The condominium market during the second quarter of 2020 hit its lowest point, yet it seems that the market will slowly pick up in the third and fourth quarter of this year (2021). Although the Covid-19 pandemic may not directly affect the industry it has caused severe damage to the overall Thai economy. With the domestic economy already fragile and heavily reliant on tourism and exports, the virus pandemic could cause a contraction in growth and output. This year (2021) has been a sluggish year for the Bangkok condominium market. In fact, the condominium market situation began declining in 2020. Pre-sales last year were affected by more stringent loan-to-value (LTV) rules, together with the global trade war and the appreciation of the baht.
In April 2020, there were no newly launched condominiums. Condo sales dropped sharply due to the slowdown in demand from both domestic and foreign buyers.
Most developers took a wait-and-see approach. Developers with a high proportion of foreign sales will not now have to postpone transfers of units for foreign buyers, especially Chinese buyers, due to easing of travel restrictions. The government has taken several steps to support the economy, ranging from interest rate cuts to relaxation of LTV rules.
The Covid-19 pandemic has prompted dramatically discounted Bangkok real estate opportunities, with Thais and international buyers now plumping for high-end houses and Bangkok condos in trendy neighborhoods like Thong Lor, and properties close to universities for organic growth. With Chinese and Hong Kong buyers typically accounting for as much as 49 per cent of units in new projects, their exodus this year due to travel restrictions has exacerbated the situation. Yet every down cycle presents opportunity, buyers who have committed to deals during the pandemic have benefited from the high discounts and promotions offered in many projects.
Crisis creates opportunities, so for those interested in renting or buying property in Thailand, the market will remain in their favor.