Ms. Kamolphat Saweangkit, Managing Director of DDproperty Thailand stated that "The real estate market in 2020 will be a year for clearing out unsold inventory. The COVID-19 outbreak has not only led to a decrease in prices and the number of properties but will also create a turning point in both the sales behavior of developers and the purchasing behavior of consumers, as well as the demand and supply in the market."

"Due to the impacts of COVID-19 combined with the economic situation, consumers are looking for options that align more closely with their needs and realities. If the COVID-19 crisis continues, it will be challenging for developers, especially smaller ones. As businesses face liquidity issues, we will start to see trends of smaller developers shutting down, along with takeovers by larger developers. Additionally, the slowing economy has reduced consumers' disposable income, leading most to delay their decisions to purchase properties, which will further impact the real estate market," Ms. Kamolphat added.



However, if the number of infections can be controlled and the infection rate decreases to a satisfactory level, it is expected that we will see a trend that, while not very bright, will gradually improve starting from the second quarter onward.

As consumers adapt to the situation, it is anticipated that everything will clearly improve in the third quarter, with many operators conducting marketing activities to stimulate the market and business. The fourth quarter is expected to be the best, as the government is likely to reconsider and prioritize the real estate sector, introducing additional support measures and relaxations to ensure that the real estate market can continue to move forward.

COVID-19: The Cause of New Supply and Price Reductions
Continuous stock clearance since late last year, combined with the COVID shock, has led to a reduction in new supply entering the market from an average of over 50,000 units per year to no more than 30,000 units, resulting in a decrease in the accumulated number of condominiums. This marks another reset for the real estate market in Bangkok, and it has also significantly reduced property prices.

In line with the latest report from the DDproperty Thailand Property Market Index, it was found that in the first quarter of 2020, the Thai real estate market slowed down in both price and supply, with the housing price index in Bangkok decreasing by 9%, while the supply index fell by 3% compared to the same period last year.

"It is expected that in Q2 2020, real estate developers will continue to delay launching new projects, especially medium and small developers, to expedite the clearance of existing products in the market, particularly those priced at 3 million baht and above, which account for 75% of the total supply," Ms. Kamolphat said.

In addition to the reduced supply, a New Normal will emerge in the real estate sector, characterized by consumers spending more time at home, working from home, which presents opportunities to adjust the functionality of living spaces and design residences to align with new lifestyles.

"The future will see developments and changes in the functionality within residences, such as giving equal importance to home offices as to bedrooms, or common areas in condos that previously emphasized co-working spaces or co-kitchens, but COVID-19 has made consumers more conscious of maintaining distance and cleanliness," the Managing Director of DDproperty Thailand further stated.

New Products Focus on Privacy and Address WFH Needs
The new products from developers will emphasize privacy features, such as kitchens or workspaces designed for single occupancy, which will become increasingly important, along with giving more weight to living rooms or workspaces compared to bedrooms, as people working from home tend to spend more time in these areas than in their bedrooms.

Analyzing Online Home Search Behavior Before and After Curfew: Single-Family Homes Lead
As COVID-19 spread more in Thailand, the government declared a state of emergency or curfew, resulting in a shift in consumer behavior towards increased online media usage, including buying, selling, and renting properties. Data from DDproperty shows that website visits on DDproperty.com increased by 8% compared to the period before the curfew, with interesting statistics as follows:

"Although COVID-19 and the curfew have caused various business sectors to slow down, consumer interest in buying, selling, and renting properties has not diminished overall, and most are starting to place more importance on using online media to search for homes, which will become a New Normal that we will see in the future," Ms. Kamolphat concluded.

Ms. Kamolphat Saweangkit, Managing Director of DDproperty Thailand also added, "However, due to the current situation, there are many people who must stay away from home, such as medical personnel who need to isolate from their accommodations, or foreigners/tourists who cannot return to their countries due to travel restrictions, thus necessitating temporary housing. Recently, we have been contacted by many affected individuals seeking assistance. We at DDproperty and the Property Guru Group invite everyone and various organizations that have space, homes, or vacant rooms and wish to share accommodation or #LendASpace to please contact us here to be part of the effort to drive and extend assistance to those affected by this crisis. Or if you need a place to stay, please let us know at #NeedASpace and we will act as a bridge to connect everyone together."