Coronavirus: Thailand’s condominium sector headed for 10-year low as Chinese buyers disappear amid outbreak
- The postponement of new launches and discounts on unsold units have hit the real estate sector hard, continuing a downward trend from last year
- While Chinese buyers have tailed off after travel restrictions imposed by Beijing, experts say they remain active online and are still interested in Thai property
According to Phattarachai Taweewong, researcher at global real estate services firm Colliers International, this downward trend continued from last year when the Thai real estate sector was affected by a stronger baht, weaker yuan, the slowing Chinese economy and underperforming Thai economy amid a global slowdown.
“This is a very difficult time. Some developers have postponed their launches indefinitely because it is difficult to estimate how long the outbreak would last,” he said. “Sales activities and campaigns have stopped. Sales offices have also seen fewer walk-in customers. In the first quarter of 2020, we expect condominium sales in Thailand to be below 35 per cent, which is the lowest in 10 years.”
“Sales activities and campaigns have stopped. Sales offices have also seen fewer walk-in customers. In the first quarter of 2020, we expect condominium sales in Thailand to be below 35 per cent [for new units launched], which is the lowest in 10 years.”
Sales for new units are usually between 50 per cent and 55 per cent each quarter, Phattarachai added.
The real estate sector accounts for 6 per cent of Thailand’s GDP, according to economic think tank Krungsri Research. Thai law stipulates that non-Thais may only legally own condominiums, but no more than 49 per cent of a building’s total saleable area.