A property research center reported on Wednesday that Thailand’s property market is expected to return to pre-pandemic levels in late 2023. The report put the recovery sooner than previously forecast, above all, supported by an easing of housing loan regulations and a reopening to foreign visitors.
The Bank of Thailand last month relaxed mortgage regulations to help revive a key sector that accounts for about 10% of Thailand’s gross domestic product (GDP). The property sector also employs 2.8 million people, from the coronavirus-driven slump.
The property sector had initially been forecast to return to normal in 2025-2027, but it could pick up sooner, the Real Estate Information Center (REIC), a unit of the Government Housing Bank, said in a statement.
“The easing of mortgages and the country’s reopening will make the real estate business active again,” said Vichai Viratkapan, acting chief of the center.
New sold housing units are expected to fall by 35% to 43,051 units this year before doubling next year, he said.
The Bank of Thailand earlier said the easing of regulations would help increase mortgages by 50 billion baht per year.
However, Mr. Vichai said that despite the mortgage-easing, banks are still cautious about lending to home buyers amid a weak economy. Because the property sector faces higher costs and a shortage of migrant workers due to the outbreak.
Meanwhile, the Thai government plans to reopen borders to workers from neighboring countries to ease the labor shortage.
Earlier this week, Thailand’s finance minister predicted the economy would grow 1% this year and 4% next year, following a 6.1% slump last year.