Property Market Could Shrink 10-20% In 2009
For the time being, the Government Housing Bank reduced its latest home loan target for 2008 from Bt90 billion-Bt79 billion after new mortgage loan applications in last quarter of 2008 took a leap.
The bank also viewed its mortgage loan target for 2009 at a more conventional Bt73 billion after catching clues of crashing market response, GHB president Khan Prachuabmoh told.
Preuksa Real Estate president and CEO Thongma Vijitpongpun said the developer estimates that demand in greater Bangkok will go down 20% from 56,000 units in 2008 to 40,000 units in 2009.
Home purchasers will panic that their future earnings would go down after the global crisis hits the economy particularly the export and travel sectors.
“We observe demand for residences lessening since the last quarter of 2008 when our consumers visiting our housing projects decreased between 20-30%,” he said.
Though, if the new government is secure and launches policies to encourage the economy, the property market may get better in the second half of 2009, he said.
Property Perfect managing director Chainid Ngowsirimanee considers that the global slump will be less of a risk to the economy than the economic crisis of 1997 for the reason that now developers are in improved financial form.
Though, the company has to amend its business plan prior to the economic slump in 2009 by managing its cash flow and developing projects that produce cash more willingly than spend cash, he said.
Suphin Mechuchep, managing director of Jones Lang LaSalle (Thailand), said the global downturn started to upset the market in the last quarter of 2008 mainly for high rise housing projects and commercial projects.
As per the international property agency's research, rental rates for office space started to reduce in the final quarter of 2008, from an average of Bt616 per square meter per month for Grade A office early in 2008 to Bt600.
In the meantime, office space is moving towards oversupply with almost 600,000 square meters of fresh office space to be completed in 2009, together with 400,000 square meters for the new Government Centre office.
The bank also viewed its mortgage loan target for 2009 at a more conventional Bt73 billion after catching clues of crashing market response, GHB president Khan Prachuabmoh told.
Preuksa Real Estate president and CEO Thongma Vijitpongpun said the developer estimates that demand in greater Bangkok will go down 20% from 56,000 units in 2008 to 40,000 units in 2009.
Home purchasers will panic that their future earnings would go down after the global crisis hits the economy particularly the export and travel sectors.
“We observe demand for residences lessening since the last quarter of 2008 when our consumers visiting our housing projects decreased between 20-30%,” he said.
Though, if the new government is secure and launches policies to encourage the economy, the property market may get better in the second half of 2009, he said.
Property Perfect managing director Chainid Ngowsirimanee considers that the global slump will be less of a risk to the economy than the economic crisis of 1997 for the reason that now developers are in improved financial form.
Though, the company has to amend its business plan prior to the economic slump in 2009 by managing its cash flow and developing projects that produce cash more willingly than spend cash, he said.
Suphin Mechuchep, managing director of Jones Lang LaSalle (Thailand), said the global downturn started to upset the market in the last quarter of 2008 mainly for high rise housing projects and commercial projects.
As per the international property agency's research, rental rates for office space started to reduce in the final quarter of 2008, from an average of Bt616 per square meter per month for Grade A office early in 2008 to Bt600.
In the meantime, office space is moving towards oversupply with almost 600,000 square meters of fresh office space to be completed in 2009, together with 400,000 square meters for the new Government Centre office.
Labels: home loan, Housing projects, Mortgage loan
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