The strong baht which according to official sources is expected to even strengthen further is driving away foreigners in the droves to markets like Vietnam and Philippines. Coupled with Thailand’s immigration rules and regulations which are always changing but in a worst manner each time, more foreign property investors are looking at other markets.
The worst four regions in Thailand affected are Bangkok, followed by Pattaya , Chiangmai and lastly Phuket.
The strong baht is becoming a burden for expats and retirees living on their pensions and many are these days forced along with the strict and draconian immigration rules to seek out newer locations like Vietnam, Philippines and even Cambodia.
Vietnam is experiencing an acute shortage of housing at the moment in all its major cities due to a high demand by foreigners and Philippines is now seeing a revival in its property market especially condominiums as the take up is ever increasing by foreign buyers thanks in part due to the Thai government’s actions.
At the same time, cities like Chiangmai and Pattaya are now flushed with secondhand properties as most expats try to sell and recoup whatever they can to move on to newer countries. In Chiangmai, the situation is so drastic that in some cases owners are even discounting up to between 30 to 40% of what they had initially paid to get rid of their homes or condos. This is turn is having an effect on the brand new property market which is already having a bad time as banks are turning down loan applications from new prospective buyers.
A similar situation is also occurring in Pattaya and also Bangkok. The second-hand property market is flushed with expats and retirees trying to sell their properties fast but the problem is that there are very few takers and even locals or other foreigners with money are playing a wait and see game to see if prices will fall even more.
The Immigration policies have also been the last straw for many expats and retirees with many now relocating especially to the Philippines where things are pretty flexible and easy.
There isn’t a rainbow in sight for the local property market and things are not expected to improve in 2020 either. Meanwhile, the Thailand’s Economic team which comprises mainly members from the Palang Pracharat and Democrat parties have yet to announce any new plans to assists the property market nor any newer stimulus packages that might actually work to revive the Thai economy.