Developments in the housing market under the conditions of "Omicron"

Developments in the housing market under the conditions of "Omicron"

The Real Estate Information Centre (REIC) reported that more housing projects would be launched in 2022 than in 2021 to meet the needs of more buyers.

Real estate market trends in 2022 during the pandemic and the new strain "Omicron". How will it work?

Vichai Viratkapan, Inspector General of the State Housing Bank and Acting Director of REIC, stressed that low mortgage interest rates are still a major positive factor in the real estate market. Measures to stimulate the State’s real estate sector, in particular, the reduction of transfer fees and residual mortgage fees on secondary properties, the relaxation of mortgage control measures by the Bank of Thailand (LTV) will increase the number of housing transactions for personal use and investment.

The state and developers continue to hold promotions, sale prices, and gifts to stimulate the market.

Nevertheless, the real estate market is exposed to risk factors from the spread of the Omicron strain: household debt accounts for 90% of GDP, employment conditions and incomes of the population are still low – all of this slows recovery. 

The phenomenon expected in 2022 is that the launches of new projects will be more than in 2021. The focus will be on low-rise buildings, as the demand for them is higher than for apartments.

In case of problematic situations, financial institutions can apply a stricter credit policy. This will affect a group of buyers with low and unstable incomes.

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