REIC revises housing market forecasts for the next 2 years

REIC revises housing market forecasts for the next 2 years

Real estate sales in Thailand are expected to reach pre-Covid levels in 2023.

The Real Estate Information Center (REIC) has revised its housing market forecasts for next year, with a recovery to pre-Covid levels expected in 2023.

Vichai Viratkapan, acting CEO of REIC, said that the reduction in the loan-to-value ratio (LTV) had been the main incentive for the market since the fourth quarter of this year and in the following years.

"We have revised the forecast for new deliveries to be launched in Greater Bangkok in the fourth quarter from 4,000 units before the LTL is reduced to 20,000 units."

However, the figures for the fourth quarter of 2021 will remain below the five-year quarterly average of 24,000 units.

By the end of the year, the supply of new housing launched in Greater Bangkok will have declined by 35%, compared with 32% in 2020 and 19% in 2019 after the introduction of credit restrictions.

REIC also reviewed sales of new housing units across the country. From an 8% decrease by the end of 2021, the indicator rose to a 0.5% decrease, from 97,103 units to 105,045 units.

The market for newly registered housing units will return to pre-pandemic levels, not in 2027 as previously predicted, but in 2023 due to the weakening of the LTV and the reopening of sectors in the country.

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