For several years now building projects have been growing up like mushrooms in Bangkok, Pattaya, Phuket, and other places. This results in today in an oversupply of empty, not sold condominiums. At the same time, Thai people are buying more and more, mainly second-hand condos, mainly because they are cheap today. The foreigners who earlier bought property in Thailand have reduced to less than 50%, mostly due to unfavorable exchange rates.
This trend started around 2018 after the worldwide economic decline but things like later climate panic, visa rules, and others also have had an impact. If you sell your property in Thailand and transfer the money back to your home country you probably will do a good deal, depending on how much your country’s exchange has lowered.
Most developers are today reducing their portfolio with up to 50%, but this is still not enough. Is Thailand facing a property bubble? Most Thai buyers need to get a bank loan to buy the condo. That plus the ease of lending money has created a vulnerable estate financing market where Thai people are generally having too much debts. To meet this problem in time Thai banks stopped lending out money a couple of months ago, for buying real estate. This is probably a good idea to combat the over-lending but it is also devastating to the real estate market. Many Thai customers simply can not buy real estate.
So, is there a property bubble coming up?
We do not think so, despite the huge amounts of empty condos. That is a problem that will resolve by itself in due time. The halt on a bank loan is also temporary, let us hope that will not last too long.
UPDATE: The word is out that Thai banks will start lending out for property investments again in January-2020. Also, the government will shortly raise the registration fees when buying a property. It is said that the raise will be big.
As a foreigner coming to Thailand – now is a great opportunity to buy a house or condo. It likely will never get cheaper. Have a look at what the market has to offer: https://thailand4sale.net
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