Real estate developers in the country might be in for some challenges this coming 2019 because of the new mandate to be announced by the Bank of Thailand or BOT. This may or may not have an impact on ทาวน์โฮมศรีราชา and other properties all over the nation. BOT wants to be stricter when it comes to offering mortgage loans. This new standard is to be implemented on the first day of April.
This announcement came after the bank imposed a higher policy rate. Realty experts said that the timing could not be worse since the economic growth of the country is coming to a slow.
The CEO of AP Thailand Plc, AnupongAsavabhokhin, believes that real estate developers will be facing a challenging year in 2019 because of the negative factors that will impact the purchasing power of the consumers. It is time for property firms to change their business models that will reflect their long term goal instead.
On the one hand, he is positive that the real estate market will grow by five per cent in 2019 because of the strong demand by home buyers for residential properties that cost from five million to 10 million baht. This is the sector that will not feel much impact despite the new measures to be imposed on mortgage loans by the central bank unlike the second home and the speculators segment.
PeerapongCharoon-Ek, the CEO of Origin Property Plc, said that he agrees with the statements of Anupong. He believes that the new regime of the central bank will not have a big effect on the demand of the real estate market. For his part, he expects the market to grow by around 10 per cent in 2019.
The market for middle to upper income will not be greatly affected especially those properties that are between five and ten million baht. The impact is more likely greater with sectors from lower to middle income market. Real estate developers for ทาวน์โฮมศรีราชา will have to see what the next year has in store for them and for home buyers in the area.