COVID-19 slows the market down as Thai developers look to the future
COVID-19 slows the market down as Thai developers look to the futureThis article on Thai developers appears in the Dot Property Group Report: How Has COVID-19 Impacted the Thailand Property Market? Click here to download your FREE copy.COVID-19 has slowed the Thailand property market with more than 90 percent of deve…August 16, 2021
This article on Thai developers appears in the Dot Property Group Report: How Has COVID-19 Impacted the Thailand Property Market? Click here to download your FREE copy .
COVID-19 has slowed the Thailand property market with more than 90 percent of developers surveyed reporting a decrease in sales during the past year. However, more than half of the homebuilders asked expect the market to return to pre-COVID-19 levels by the end of 2022.
Those were among the key findings of the Dot Property Developer Survey which looked at how the Thailand property market has been impacted by COVID-19. Firms of all sizes were anonymously polled to provide an honest look at their experience during a challenging time.
Half of the developers surveyed said sales had significantly decreased because of COVID-19 while another 41 percent noted sales had decreased. Even when firms did manage to complete transactions, it took much longer than prior to the COVID-19 pandemic.
A staggering 75 percent of homebuilders noted that it took significantly more time for buyers to make a decision while a further 17 percent found slightly more time was needed for buyers to reach an agreement. Only eight percent found there to be no change.
Developers tried various measures to generate more sales during the pandemic with discounts being the most popular method. Offering more flexible payment terms and creating incentive packages, such as furniture or other freebies, were among the other tools used to entice buyers.
An upper management executive at a large Thai developer found local investors were willing to buy completed units once they began marketing incentives.
Thai developers look ahead to the future
The impact of COVID-19 in Thailand required 67 percent of developers to postpone or cancel new project launches during the past year. Despite this, 92 percent of the firms asked have no plans to change the type of projects they launch.
Looking to the future, more than half of the homebuilders polled are confident the Thailand property market can return to pre-COVID-19 levels by the end of 2022. However, there were several developers who don’t see that happening until 2023.
According to 75 percent of firms, the reopening of tourism will be the most important thing to stimulate the Thailand property market. Others noted that a recovery could be supported by easing current regulations or with government stimulus measures. For example, the founder of a boutique developer noted increased transparency of landed property ownership laws could prove helpful.