Three key questions facing the Thailand property market in 2021 By Cheyenne Hollis
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hile the year hasn’t gotten off to a great start EVF UP B TFDPOE $07*% PVUCSFBL JO 5IBJMBOE NBOZ FYQFSUT CFMJFWF XJMM CF CFUUFS UIBO UIF QBTU NPOUIT 5IF UJNFMJOF GPS XJEFTQSFBE WBDDJOF EJTUSJCVUJPO JO UIF ,JOHEPN SFNBJOT VODMFBS CVU TIPVME CFHJO TPNFUJNF EVSJOH UIF ÙSTU IBMG PG UIF ZFBS 'PS UIF Thailand property market, there is hope of a recovery, BMUIPVHI XBTOmU BT EJTBTUSPVT BT JU DPVME IBWF CFFO Some developers pivoted to new residential segments XIFSF SFBM EFNBOE FYJTUFE BMMPXJOH UIFN UP PGGTFU MPTTFT There was also activity in resort locations like Phuket BT QFPQMF CFHBO SFFYBNJOJOH UIFJS QSJPSJUJFT JO B QPTU pandemic world. Uncertainty will hover over the Thailand QSPQFSUZ NBSLFU JO *U JT JNQPSUBOU UP OPUF UIBU UIJT isn’t negativity. Here are three questions that will need to be answered.
1) When can tourists return? The entire Thai economy is tied to the tourism sector and the sooner international visitors can safely return, the faster the Thailand property market will recover. Unfortunately, OP POF SFBMMZ LOPXT XIFO UIJT XJMM IBQQFO PS XIBU FYBDUMZ it will look like. In December, the Tourism Authority of Thailand (TAT) unveiled plans for a special tourist visa scheme that would allow holders to stay in the country GPS VQ UP EBZT )PMEFST XPVME CF SFRVJSFE UP VOEFSHP B EBZ RVBSBOUJOF VQPO BSSJWBM BOE IBWF QSPPG PG UIFJS long-term accommodation or residence. However, tourism boards in both Phuket and Chiang Mai have complained that very little information about the TAT scheme is available.. Perhaps the best hope for tourism in Thailand comes in the form of a regional travel balloon. This would allow visitors to quarantine in one country and then travel freely elsewhere in the region. A travel balloon could start CFGPSF B XJEFTQSFBE SPMMPVU PG UIF $07*% WBDDJOF providing the tourism sector with a much-needed boost in #FGPSF UIJT DBO IBQQFO NPSF XPSL JT SFRVJSFE UP HFU $07*% VOEFS DPOUSPM
2) Will Bangkok developers learn their lesson?
3) Can anything be done to attract foreign buyers? Developers are hoping the Thai government does something to bring overseas buyers back 8IJMF PWFSTFBT CVZFST IBWFOmU DPNQMFUFMZ FYJUFE UIF Thailand property market, their numbers have been EXJOEMJOH GPS B XIJMF 5ISPVHIPVU EFWFMPQFST VSHFE the government to do something that would allow them to attract more foreign buyers. There was some movement on this in December when the Thailand Privilege Card announced a new scheme UIBU QSPWJEFE PWFSTFBT CVZFST XJUI B ÙWF ZFBS WJTB XIFO CVZJOH 5)# NJMMJPO PS NPSF JO 5IBJMBOE QSPQFSUZ 5IJT was a welcome development, but developers are hoping for the government to step in. The Thailand Development Research Institute urged for a short-term loosening of the foreign ownership quotas in TQFDJÙD MPDBUJPOT UP IFMQ FBTF PWFSTVQQMZ " OVNCFS PG PUIFS JOEVTUSZ ÙHVSFT IBWF DBMMFE GPS TJNJMBS NFBTVSFT but it remains to be seen what, if any, action the Thai government will take.
Many developers in Bangkok moved away from the condominium sector to focus on low-rise housing in 5IF NPWF QBJE EJWJEFOET BT UIFSF XBT SFBM EFNBOE for these properties. A number of home builders were BCMF UP TBWF UIFJS ZFBS UIBOLT UP UIJT TIJGU 4FWFSBM ÙSNT have already announced plans to ramp up efforts in this segment this year. If this story seems familiar, well, it is. 5IF #BOHLPL DPOEP NBSLFU CPPN CFUXFFO BOE FTTFOUJBMMZ QMBZFE PVU JO B TJNJMBS GBTIJPO 4PNF developers found early success, more followed suit and eventually there was a glut of units with many remaining FNQUZ UPEBZ 5IJT XJMM CF GBTDJOBUJOH UP XBUDI JO BT there is a real risk Thai developers haven’t learned their lesson and will oversupply the low-rise housing market in TFBSDI PG TIPSU UFSN QSPÙUT
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Issue 235/7 | FEBRUARY 2021
