The Thai Real Estate Association reported that the real estate market in 2022 will not recover as expected. Despite the existing surge in investment from buyers of luxury housing, this will not help support the real estate market in Thailand and this boom will soon come to naught. For middle- and low-income buyers, new real estate is becoming unaffordable, especially since it has become more difficult to get a loan.
In addition, it was previously expected that the dynamics of housing prices, despite the high cost of building materials, could be adjusted to match the purchasing power of the market. However, the rise in land prices makes this impossible.
The Bank of Thailand increases the rate on loans to individuals and firms, which also affects the increase in real estate prices. Along with inflation, the main factor affecting the cost of living, an increase in the interest rate will also slow down the recovery of the Thai economy and the real estate sector may again be in deep crisis.