What to expect from the real estate market in Thailand in 2023?

What to expect from the real estate market in Thailand in 2023?

There are several problems in the country's economy that affect the situation in the real estate market, which will continue in 2023. The market is still in a precarious position and has not fully recovered.

The resumption of measures to ease the burden of public housing costs for low-income citizens is expected. It has not yet been announced whether the transfer of ownership benefits and mortgage fee benefits will be extended. It is tentatively assumed that the measures will be in effect until December 31, 2022.

It is estimated that for every million baht, home buyers saved about 2.98% of expenses due to these measures (or 29,800 baht).

The tendency to increase interest rates in 2023, pressure on the purchasing power of housing, an increase in business costs — this affects housing prices and the liquidity of entrepreneurs. The oversupply in the market is still high. It is expected that the accumulated amount of housing for sale in Bangkok and its surroundings at the end of 2022 should be higher than in the first half of the year, and will amount to about 2.07 thousand units.

Especially in the price range of 2-5 million baht (which is about 57% of the amount of housing for sale), although the price level corresponds to the purchasing power of most residents of the country. But against the backdrop of a recovery in demand, time is still needed.

In 2023, the launch of new housing projects in Bangkok and its environs may decrease to 89-96 thousand units, or by 6.3% compared to the acceleration in 2022.

It is expected that the launch of condominiums will slow down due to the large number of launches in 2022. New projects will be concentrated in the center of Bangkok and in remote areas, where new electric train lines will open.

Subscribe to newsletter