Higher interest rates, mortgage curbs and the unknown effects of the general election are among the risk factors for the local market, says CBRE
Danish physicist and Nobel laureate Niels Bohr famously quipped that “prediction is very difficult, especially if it’s about the future”.
However this year will bring significant changes in the Bangkok property market, slower growth in many sectors and an incoming wave of new supply, according to CBRE, the international property consultancy.
The race for increasingly rare sites is still hot with the increase in land prices and scarcity of freehold land in prime locations.
However, with new regulations on the horizon and a new Bangkok City Plan scheduled to take effect in 2020, developers are taking a step back to assess the situation.
New regulations and uncertainties
The real estate market will face a series of challenges, including a higher policy interest rate, tighter mortgage regulations, and the need to prepare for the expected introduction of the new city plan and a land and property tax in 2020.
As well, the general election on March 24 will have an effect on the economy and the progress of infrastructure projects.
Challenges in exports and tourism
Two key economic drivers of the economy, exports and tourism, will face challenges this year.
It’s still uncertain whether US-China trade tensions will have a negative or positive impact on Thailand’s export industry.
Meanwhile, winning back Chinese tourists remains the biggest hurdle for the tourism industry since the sinking of a tour boat off Phuket that killed 47 Chinese visitors last July.
Data on arrivals during the recently concluded Chinese New Year period will be watched closely as an indicator of…