On September 24, 2019, Mr. Wasan Kiangsirirak, President of the Housing Business Association, revealed during a seminar titled "Bangkok Quadrant: The Changing World, Changing Rules and Regulations, Real Estate Must Adapt Quickly" that all real estate businesses are currently reviewing their business plans for 2020. They need to analyze and plan carefully to align with reality, as the business outlook carries risks from various regulations, including strict measures on property loans (LTV) and the enforcement of land and building taxes starting January 1, 2020. 

          "The new regulations are negative factors impacting real estate, requiring businesses to plan meticulously, whether it’s for unsold properties (inventory) or land awaiting development (land bank). If land and building taxes are collected, it will increase costs for operators, affecting product prices, which cannot rise significantly due to limited purchasing power among consumers. As for LTV, all parties, including buyers, financial institutions, and operators, must adjust their sales strategies during construction to avoid accumulating unsold inventory," he stated.

          Ms. Aliwassa Pathanathabutr, Managing Director of CBRE Thailand, mentioned that the overall foreign investment market may slow down due to the ongoing volatility in the global economy. Domestically, a slowdown may also occur due to economic factors, and there are already signs of increased land sales driven by concerns over land and building taxes. However, land prices are expected to continue rising until next year.



          Regarding the business plan for 2020, it is anticipated that Thai operators will increase joint investments with foreign investors to mitigate risks. However, it is advised that residential projects, especially condominiums, should not be too similar, as this could lead to an oversupply in the market. Operators should focus on creating distinctive features for their projects, ensuring that both location and pricing are appropriate.

          Mr. Pirapong Jarunek, CEO of Origin Property Public Company Limited, stated that towards the end of 2019 and into 2020, operators will likely release a significant amount of inventory and may engage in fierce promotional competition. He advised that new operators from other industries looking to enter the real estate market should not rush into this sector, as it still carries risks.

          Mr. Rith Sayamanont, Director of the Tax Policy Bureau at the Fiscal Policy Office, commented on the progress of the land and building tax legislation, stating that by October, the Ministry of Finance, the Ministry of Interior, and the Ministry of Agriculture and Cooperatives will complete their reviews as per the legal requirements. The law is set to take effect from January 1, 2020, with an expected tax collection of around 30 billion baht in the first year.

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