The local property market continues to rebound thanks to stable interest rates, improved economic sentiment and stronger consumer confidence, say property developers. Thongma Vijitpongpun, chief executive of Preuksa Real Estate Plc, the country’s second-largest developer, said the number of units sold in the third quarter increased by 20% over the second after bottoming out in the fourth quarter last year.
In the third quarter, the consumer confidence index rose to 74.5 from 72 in the second quarter, according to a University of the Thai Chamber of Commerce survey.
“Many research houses reported the same – that Thailand’s gross domestic product, which had dropped for four consecutive quarters, will bounce back,” he said.
The property market next year will grow by 5% to 10% in line with the improving economy, he said. This year the overall market is forecast to drop by 5% to 70,000 units worth 210 billion baht, he added.
Housing sales totalled 45,000 units worth 138 billion baht in the first nine months of the year – down from 73,000 units worth 212 billion baht in the same period last year.
Mr Thongma said the residential market this year had undergone some changes. Several townhouse projects were launched this year but with prices lowered to match demand.
The property market’s key drivers in 2010 will be the potential extension of tax breaks for buyers and developers, changes in Board of Investment Home regulations and an upward trend in interest rates, he said.