Property supply and demand is expected to become more balanced next year while foreign buyers wait in the sidelines for opportunities to invest in the property market in Thailand ensuring a positive outlook for the upcoming year. Throughout the pandemic a rich vein of the workforce have taken to remote working. Companies and job roles offer the opportunity for people to work around the world in different time zones. The trend of the digital nomad has also been noted by the government who have suggested relaxed restrictions for entry to the country for this profile of person.
As confidence grows around the world and vaccines rates increase, borders continue to open further supporting those that wish to live abroad. With the introduction of the wellness and medical visas, allowing people to remain in the country up to a year should see an onset of demand for housing through the scope of the market.
As Thailand’s rental properties still offer a good yield approximated at 5%, many investors are looking to take advantage of a more advantageous situation than their own country. The Chinese have been particularly prevalent in market and NPP Realty and Consultants expect this interest to rise throughout 2022.
Whilst the property market is expected to reach pre-pandemic levels in 2023 the news of the relaxed mortgage regulations to help revive the property market has been met with excitement throughout the industry. Many indicators are that the property market may even hit expected GDP in 2022 when it was previously predicted to return to previous levels in 2027.
Within the luxury property market there is rarely a drop and demand. This demand is expected to run throughout the whole of 2022 with exciting new projects on the way as well as the more established developments such as Four Seasons Private Residences, Chao Phraya River and Mandarin Oriental, The Ritz Carlton, continue to progress with their sales. We at NPP Realty Consultants regularly support transactions throughout these properties.
Government stimulated buying is expected to have many benefits to the economy of Thailand. The property industry dropped to 6 percent GDP in 2019 which is expected to have bounced back to 10 percent by 2022. This stimulus will be a positive for all industries to ensure the long term recovery from the pandemic. NPP Realty and Consultants have had many vibrant clients eager to return to Thailand or have done so already, it has been a pleasure serving them throughout 2021. We are now even more excited for 2022.