Thailand’s residential real estate market during 2016 is predicted to witness caution, according to the latest research from KResearch, the research arm of KasikornBank.
In its latest report it noted that during 2016, Thailand’s real estate market will be boosted by supportive factors while, at the same time, hindered by risks.
Home sales look set to improve, thanks to the government’s real estate stimulus measures released during October 2015. Those incentives included a reduction in home purchase transaction fees to 0.01 percent on ownership transfer and mortgage registration, which will end on April 30, plus individual income tax benefits for those who buy their first homes at up to THB 3 million and transfer ownership before March 31.
During the period before these stimuli expire, real estate market activity should intensify because developers will likely carry out marketing campaigns to hasten purchases.
KResearch has assessed that about 33,250 housing units in the Bangkok metro area may be processed through real estate developers during the first four months of 2016, up 27.7 percent year-on-year. However after the initiative ends, the firm said it will need to keep a close watch on the economy which could influence consumer purchasing power and business decisions to invest in new projects.
Regarding residential property investments during 2016, it is notable that the market is currently rebalancing, the firm reported.
Investors will be cautious about any new investments around the beginning of the year. Developers are still directing their focus towards marketing to help release finished unit inventories, which would be conducive to higher sales.
If market sentiment improves, new investments are expected to follow, it concluded.
