Thailand’s real estate sector to remain depressed until 2024, despite strong predictions

PeteMonday, February 21, 2022Last Updated: Monday, February 21, 2022

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Thailand’s real estate sector to remain depressed until 2024, despite strong predictions

A view of the Bangkok cityscape at night. Photo via Unsplash.

Despite big plans and strong earnings predictions from local real estate developers, Thailand’s real estate market might not even return to pre-pandemic levels until at least 2024. This from the Government Housing Bank.

Factors cited include a slow economic recovery, inflation, and the latest variant of the coronavirus, Omicron, which has depressed local business activity since the middle of December last year.

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The research centre predicted in November that the real estate market will recover by 2023, after relaxing the mortgage regulations to restore a vital sector that accounts for approximately 10% of GDP and employs 2.8 million people.

The Covid-19 pandemic has limited domestic activities, business and Thailand’s property market — which have continued to be suppressed since the Omicron strain appeared late last year, according to the Government Housing Bank’s Real Estate Information Centre.

Government policies and relaxed restrictions are set to encourage growth in a property market that has flattened out. The number of newly developed apartments and houses are likely to increase by 35% this year to 105,000 properties.

Meanwhile, inflation hit a nine month high of 3.2 % in January and demand from international customers is expected to remain low this year due to the pandemic.