Many developers are crying foul with the government’s loan-to- value (LTV) that was imposed this year coupled with the worsening domestic economy.
With consumer confidence down, and banks not lending to prospective buyers, the market is literally stagnant if not on a downhill trend.
The strong baht and also the inpending global recession is also driving foreign buyers away and immigration rules are only further compounding to the problem.
With no government support for many developers, many developers are saying that is only a matter before the first casualty in the industry emerges and from then on, its going to be a domino effect.
Many developers are saying that the market is getting worsts than the 1997 crisis as during that time, a silver lining could be seen whereas in this current situation, things are only getting worst with no positive developments in sight.
The expected property market growth has been downgraded by many from 3 percent to zero growth.
Many developers are desperately trying to move unsold stocks through various promotions but the irony of the whole situation is that condo prices
have not gone down but rather up with government land appraisals up inorder to boost their revenue collections, prices have actually gone up. Also, many greedy developers are not discounting even units that were again put up on the market as a result of initial buyers who placed unrefundable deposits not being able to transfer their units due to banks not lending or providing mortgage funds.
With forecast that 2020 is even going to even more worst as a result of economic mismanagement, there seems to be no relief in sight.
The second hand property market and rental markets are also affected badly.
With the immigration new policies, many expats are leaving in droves and are dumping their properties cheaply. This is creating a sudden huge oversupply in the second hand property market. In the rental markets as a result foreign expats leaving or denied stay, many property owners are finding it hard to rent out their units.
One property broker commented to Thailand Condo
News that units priced above Baht 18,000 for rentals do not have any takers anymore.
And for the locals, many Thais are downsizing and moving to cheaper rentals and many are also defaulting on rent payments and even mortgage payments for those that have bought units.
Meanwhile the local government and its economic council lead predominantly by the Palang Pracharat and Democratic parties are is still living in denial and saying the economy is improving with their policies.