The new corona virus this hitting the world this month has taken a toll on another victim. This time, it is in Thailand. Bangkok’s condominium market is now in the limelight lately as there are fears that many of the apartments are now sitting empty in the face of restricted travel from China. For example, it is noted that Thailand’s property sector might be the next victim as many of its chinese investors face restricted travel and hence do not visit Thailand’s real estate. This is especially true for Bangkok’s luxury segment where chinese investors made up the bulk of the foreign property purchase in Singapore. Please see Penrose Condo Prices by City Developments in this environment. Penrose Condo will be for sale soon.
Based on analyst’s estimated, the number of foreign investors that are looking to buyer properties in Singapore might be restricted now and sales should remain subdued for the rest of the year given that chinese have restricted access to thailand and there are attempts by the Chinese government to restrict capital outflows. Despite this setback, the Bank of Thailand is committed to prop up the country’s real estate sector by easing the lending criterias to developers in the residential condominium sector. There are also attempts to push local Bangkok buyers to buy the properties but demand has been subdued so far given that the local earning power is not as strong as overseas Chinese investors which have flooded into the market since Thailand opens up its real estate to international investors.
However, Thailand developers are still very cautious despite the government opening up its credit facilities because oversupply is definitely still a concern as previously most chinese investors has bought it for investment rental. However, with lesser traffic now into the country, renting out apartments in Thailand has obviously become a concern and hence the aim of having a property for rental does not seems to be feasible anymore. Also, GDP for the country has dropped as well and there are alot more brand new units sold previously that are now competing for tenants as well. These apartments were bought by Chinese and overseas investors including Singapore before the Covid-19 virus.