It is expected that in 2023, the real estate market will be influenced by many factors, such as an increase in the minimum wage by 5-8%, effective from October 1, an increase in the cost of building materials, which increased by 5-6% and higher, an increase in interest rates, an increase in land prices after the revaluation of land on January 1, 2023 (by 8-10%).
House prices in 2023 are likely to increase by 5-10% depending on location.
If the Bank of Thailand (BOT) does not extend the measures to weaken LTV, this will affect the purchasing power in the housing sector worth less than 10 million baht purchased under the second loan agreement, and housing worth more than 10 million baht under the first loan agreement. The first installment will be set at 10-20% of the cost of housing.
The cancellation of the extension of LTV mitigation measures will directly affect purchasing power, which will affect the market as a group of investors. But this will not affect the group buying the first house at a price no higher than 10 million baht.