Dr. Vichai Wiratthakhan, Inspector of the Government Housing Bank and Acting Director of the Real Estate Information Center (<\/span><\/strong>REIC<\/strong>)<\/strong><\/span> stated that data collected by the Real Estate Information Center on housing project investments revealed that in the first half of 2021, there were few new housing projects entering the market, with only 18,713 units, a decrease of 4.7%, valued at 86,419 million baht, down 5.9% compared to the same period in 2020. This resulted in a total housing supply available for sale in the Bangkok and surrounding areas of 194,779 units, a decrease of 5.4%, with a total value of 971,460 million baht, down 6.4%.

            The number of newly sold units decreased both in quantity and value, approximately 29,776 units, or a 9.1% drop, with a total value of 144,651 million baht, down 9%. This led to approximately 165,003 units remaining for sale in the market, with a total value of about 826,809 million baht, reflecting decreases of 4.7% and 5.9% respectively in both quantity and value.

            New condominium units for sale in Nonthaburi, Pathum Thani, and Bangkok slowed down, with decreases of 70.1%, 67.1%, and 29.1% respectively. In contrast, Nakhon Pathom, Samut Sakhon, and Samut Prakan saw increases in new units for sale of 82.4%, 43.1%, and 16.8% respectively, primarily due to the development of housing projects.

            It is expected that for the entire year of 2021, the housing market in Bangkok and surrounding areas will have approximately 61,993 new units sold, with a total value of about 292,616 million baht, divided into approximately 31,999 housing projects valued at about 173,652 million baht and approximately 29,994 condominium projects valued at about 118,965 million baht.<\/span><\/p>

           The remaining units for sale in 2021 are estimated at around 171,283 units, with a total value of approximately 836,530 million baht, comprising about 99,744 housing projects valued at around 516,072 million baht and approximately 71,539 condominium projects valued at around 320,458 million baht.<\/span><\/p>

For the outlook in 2022, the Information Center anticipates that approximately 86,117 new housing units will enter the Bangkok and surrounding markets, with a total value of about 374,368 million baht, comprising approximately 37,792 housing projects valued at around 202,726 million baht and approximately 42,325 condominium projects valued at around 171,642 million baht.<\/strong><\/span><\/p>

            It is expected that in the first half of 2022, the growth rate of new housing project units will increase by 95.8% compared to the first half of 2021, with an additional growth of 24.3% expected in the second half of 2022. The value in the first half of 2022 is projected to increase by approximately 100.3%, with a slowdown in growth anticipated in the second half of 2022, where approximately 75,843 new units valued at 341,472 million baht are expected, comprising about 35,070 housing projects valued at around 180,421 million baht and approximately 40,773 condominium projects valued at around 161,051 million baht.

            The housing market in Bangkok and surrounding areas is expected to see sales improve by about 17.4% compared to 2021, with further growth of 26.9% in the second half of 2022. The value in the first half of 2022 is expected to increase by approximately 11% and grow by another 22.3% in the second half of 2022, driven by widespread vaccine distribution in the country. It is anticipated that the Thai economy will grow by about 4% in 2022.

            Additionally, in 2022, there will be approximately 161,120 units remaining for sale in the market, with a total value of about 771,953 million baht, comprising about 92,751 housing projects valued at around 482,778 million baht and approximately 68,369 condominium projects valued at around 289,175 million baht. The absorption rate is expected to improve starting in the first half of 2022.

 

            During a panel discussion titled “Forecasting the Recovery of Purchasing Power among Thais and Foreigners Post-COVID-19,” Ms. Suphin Mechucheep, CEO of Jones Lang LaSalle Thailand (JLL)<\/strong><\/span>, stated that in recent times, real estate operators have implemented promotional campaigns to clear stock since 2020. The changes in work life have led people to seek larger condominiums or single-family homes. Regarding foreign clients, the approval of the “Long-term Resident Visa” by the Cabinet aims to attract wealthy foreigners or skilled professionals to reside in Thailand to stimulate purchasing power and enhance the country's skilled workforce. This initiative is expected to encourage more foreigners to come to Thailand as the visa application process will be simplified, eliminating the need for reporting to immigration every 90 days. This program aims to attract 1 million foreigners over five years (2022-2026), with each expected to spend an average of 1 million baht per year, not including the value from investments and income tax benefits for Thailand.

 

On the other hand, Ms. Kamolphat Saengkit, Country Manager of DDproperty, stated that foreign clients, particularly from China, are showing renewed interest in Thai real estate. Thai properties are among the top choices for Chinese investors, second only to Japan. Chinese investors see Thai real estate as offering an average return on investment of 5%, which is higher than the average return of only 2% in China. Additionally, some groups are looking to purchase properties in Thailand for their grandchildren to stay during their studies or to establish businesses in Thailand, with the price range of interest being above 10 million baht, aligning with the government's goal of attracting wealthy investors to stimulate the economy.