The first-quarter performance of real estate companies listed on the Stock Exchange of Thailand (SET) declined in 2024 compared to the previous year.
The decline is attributed to the economic slowdown, rising household debt, and stricter lending criteria by financial institutions. Efforts by the private sector to shift focus from mid- to low-end housing to the high-end and tourism markets have encountered challenges.
Despite government measures to stimulate the real estate sector, the impact remains insufficient due to tight lending practices by banks. While foreign purchasing power is returning, it has not reached pre-pandemic levels. Notably, Ananda Development Public Company Limited achieved a positive turnaround by attracting foreign buyers through roadshows.
Data from the Real Estate Information Center revealed that in Q1 2024, nationwide residential property transfers decreased by 13.8%, the value of these transfers fell by 13.4%, and new loan issuances dropped by 20.5%. This led to a slowdown in new supply, including construction permits and new housing launches.
The real estate market is expected to recover in the second half of 2024, driven by government stimulus measures and improving purchasing power. However, caution is advised regarding high-end residential developments as sales have started to slow down. (NNT)
