Experts predict that major provinces in Thailand are bound to have a promising future
In 2022-2023, the housing sector of Thailand in the territory of 6 major provinces will increase due to the fact that developers will reduce the prices of new properties. The evidence to this prediction is the results of research conducted by Krungsri Research. According to experts, the most favourable prospects are awaiting Chiang Mai, Phuket, Rayong, Khon Kaen, Chon Buri and Nakhon Ratchasima.
At the moment developers are engaged in the construction of about 100 thousand residential properties. Yet there are no buyers who are willing to purchase them. As a result, the number of new projects launched this year won’t exceed the numbers of the previous year.
In addition to reducing prices, developers give a lot of attention to the projects with low-rise buildings. Such projects will be targeted at buyers who work remotely from home. Besides, this type of property is supposed to become affordable for most local residents.
Experts predict that the construction of new residential properties this year will decrease by 35.7%. This is due to the fact that the amount of applications submitted for obtaining construction rights for the period from January to October 2020 decreased by 54.7%.
In general, the Thai housing sector expects the following prospects in the coming years:
- According to the forecasts of the research company, the country’s housing sector will either recover completely or shrink slightly this year compared to 2020. The outbreak of covid-19, which continues to adversely affect the economy, may decelerate the rates of construction.
- Thailand’s economic performance is expected to increase by an average of 3-4% in 2021 (FYI, last year it dropped by 6.1%). Investments in local infrastructure, primarily in The Eastern Economic Corridor, should, in turn, have a positive effect. Such initiatives contribute to the rapid recovery of real estate markets in Rayong and Chonburi compared to other provinces.
- According to experts, the tourism industry in Thailand will gradually stabilize as business travellers and citizens from countries with low infection rates will resume their trips to Thailand. Thus, the number of tourists will have reached 40 million by 2024 (the same number as it was in 2019), but only if the country’s borders open in the near future.