Confidence index in Bangkok real-estate will recover once pandemic eases: REIC

The Government Housing Bank’s REIC said the confidence index of residential developers in Greater Bangkok in the third quarter of this year stood at 45.8, marking a slight drop from the previous quarter.

However, the centre said it believes confidence will improve in the next six months once the Covid-19 situation eases.

The index value for the sector has been below the median of 50 for 10 consecutive quarters since the second quarter of 2019.

REIC acting director-general Wichai Viratakaphan said the Bank of Thailand’s loan-to-value (LTV) control measures in the second quarter of 2019, coupled with the Covid-19 pandemic were to blame for the low index.

He said these two factors had slowed down both supply and demand in the real-estate sector, adding that developers were still very concerned about the ongoing pandemic.

“However, the confidence index among developers in Greater Bangkok for the next six months has risen to 57.2. This may be due to the government’s promise to have 70 per cent of the population fully vaccinated by the end of 2021, including using the Pfizer vaccines donated by the US to provide free boosters,” Wichai said.

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He added that the Centre for Economic Situation Administration (CESA) also recently proposed new measures to the Cabinet, including the expansion of the ceiling for foreign buyers. CESA proposed that foreigners be allowed to own more than 49 per cent of condominium units as well as be allowed to buy landed property.

“The confidence in real estate for the next six months has risen significantly since the government began relaxing lockdown measures and allowing some businesses like restaurants, beauty salons, massage parlours and airlines to resume business,” he concluded.