Thai Real Estate Leaders Urge Bank of Thailand to Tackle Strong Baht as Foreign Condo Buyers Face Struggles. On September 25th, 2024, Mr. Prasert Taedullayasatit, the chief executive of a property business, urged the Bank of Thailand (BoT) to implement measures to prevent the baht appreciation from negatively impacting key sectors such as exports, tourism, and real estate.- The Pattaya News

Thai Real Estate Leaders Urge Bank of Thailand to Tackle Strong Baht as Foreign Condo Buyers Face Struggles

Kittisak PhalaharnThursday, 26 September 2024, 17:26

National —

On September 25th, 2024, Mr. Prasert Taedullayasatit, the chief executive of a property business, urged the Bank of Thailand (BoT) to implement measures to prevent the baht appreciation from negatively impacting key sectors such as exports, tourism, and real estate. 

Prasert highlighted that over 86 billion baht worth of condominiums are awaiting ownership transfers in Q4 2024, with around 20-30% of these properties being purchased by international buyers. The strong baht is making Thailand's property market less attractive to foreign investors, as they now require more capital to complete transactions.

Mr. Khajornsit Singsaensern, the President of Siamese Asset PCL, echoed these concerns, stating that the current exchange rate, which has dropped below 33 baht per US dollar, has weakened foreign demand, particularly in the condominium market. 

Khajornsit urged the BoT to consider lowering interest rates to weaken the baht, which would not only benefit the real estate sector but also revitalize other areas like exports and tourism. Additionally, he noted that lower interest rates would ease the financial burden on businesses and reduce loan repayment costs for citizens.

Mr. Vichai Viratkapan, the Acting Director of the Real Estate Information Center (REIC), added that while the real estate sector is seeing support from government measures, it needs additional stimuli, such as lower interest rates and relaxed loan-to-value (LTV) regulations. 

These actions would help boost the market, especially during the crucial final quarter of the year. He emphasized the importance of foreign buyers, who account for 25% (approximately 100 billion baht) of the total condominium market, valued at over 400 billion baht.

Despite some slowdown in Q2 due to financial transfer issues faced by buyers from Myanmar, China, and Russia, Vichai believes the situation will improve. He is optimistic that international transfers for 2024 will reach levels similar to 2023, which saw 73 billion baht in foreign condo transfers. 

As of the first half of 2024, foreign transfers have totaled 32.9 billion baht, with Chinese buyers remaining the dominant group, remarked Vichai.