Picture courtesy of Thai Rath
A staggering 1.64 million homes across Thailand lie empty, creating a huge economic waste valued at 3.45 trillion baht. This figure nearly equals the nation's yearly budget, according to a Thai Real Estate Research and Valuation Centre (AREA) survey. The "ghost housing" crisis is most severe in Bangkok, with more than 730,000 vacant units largely due to aggressive market speculation.
The issue is particularly acute in the condominium market, where the vacancy rate stands at a significant 24.8%. Condominiums make up 58% of all empty homes in Bangkok, with low-cost units especially vulnerable. Condos priced under 500,000 baht have a 21.1% vacancy rate, often leading to quick deterioration due to insufficient maintenance fee collection.
Detached houses and townhouses have lower vacancy rates, but the overall excess in housing stock is causing instability. Experts caution that rampant speculation complicates the sale of new developments and may threaten the financial stability of lending institutions. The AREA report estimates the value of these vacant homes at 3.45 trillion baht, a clear economic waste if not properly utilised.
Currently, Thai law lacks strong penalties for property owners keeping units vacant. The report proposes a Land and Building Tax to specifically target unoccupied homes as a solution. Such a tax could encourage sales and rentals, increase housing affordability, and stimulate the economy by getting properties back into use, reported The Nation.
Bangkok (730,000 units) and the rest of Thailand (900,000 units) share nearly equal numbers of unoccupied homes. Without policy intervention, this vast reserve of idle assets will continue hampering Thailand's economic potential.
Key Takeaways:
- Thailand has 1.64 million empty homes valued at 3.45 trillion baht.
- Condominiums in Bangkok have the highest vacancy rates due to speculation.
- A proposed tax on vacant homes could prompt sales and boost the economy.
Inga kommentarer:
Skicka en kommentar