Thai real estate faces perfect storm next year
Thailand‘s pivotal real estate sector, a key economic force, anticipates a demanding 2024 due to substantial dependence on supply chains and various internal and external risks.
Business entities foresee the need to adapt strategies, as the government prolongs the property transfer and mortgage registration fee reduction for an additional year to invigorate the market.
Wongsakorn Prasitwipat, the managing director of Property Perfect Plc, reveals Thailand’s real estate industry’s survival game plan.
Prasitwipat paints a picture of caution, stating that the real estate market next year will be in wait and see mode.
“Cash flow, dwindling land stocks, and precise project development will be our shield against the looming risks.”
Despite the gloom, there’s a glimmer of hope in the form of government measures.
“The fee reduction for property transfer and mortgage registration will be extended for another year, injecting a much-needed adrenaline shot into the market.”
In the face of challenges, Prasitwipat unveils the battle plan for 2024.
“Condominium projects are high-risk ventures. Our focus will shift to flat projects, bolstered by international partnerships to weather the storm.”
Cautioning against the pitfalls of debentures, Prasitwipat stresses that monitoring debentures is crucial; past redemption issues have caused a ripple effect, hindering investment flow and economic circulation, reported The Nation.
Cash flow takes center stage in the real estate theatre.
“Efficient cash flow management is non-negotiable, potential hurdles in fundraising, especially through equity, demand a meticulous approach. Stricter credit release regulations may make securing project loans a Herculean task.
“Don’t hoard inventory or land; align project development with customer needs for successful sales. If land is acquired, development must kick off immediately. No more sitting on vast expanses waiting for the perfect moment.”
In a seismic shift post-Covid, Prasitwipat reveals a departure from tradition.
“Caution now rules the land acquisitions game. Rather than stockpiling for future development, the focus is on selling to partners for immediate development.”
