Real estate in 2024, 50% of housing loan rejections, the main pressure, some residential projects, reproject rates reach 80%, low price 3 million, the remaining 50% for sale, quarterly sales remain at 30% of the normal 40%, In contrast to land prices, the CBD rises to 3 million baht/sq, expanding by 40% despite the poor economy.
February 12, 2024 Mr. Nata Khabana General Director Knight Frank Thailand He revealed that the real estate market is still under pressure from…Home Loan Rejection (Rejection Rate) From a group of financial institutions
Quarterly new home loan lending data shows that in the third quarter of 2023 there were a total of 7,242 units worth 23,514 million baht. “A decrease from the same period last year” In the third quarter of 2022, 8,108 housing loan units worth 24,859 million baht were issued.
“In the past, the condominium portfolio was affected by the tightening of housing loans. With a total of 50% of the total loan installments and some projects as high as 75-80%, that is, dozens of houses were sold, with only two loans, resulting in condominiums priced below 3 million baht “. There is an outstanding balance of 50% compared to the entire market.”
Total residential units in 2023 were opened for sale with 745,335 units, 527,067 units sold, accounting for 70.7%, with an average selling price of 145,000 baht/sqm. Looking at quarterly sales, it was found that an average of 30% of New launches are sold out. It has not yet returned to 40% at the beginning of last year. Especially the price group below 3 million baht.
In contrast to the Grade B group, which has a price range of 10-15 million baht and above, and the Super Prime group (average price 200,000 – 250,000 baht/sqm and above) which still enjoys good sales.
This is in the same trend as the supply of new residential units to be launched in the fourth quarter of 2023, with a total of 11,316 units, and there were more Grade B projects to be launched for sale at 44%, followed by Grade C at 44%. 32%, Super Prime 16%, and Grade A 8% of the total market
“Entrepreneurs have modified their strategies and plans to launch projects at the middle level and above as a result of the purchasing power of the lower middle class. There is a problem in home lending. It is different from the upper group which has high potential purchasing power.
Similar to the home group, the luxury home market remains strong with 90% of sales in the 71-99 million baht price group, while the 21-30 million baht price group is not affected by interest rates. As a result, this group gained the attention of entrepreneurs.
However, real estate in 2024 still has worrying factors. Regarding the cost of land, which has moved a lot in some locations, such as the Wireless Road site, the asking price is 3 million baht per square meter, 40% more than 2-3 years ago when the price was at the price of land. Early 2 million baht.
“With the rise in land prices in some projects, the price of the land reaches 50% of the cost, from the original 30-40%, and this may cause a segment of luxury homes. Home prices may rise by 10-15%.”
Read more news:
“Reader. Infuriatingly humble coffee enthusiast. Future teen idol. Tv nerd. Explorer. Organizer. Twitter aficionado. Evil music fanatic.”