The optimism that Thai Government intervention and lower prices away from the city will have resulted in a positive start to 2016 appear to have been false hope, according to research from RHB Thailand.
The firm noted that property buyers and investors continued to display concerns about the economic slowdown, as well as the comments from industry experts regarding oversupply in certain parts of the property market.
The firm also reported that market remained weak during the first three months of the year, with the current property stimulus package – which has now been extended until the end of this month – not having the intended effect in boosting sales.
Pre-sales, according to the company, were down 13 percent year-on-year compared with the same period last year, and 23 percent down from the previous quarter. Although data is still being collated, the firm said new launches will be down by as much as 30 percent year-on-year during the first six months of 2016, with most developers again waiting to unveil new projects.
Another issue impacting new launches is developers’ focus’ on clearing existing unsold. The good news is that RHB Thailand is predicting that as much as 70 percent of total project launches for the whole of 2016 will take place in the second half of the year.
RHB Thailand also noted that more competition for mid- to high-end projects along Bangkok’s mass transit routes will intensify due to the fact that more developers are entering the segment – one that is still recording healthy take-up rates in most locations.
Whether buying sentiment in Bangkok will improve in just a matter of weeks will remain to be seen, and whether developers will regain confidence to launch new projects while new stock remains unsold will be another factor that will determine the overall outcome of the Bangkok property market in 2016.