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The REIC (Real Estate Information Center) has forecasted two hikes in policy rates by the Thailand MPC (Monetary Policy Committee) in H2, 2022.
🔮 With rising mortgage rates, will housing demand fall further?
What’s expected?
1️⃣ 6% inflation and 3% growth of the real estate market in 2022.
2️⃣ More potential Thai home buyers, especially those looking for mortgages, are likely to put off their transactions in the interim.
Latest market tidings
Home transfers slid by 30% (YoY) in Q1, 2022, with the pandemic playing its part. Interestingly, however, resale demand has gone up by 9.3% (YoY) due to Government incentives and lower rates.
Housing resale transactions could achieve newer records going forward, with increasing NPAs (non-performing assets), distress sales, stagnant prices, and higher supply.
Until demand improves, the authorities are relying on mega home sales, exhibitions and expos to attract buyers, but will they bite? Global cues tell otherwise.