Thailand’s Property Sector Faces Long-Term Challenges

Analysts are warning of a prolonged downturn in Thailand's property market, with sales and prices expected to continue their decline. Structural issues are at the heart of the problem, calling for comprehensive solutions to revive the sector.

Oversupply and Weak Demand Threaten Stability

The market is currently grappling with an oversupply of more than 200,000 units, particularly in low-rise housing, which could take up to six years to clear. Meanwhile, weak demand, fueled by economic concerns and stagnant wages, exacerbates the sector's struggles.

Household Debt and Limited Impact of Stimulus Measures

Household debt exceeding 90% of GDP and cautious bank lending practices further hinder the market's recovery. Short-term government interventions have had minimal impact, disproportionately benefiting high-end buyers while offering little relief to the broader market.

Pathways to Recovery

Experts suggest boosting income levels and attracting skilled foreign workers as key strategies for long-term growth. Adjustments to real estate ownership policies and taxation measures could also stimulate demand and address demographic challenges.

The health of Thailand's real estate sector is crucial for the broader economy, requiring targeted measures to navigate the current slump and ensure sustainable recovery.