Housing sector faces contraction risk as cases rise
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published : 20 Jul 2021 at 07:00
5 A construction worker camp on Soi Vibhavadi 60. According to Mr Vichai, the closure of camps and lockdowns will dampen the market. Arnun Chonmahatrakool
The expanded lockdown measures and 30-day closure of construction sites and worker camps since early this month will plunge the housing market into a severe contraction, according to property experts.
Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said there is a very high chance that the housing market this year will come close to a worst-case scenario. Purchasing power has not recovered yet, he said. With expanded lockdowns, homebuyers will delay purchases as they are not confident to spend at the moment.
Business baffled by gaffes
published : 5 Jul 2021 at 05:30
41 A Bangkok parking lot filled with taxis owned by cooperatives, as 2,000 cars were returned by drivers who cannot afford the rental fees. (Photo: Nutthawat Wicheanbut)
As both new daily infections and deaths caused by Covid-19 continue to set records, concerns regarding the administration s ability to govern the country have almost reached a critical point.
The third outbreak, the largest since the pandemic emerged early last year, is undermining the public health system and slowing economic recovery. As doubts over the government s management of the crisis grow, the outbreak threatens to shake the administrative power of Prime Minister Prayut Chan-o-cha s government.
18 A migrant workers dormitory in Bang Chalong market, Bang Phli district, Samut Prakan on Sunday following the announcement of lockdown measures on construction sites and worker camps in Greater Bangkok. Wichan Charoenkiatpakul
The 30-day temporary lockdown of all construction sites and worker camps in Greater Bangkok will cost 140 billion baht and have a ripple effect across all supply chains in the construction and property sector with unpredictable losses.
Sarun Rojlertjanya, deputy secretary-general of the Thai Contractors Association, said losses from the abrupt lockdown order in the construction sector would be larger than the value it contributed to gross domestic production.
Earlier this month, there was good news in terms of public safety and the urban environment. It was reported that the Office of Natural Resources and Environmental Policy and Planning (Onep) was going to enforce a more stringent environmental impact assessment (EIA) rule for high-rise building developers.
Reduced homebuyer fees help market stay active
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published : 28 Jan 2021 at 09:02
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A renewal of the reduced property tax measures for another year can help boost housing demand and purchasing power, says a property consultancy, even as the cut in transfer and mortgage fees remains capped at 3 million baht a unit.
Phattarachai Taweewong, director of research and communications at Colliers International Thailand, said the measures help developers and consumers.
The cut in transfer and mortgage fees from 2% and 1%, respectively, to 0.01% should not be capped for units priced 3 million baht and lower, he said. It should be applied to all price ranges, or at least up to 10 million baht.