The year 2020 has not been very bright for the global economy and daily life. Thailand has also been affected by the outbreak of the COVID-19 virus, and the Thai real estate sector is no exception to the problems caused by this crisis. Although signs of trouble in the Thai real estate sector have been evident since 2019,

          In the past four months of the COVID-19 pandemic, a survey conducted by Terrabkk among various real estate developers during the TERRABKK Real Estate Unity 5 Regions: Overcoming the COVID-19 Crisis event revealed a unanimous response that the outbreak of the COVID-19 virus has resulted in a decline in project visitations, fewer bookings, and the most concerning issue for developers is the transfer of ownership by customers, which is hindered by banks not approving loans during this period. Additionally, customers are uncertain about the future of the economy and are reducing their debt burdens.

          According to research from the Research and Communications Department of Colliers International Thailand, it has been highlighted that the real estate business in 2020 is indeed facing challenges. In the first quarter, only 16 new condominium projects with 5,880 units were launched, marking the lowest new supply in 8 years. Furthermore, the research reported that the overall sales rate of new condominiums in the first quarter averaged only about 31%, the lowest average sales rate in the past 10 years or 40 quarters.

          In March, Terrabkk conducted an online survey regarding real estate purchases this year, gathering responses from 100 participants to assess their interest in buying real estate before the lockdown and the widespread economic impact of the COVID-19 outbreak. The results were as follows:

          In 2020, 62% expressed interest in purchasing real estate, while 38% were not interested. The primary reason for interest in purchasing real estate was the lower prices at 32.5%, followed by investment and residential purposes at 25% each. Among those interested in buying real estate, 67% wanted discounts of more than 30%, and 12% wanted discounts of more than 25%. The main reasons for not being interested in purchasing real estate included concerns about income instability at 42.39% and rising property prices at 10.87%.

          It can be observed that before the outbreak of the COVID-19 virus, there was still considerable interest in purchasing real estate. However, after this event, it remains to be seen whether there will still be interest in buying. Terrabkk is also curious to know if, after the pandemic, the demand for real estate will return to normal levels.

          Please participate in our survey with no more than 5 questions. The results of the survey are not for commercial purposes or for the benefit of any specific company, but TerraBKK will publish the findings to benefit and inform all readers. You can participate in the survey at https://forms.gle/zVktZDmNfwBZTWME9.