that the government’s stimulus packages were for the ‘grass roots economy’ and the property sector can cope on its own, without any government assistance.
He was speaking at a property seminar hosted by the Krungthep Turakit newspaper yesterday. He said that that the real estate sector could readily adjust to the Bank of Thailand’s loan-to-value (LTV) criteria on mortgage loans that took effect last April.
“The government’s latest economic stimulus packages are aimed at helping revive the grassroots economy, and that should in turn benefit to the property sector.”
The 316 billion baht stimulus package approved by the Cabinet on August 20 focuses on cash handouts for low-income earners and domestic travellers and extends soft loans to drought-afflicted farmers.
The upbeat finance minister also said that, once the US-China trade war is sorted out, the Thai economy will expand at a faster rate.
“The Thai economy continues to expand.”
“Regardless of what happens with the US-China trade talks, GDP growth will reach 3%, as forecast by the National Economic and Social Development Council.”
SOURCE: The NationKeep in contact with The Thaiger by following our Facebook page.
Stricter controls and paperwork putting brakes on residential property market
The honorary president of the Thai Housing Business Association, Atip Bijanonda, is tipping the local residential market may fall by up to 10% this year starved of economic confidence, the global economic slowdown and the loan-to-value limits.
But he also believes the situation is far from the situation leading up to the 1997 economic collapse.
The Greater Bangkok residential market is now valued at 372 billion baht (in 2018). That’s a rise of 29% compared to the year earlier. So the drop this year is off the back of a very successful 2017.
For this year the market has fallen by 5%, according to the Thai Housing Business Association, with the largest declines in Q2, in retaliation to the LTV limits taking on April 1.
Some of Thailand’s major developers are now shelving some projects as the market soaks up a glut of properties constructed over the past two years.
Three property associations – the Housing Business Association, the Thai Condominium Association and the Thai Real Estate Association – are having meetings with the finance minister discussing the current property market.
Topics for discussion are the improvement in property regulation, construction permits, licences and stricter controls over developers and lending. The associations also want to discuss the current delays on Environmental impact assessments (EIAs). They say that since the responsibility for EIAs was handed over to the Bangkok Metropolitan Administration from the Office of Natural Resources and Environmental Policy and Planning in 2016, the process is now taking much longer.
Speaking to the Bangkok Post, Kobsak Pootrakool, deputy secretary-general to the PM for political affairs says that stricter lending criteria and the LTV rules are the main factors obstructing mortgage approvals for homebuyersKeep in contact with The Thaiger by following our Facebook page.
14% of condos around Bangkok are empty – good time to buy
Looking for a condo around Bangkok? Now might the right time to take the plunge with the head of the Appraisal and Estate Agents Foundation saying some areas have between 8-14% vacancy rates, some areas of Bangkok up to 17.5%.
Dr Sophon Pornchokchai made the remarks at a news conference yesterday.
“Adding developer price wars, plus inducements to purchase, this represents a buyers’ market.”
He says the figures relate to condos, single houses, townhouses and other dwellings where less than 15 units of electricity were being used, deeming them to be classified as ‘unoccupied’.
Around Bangkok there are 525,889 such vacant properties.
The top three areas for vacancies were Nonthaburi (north west of the central area) with 335,421 available properties with 45,848 unoccupied or 14%. This percentage was also true of Bang Na (south east of Bangkok) with 231,192 properties, 31,289 unoccupied. Bang Yai – to the far north west of the capital – has 221,492 with 28,016 unoccupied or 13%.
Locations with the lowest unoccupied dwellings are Bang Plee (south east) with 8% unoccupied, Min Buri (north) 9% and Lat Krabang (south east) 9%.
Dr Sophon says that when it comes to condos in Bangkok and the surrounding areas, between 13.5% and 17.5% are unoccupied.
“This glut has prompted a selling war with discounts and deals.”
FazWaz‘s CEO Brennan Campbell says that we’re in part of the buying cycle right now that is definitely in the buyer’s favour.
“Long-term, the Bangkok market continues to show its strength, but there is definitely an enormous range of property to choose from, in almost every location, right now. The current dip in demand is just part of the cycle.”
SOURCE: Daily NewsKeep in contact with The Thaiger by following our Facebook page.
Wyndham adds two more hotels for Phuket’s south
PHOTOS: Artists impressions of the new Wyndham Nai Harn Resort Phuket
Global hotel group Wyndham has announced two more Phuket pipeline hotels. The announcement follows a long list of new developments and openings over the next few years on the island.
First for Wyndham, is a 353 key property named the Wyndham Nai Harn Resort Phuket at the popular southern west-coast beach. It’s scheduled to open late this year.
A second hotel is located in Chalong, with 150 pool villa units and will debut next year. Both properties are developed by the Cissa Group.
The group already has three properties on the island – Wyndham Grand Phuket Kalim Bay (between Kalim and Kamala), the Wyndham Sea Pearl Resort Phuket, overlooking Patong on the Patong Hill road, and Ramada by Wyndham Phuket Deevana Patong, a rebranding of an older hotel.
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