According to developers, the economic growth, reviving buying capacity, and unchanged house prices will incentivize the growth of the residential property market in the fourth quarter, despite inflation and higher loan interest rates offered by banks.
President of the Thai Condominiums Association said they were not concerned about higher interest rates, as there have been many positive drivers affecting the real estate market throughout the year.
The economy is ramping up and the buying capacity is rebounding after the tourist flow to the country revived and the services resumed normal operation.
The impact of these positive drivers is stronger than that of the existing negative stimuli.
Some buyers of residential property couldn’t afford to purchase a low-rise house because prices kept growing due to the land value.
In 2020 – 2021, the cost of land for low-rise residential construction was growing by approximately 20% per year. As a result, prices of low-rise houses were increasing by 8 – 10% per year.
President of the Housing Business Association declared that the fourth quarter will be a good time for house buyers to make a decision quicker, as real estate prices are growing fast due to a rapid surge of land prices.
President of the Thai Real Estate Association said that the demand for housing in the medium-price segment showed signs of recovery due to tax preferences provided by the government, as well as promo campaigns and discounts offered by developers.
The demand for housing will grow in the fourth quarter as economic expectations improve. Inflation and growing construction expenses do affect the housing value, but many developers froze their prices to attract buyers.