"CEO of Capital One"assesses the overall real estate market, noting that the purchasing power of Thai consumers is beginning to slow down compared to the first half of the year, due to political issues, economic conditions, and household debt. Meanwhile, foreign demand remains strong, but there are concerns that properties priced between 10-15 million baht may face challenges.SME business owners are lacking liquidity and many have gone under since the COVID-19 pandemic. The demand from 'Asian customers' is a significant opportunity, particularly from Myanmar and Cambodia, while we await changes in Indian investor behavior. There are concerns that 'populist' policies may only stimulate the economy in the short term. It is recommended to restructure and reduce distortions in the system, and to encourage foreign investment in Thailand by launching the brand 'Keller Williams Luxury' to penetrate the luxury real estate market in Thailand, aiming for sales of 9 billion baht in the luxury market by 2023.

Mr. Wit Kulanthawiphat, CEO of Capital One Real Estate Co., Ltd. and Keller Williams Thailand, a leading real estate agency and market advisory firm in Thailand, which has the highest sales in the U.S. and the largest network of employees globally, currently manages residential projects, condominiums, hotels, and villas valued at no less than 30-40 billion baht, revealed that the company's sales over the past 6-7 months have improved continuously and are three times better than during the COVID-19 pandemic. However, there are signs of a slowdown among Thai customers, particularly after the elections, with sales decreasing by about 10% from the second quarter (April-June), although sales remain stable compared to the same month last year, likely due to the impact of 1. politics, 2. the declining economic growth trend in Thailand, and 3. high household debt levels.

"Factors causing the mid-range housing market among Thai consumers to slow down, especially in the 10-15 million baht price range, are due to many SME business owners facing difficulties since COVID-19, leading to a loss of purchasing power in this segment. Feedback from project owners indicates a strong desire for assistance in selling products in this category, as many workers lack the purchasing power for such expensive items. However, single-family homes priced over 40 million baht are less affected, as buyers in this segment are typically medium to large business owners with substantial reserves and purchase based on preference."

In the condominium market, there has been a positive adjustment, attributed to some units being absorbed from the market, along with an increase in foreign buyers compared to the COVID-19 period, resulting in a decrease in available inventory, especially in the Central Business District (CBD) areas such as Sukhumvit, Silom, and Sathorn. The number of new projects launching in the CBD has decreased, and prices have risen due to high land costs, positively impacting the demand for second-hand condominiums.

Demand from 'Asians' Seeking Housing in Thailand

Mr. Wit discussed the foreign market's perspective on purchasing real estate in Thailand, stating that geographically, the Asian customer market is expected to continue growing. We will see movements from buyers from Myanmar, Malaysia, Cambodia, etc., as these buyers are familiar with Thailand. It is anticipated that within two years, buyers from Myanmar will become a larger market, while Indian buyers will also grow, although it will take time for their investment behavior to change, as they are not yet accustomed to purchasing real estate in Thailand for investment purposes.

"When considering foreign investment in real estate projects in Thailand, we mainly look at a few countries, such as Japan and China. Japanese real estate companies are investing in Thailand because there are not many condominium projects in Japan, coupled with a slowing economy and a low birth rate, leading to a surplus of vacant homes. They need to allocate investment funds and partner with Thai real estate companies. Chinese real estate investment in Thailand is due to strict regulations and a saturated market in China, prompting them to invest here instead," Mr. Wit explained, drawing on his expertise in the international real estate market.

Hoping for Strong Policies from the New Government to Stimulate the Economy

The CEO of Capital One expressed hope regarding the establishment of a new government, wishing for policies that will bring structural changes to promote economic stability in the medium and long term. He believes that populist policies or short-term economic stimulus measures will only provide temporary relief for 3-6 months, and once the cash injection ends, the situation will revert to its previous state without substantial change.

We may need to shift our perspective on foreign investment in real estate, recognizing both the benefits and drawbacks in the long term. Foreign investment should be evaluated based on how much benefit it brings to Thai people, such as job creation from the investment proportion, resource utilization within the country, and whether large investments could lead to oversupply issues in the real estate market, hindering the competitiveness of Thai developers. Improvements in the mortgage lending process in Thailand remain a significant structural factor affecting the real estate sector, as there are still limited options for financial institutions providing loans, and government support for lending is not comprehensive, leading to financial institutions overly dictating the direction of the mortgage market, making it difficult for buyers to access loans due to stringent requirements. The use of credit bureaus as a limitation for low-income individuals does not benefit those with good credit and complicates the loan verification process for buyers. These issues are structural problems that need to be addressed.

Regarding expectations for the establishment of a new government, it is clear that having a government is more beneficial than just having a caretaker government. However, if the establishment of a government leads to increased conflicts, it will not be good for business. We must consider long-term factors that could impact stability, such as the government's ability to drive economic change. Personally, I do not want to view the situation as merely needing a government for economic issues to improve.

Keller Williams Luxury Targets the Luxury Real Estate Market in Thailand

Sales figures in the Luxury or Grade A++ market are expected to rise globally, with Keller Williams Luxury achieving over 58,443 units sold worldwide in this market for properties priced above 35 million baht in 2021, totaling over 103.6 billion USD in global luxury sales, making it a leader in the Luxury Real Estate sector.

As a result, Keller Williams Thailand (KW) has launched a new division under the brand Keller Williams Luxury Thailand to specifically serve this customer segment, both Thai and foreign. The division offers premium services such as concierge services, exclusive access to luxury 5-star hotels worldwide, investment management by account managers, personal assistant services, and discount programs for various services exclusively for Keller Williams Luxury Thailand clients. The company aims for luxury market sales of 9 billion baht in 2023, with a growth rate of 20% per year, with property prices starting from 40 million baht up to 200 million baht for luxury villas.

KW also provides services for foreign clients looking to own property in Thailand, such as in Bangkok, Samui, or Phuket, as well as selling luxury properties, and for Thai clients wishing to own luxury properties worldwide, such as in Beverly Hills, London, Berlin, and Dubai, with Keller Williams Luxury offering professional agent services globally.

Keller Williams Realty was founded in 1983 by Gary Keller and Joe Williams, and currently has approximately 1,100 branches and over 200,000 employees worldwide. In 2022, it was recognized as one of the top-ranked real estate companies by various publications, including Entrepreneur and Forbes.