InfoQuest (August 07, 2019) -- Thai residential housing market will see a rebound after the new Thai government came in, according to Ms. Siriporn Singharan, chairwoman of Home Builder Association (HBA), citing that the establishment of the new government will boost the confidence of consumers planning to build a house. In the first half this year, the market maintained growth in the first quarter, but slowed down in the second as Thai economy, as part of the slowing world economy, is decelerating. But because the extraordinarily excellent sales performance in the first quarter has absorbed some negative effect in the second quarter, the market actually took little hit in the first half.
Plus since the majority of consumers tend to determine whether to build a house in the second half of a year, the sales of housing construction companies, even the entire market, will take a turn for the better in the coming months. Meanwhile, HBA’s survey shows that in the first half this year, the overall market value of housing construction companies went up compared to the same period last year, so this association is confident that the total market value is on track towards the growth target it set for 2019.
Hit by the overall economic situation, the market of houses, especially those costing 2.5 million to 5 million Thai baht, saw little increase in the first half this year, especially in the second quarter, because consumers are quite susceptible to economic situation. While those costing 5 million to 10 million Thai baht, and more than 10 million Thai baht continued to gain momentum.
"The market is expected to rebound in the second half this year, because political stability is conducive to boosting consumer confidence and more and more consumers will choose self-build houses. We think the new government will introduce more stimulus policies on housing in the following months, given that the self-build housing business is an important driving force for the entire real estate industry," said Ms. Siriporn.
Ms. Siriporn also mentioned that in order to stimulate the market, HBA will hold the Home Builder Expo & Material 2019 from August 29 to September 1, 2019, at Muang Thong Thani Impact Hall6. By then, a host of housing construction leaders will appear to showcase over 1,000 housing designs with costs ranging from 1 million to more than 100 million Thai baht. Moreover, many manufacturers of building materials and home accessories will also participate in the event. This year, HBA will focus on innovative and green technologies.
Mr. Worawut Kanjanakul, secretary of HBA, said that HBA will hold this event in cooperation with NPA Grand Sale and Home Loan 2019 so that there will be top-notch banks offering housing loan with a maximum credit limit and also many assets or NPA for sale. Therefore, this event is a good opportunity for people who plan to build a house to apply for a preferential loan, and also people who look for a plot of vacant land to build a house. HBA estimated that the Home Builder Expo &Material 2019 will bring about a sales revenue of over 3 billion Thai baht.
Source: InfoQuest, by Tanawat Suayaem / Rachada, translated by Xinhua Silk Road
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