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Real Estate Trends / Strategies to Cope with the COVID crisis (Part2)
The government has readjusted the economic growth target after the 4th wave outbreak of
Covid-19, from 2.5-3+2-2.5 to 1.5-0%. The real estate business continues to grow, but is experiencing some buying delay, with hope for things to be better after the government has successfully managed the pandemic.
Mr. Danucha Pichayanan, secretary general of the Office of the National Economic and Social Development Council (NESDC), said that due to the serious threat of the widespread Covid-19 epidemic, we have to use social networks to talk to each other or work together in the form of ‘Work From Home’
" ‘This too shall pass if we help each other.’ The government has to issue a number of economic stimulus measures for both business and public sectors.”
"The government has issued relief measures using a 500 billion baht loan, such as distributing compensation money, support and promote the small and medium-sized industries (SME), as well as investing in various infrastructure and public utilities to support the expansion of the economy in the near future."
A source in the Ministry of Finance reveled that "Even though the GDP growth did not reach the target of 2.5-3+2-2.5% as the 4th wave of Covid erupted, it has been adjusted from the growth of 1.5% or more to 0%. This is considered a temporary slowdown until the situation resolves itself or until the vaccination rollout reaches its goal."
Mr. Woradech Rukkhaphan , Chief Executive Officer of VBeyond Development Co., Ltd. revealed to ‘Trend Real Estate Online Magazine’ that although we are facing the fourth wave of the epidemic, everything has to go on, especially in the Thai real estate business.
Mr. Woradech continued, “I believe that the epidemic can be stopped by the proactive vaccination of about 80% of the population. To make the real estate sector move on with the local purchasing power very weak, we can hope for foreign purchasing power because they have enough capital to invest and are better-prepared than us: There is an expectation that foreign investors will invest in Thailand more.”
Therefore, the government should set certain goals as follows:
1. Set a goal to open the country within the first quarter of next year no later than March.
2. Vaccinate up to 80% of the population by the end of the year or by at least within the first quarter of next year.
3. Completely amend the law and enforce it in time to provide more opportunities and convenience for foreigners to buy and own real estate in Thailand to create more flexibility in terms of investment with our country. Moreover, the ceilings of various taxes should be lowered and the ratio of holding assets needs to expand.
4. Modify the method for flexibility in issuing "visa", amend the complex and time-wasting rules to speed up the process.
5. Count down to verify accuracy related to the law amendments and set a policy to absorb “capital" around 800 billion baht from foreigners to circulate in our domestic capital system faster.
All of these will definitely generate growth in the GDP of our country.
Ms. Kesara Thanyalakpark, Managing Director of Sena Development Public Company Limited said that the impact of the COVID-19 situation has drastically decreased the sales of vertical real estate, especially condominiums, but the purchasing power of the new generation with 20,000-30,000 baht salary still remains.
However, we must adapt to survive by roughly estimating which direction the buyers’ tastes have changed. Having done this we have found that consumers prefer low-rise homes more than vertical ones.
Therefore, the real estate business has to adjust to keep up with the needs of consumers as well as monitor the vaccination program which needs to be accelerated to increase confidence among people in all sectors. In other words, the vaccine is everyone's hope.
Mr. Kromchet Vipanpong, Chief Executive Officer of Assetwise PLC. (AWS) said that during the COVID-19 crisis, executives of any real estate company should do these things.
“Organizational executives should focus on the environment and safety of both internal and external personnel and should practice CSR in building environmental awareness and social responsibility both internally and externally."
"This will help attract buyers without spending too much of the advertising budget as word of mouth alone can increase sales sufficiently.”
An examples of a law which shows that the government focuses on the real estate business to attract foreign capital to invest in the country is the amendment of the ownership of condominiums from 49% to be able to hold 70-80%.
(More details about the official announcement of law amendments related to foreign investment real estate business in Thailand will be in the next issues).
Walai Chutamtut
Executive Editor
