Mr. Frank Khan, Executive Director and Head of Residential, Knight Frank Thailand said, “Due to ongoing Covid-19 transmissions, most developers face challenges in reducing the amounts of unsold units. They have been offering attractive promotions and high discounts on their completed products. Any new project launches planned for 2020 have been postponed to the next years.”
He continued, “Investor sentiment seems to be retarded by local political issues and the global economic slowdown. The rallies in Bangkok affect uncertainty on the property market just over a short period of time. However, the rallies are hardly the main reason that causes fluctuation in the market, which is more influenced by economics and the Covid-19 outbreak. Still, most of our projects have showed up to a 50% decline on their selling rates, while in areas where the protesters have gathered, the number of our walk-in customers dropped and appointments were cancelled.
At any rate, Thai investors are able to make a quick adjustment to the unpredicted situation, taking a wait-and-see approach. They are always looking for an opportunity to invest with more affordable property prices, and they know very well that the property market is experiencing a slowdown in all segments, and that developers must cut down their selling prices or offer appealing promotions in new launches and resale units. As the old saying “When there is blood on street, invest in real estate market” goes, from a professional point of view, if investors see any opportunities in terms of good locations with compatible prices then they should grab them as this could be a last chance.
In 2021, the market continues to face challenges. Developers are likely to offer a greater discount or more appealing gifts, including improving marketing strategies to lure ready-to-invest buyers with cash savings in hand and buyers looking for residential properties since early 2020. As an investor, it would be the chance to enjoy the capital gain within a mere 1 or 2 years.
In term of the Special Tourist Visa, which hasn’t been special at all travelers, only a handful of takers elected for the long-stay visa. Travelers have to go through an extensive list of requirements when coming into Thailand. When they arrive, all of them will encounter 14 days of mandatory state quarantine. That does not really match with investors’ desires.
Despite a slowdown of Bangkok’s condominium market as of the end 2020, the situation in Thailand will be clear for 2021 as the rally appears to have lost momentum. From February onwards, we will enter a new era of the real estate market. The natural cooling measures generated by the Covid-19 outbreak and political uncertainty will be automatically implemented. Therefore, we will probably see more balance in demand and supply, reflecting reasonable property value, as speculation decreased. For a start, it depends on the making of a vaccine for Covid-19. Recently, we have heard good news of delivery of the Covid-19 vaccines coming closer to becoming a reality. When the vaccine is ready, maybe in mid-2021, the purchasing power of locals and foreigners in the country will recover rapidly,” he concluded.