According to data compiled by the Real Estate Information Center (REIC) of Thailand, the number of second-hand residential units for sale in the country dropped significantly in the third quarter of 2022. The REIC attributes this decline, in part, to an increase in second-hand home transfers during this period.
Acting director-general of the REIC, Vichai Viratkapan, noted that “the number of second-hand homes transferred in the third quarter of 2022 increased from the first and second quarters. It was also 15% higher than the third quarter of 2021.”
One potential reason for this surge in home sales is the expiration of two property measures at the end of 2022. These measures included a cut in transfer and mortgage fees, as well as the easing of loan-to-value (LTV) limits. As a result, many homeowners and buyers may have rushed to complete transactions before the end of the year in order to take advantage of these incentives.
Despite the decline in available units, the strong market in the final quarters of 2022 could be a sign of even greater growth in the future. In fact, the REIC predicts that Thailand’s real estate market will experience a major rebound in 2023, making it an excellent investment opportunity for both domestic and foreign buyers. As the country continues to recover from the impacts of the COVID-19 pandemic, the easing of mortgage requirements and the influx of foreign visitors are expected to boost demand for both residential and commercial properties.
While there are certainly challenges such as the still-weak economy and the shortage of migrant workers, the Thai real estate market’s prospects for 2023 are looking bright.
It’s worth noting that the REIC’s data only includes second-hand units offered for sale through major property websites and those owned by financial institutions, asset management firms, and the Legal Department. However, the REIC’s findings are still an indicator of the overall health of the market. As of the end of the third quarter of 2022, second-hand homes offered for sale dropped 3.3% in terms of the number of units to 162,923 and fell by 3.4% in terms of value to 962.2 billion baht compared to the second quarter of the year. The largest number of units were single detached houses, followed by condos and townhouses.
While the strong market in 2022 may have contributed to the decrease in available units, it’s possible that other factors also played a role. For example, the pandemic has had a significant impact on the economy, and this may have led some homeowners to hold on to their properties rather than putting them up for sale. Additionally, the REIC’s data only includes units offered for sale, and it’s possible that there are other units that are being rented out or are not being actively marketed for sale.
Despite the decline in available units, the strong market in the final quarters of 2022 could be a sign of even greater growth in the future. In fact, the REIC predicts that Thailand’s real estate market will experience a major rebound in 2023, making it an excellent investment opportunity for both domestic and foreign buyers. As the country continues to recover from the impacts of the COVID-19 pandemic, the easing of mortgage requirements and the influx of foreign visitors are expected to boost demand for both residential and commercial properties.
For those interested in investing in the Thai real estate market, now may be a good time to start considering options. While there are certainly challenges to investing in the market, such as the still-weak economy and the shortage of migrant workers, the prospects for 2023 are looking bright.
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