Real estate sector in 1st half of this year is sluggish

BANGKOK, Sept 10 (TNA) -- Rising household debt in Thailand during the first six months this year had negatively affected the real estate sector. Operators of the sector are hoping that state investment plus low interest rate would stimulate purchasing power in the second half. Vichai Viratkapan, acting director of Real Estate Information Centre, said new real estate projects were mostly found in Bangkok and outlying areas plus key provinces during the first half this year. During the first half of 2017, about 14 per cent higher than the corresponding period last year of new real estates were established in Bangkok and outlying areas. As many as 30,182 units of condominium were sold during the period, up 27.6 per cent from the same period of 2016. The transfer of real estate ownership in Bangkok and outlying areas during the first six months this year stood at 69,172 units valued at 183.5 billion baht, down 31.9 per cent in volume and 23.7 per cent in value compared to the corresponding period last year. The sharp decline showed the fall in the purchasing power of people resulted from the continued high household debt and falling income following the sluggish in the national economy. Prices of real estate increased between 1.5-2.5 per cent from last year while builders improved the quality in order to meet the demand. With the national economy believes not to improve much during the second half this year, the real sector business seems not to be bright in Thailand. (TNA)