Analysts at TMBThanachart bank declare a clear course for recovery in the real estate sector in 2022. This is due to government LTV measures and increased demand for real estate purchases in anticipation that new housing prices will rise in line with higher construction costs due to the Russian-Ukrainian crisis.
This year, the stock market has moved from contraction to growth by 5%, warning entrepreneurs about the need to adjust strategies for the new year to cope with risk factors. After all, household debt remains high, consumers' lifestyle has changed, and construction costs are rising.
TMBThanachart Center for Economic Analysis analyzed the situation in the real estate sector, which in general has been in a downward trend due to COVID-19 for more than 2 years. Both because of the weak purchasing power, and because of the slow pace of construction and delivery of ready-made properties.
As the economy started to improve in the last quarter of 2021, combined with the temporary LTV measures announced by the Bank of Thailand, the industry is trending towards recovery, but has not yet reached the pre-epidemic level of 2019 due to the slow recovery of purchasing power in the country and increased construction costs.
Purchasing power is expected to recover more slowly in the first half of this year due to the collision with inflation. The problem of COVID-19 has not completely disappeared from our lives either, the number of cases is still high.
Based on these factors, entrepreneurs need to prepare strategies for expanding their business and create opportunities in the housing market to increase sales, for example, promotions that allow them to purchase housing in installments, etc. to attract customers. What will give buyers the opportunity to purchase real estate at a reasonable price.