The real estate market in Thailand is continues to show signs of a strong recovery in 2023. Two major developers, Noble and Supalai, are both predicting significant increases in Thai housing prices and announcing plans to make significant investments in building new residential projects. This comes as analysts anticipate strong demand from overseas buyers, particularly from China.
Noble anticipates the Chinese buyer market to fully recover in Q3 of 2023. “The Chinese buyer market, which accounted for 80-85% before the pandemic, dropped to only 25% last year due to China’s lockdown,” according to Frank Leung, co-chief executive of Noble. Noble is optimistic that this market will rebound, with the company targeting 4 billion baht in overseas presales, half of which is expected to come from Chinese buyers.
Supalai also anticipates a strong recovery in the housing market, with the company announcing plans to launch 37 new residential projects in 2023.
The projects will include 17 new projects in Greater Bangkok and 20 projects in the provinces. According to Supalai’s CEO, Mr. Prateep, “We can expand housing development in many provinces nationwide because we have a provincial home buyer insight.” The company plans to expand its luxury low-rise segment with units priced between 10-30 million baht, due to the growth in demand for these types of properties.
The Thai government has also implemented measures to boost the housing market, such as cutting the mortgage fee from 1% to 0.01% and the transfer fee from 2% to 1% for units priced three million baht and lower. This is expected to help buoy housing demand and prices.
Overall, the outlook for the Thai housing market in 2023 is positive, with both Noble and Supalai predicting strong demand and increases in housing prices. The Chinese buyer market is expected to fully recover and join in the increasing attraction of Thailand to and the Thai government’s measures to boost the market are expected to further fuel demand.
Bottom line
The Thai housing market is showing signs of a strong recovery in 2023, with major developers Noble and Supalai predicting significant increases in housing prices. Both companies have announced plans for new residential projects and anticipate strong demand from overseas buyers, particularly from China. The Thai government has also implemented measures to boost the housing market, making it an attractive opportunity for investors.
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