The Bank of Thailand has launched new measures to intensively expand the real estate business in 2022, while the private sector uses "digital platform" as a marketing tool.

The Bank of Thailand has launched new measures to intensively expand the real estate business in 2022, while the private sector uses "digital platform" as a marketing tool.


● The Bank of Thailand is taking the lead to help the government stimulate the real estate sector, hoping to grow proportionately by 9.8 of gross domestic product (GDP) after a heavy collapse in 2021 from the impact of Covid-19

 

       The Bank of Thailand (BOT), a government unit that supervises public and private banks, including foreign banks that have branches in Thailand, recognizes the importance of the real estate business as one of the business sectors that contributed to 9.8% of domestic GDP.


        Therefore, several measures were issued to stimulate the economy and stimulate trading in the sector as the covid-19 situation has had a severe impact on the business.

 

       There were several impacts as following: 1. The total value of transfer of ownership nationwide is 801,241 million baht, a decrease of 13.4% from the previous year. There were 68,357 units of allocation permits throughout the country, a decrease of 22.1%. There were 43,051 units of newly-opened residential units in the district Bangkok and its vicinity, a decrease of 35%.

 

       As aforementioned, the Bank of Thailand has to use measures to stimulate revenue in the real estate sector to drive the economy forward to support the year 2022 as following:

        1. Loosen the rules of the original LTV (loan to value ratio). For the 70-90% mortgage lending of both public and private banks, the ceiling will be increased to 100% until the end of 2022.

         2. Extension of real estate tax measures to reduce transfer and mortgage fees to 0.01%    from December 2021 to December 2022


          In addition, the Bank of Thailand has agreed to ease and reduce restrictions in order to attract outside capital to help revive the economy and stimulate trading and the employment of 2.8 million people, within the manufacturing sector which includes furniture, electrical appliances, factory materials, construction, finance, advertising, housing rental services, benefiting many people. It has diversified new funds and boosted employment through the real estate sector by redistributing liquidity from offices and those who can bare more debt, especially middle-income earners who are less affected by COVID-19, and generate income for related businesses as a whole.

        These can help drive the GDP as they are considered risk-free measures as real estate profits are at a low level and financial institutions still have good lending measures. Also, home loans do not exacerbate the household debt problem because Thai household debt is in personal loans and credit cards.

         In conclusion, the Bank of Thailand will monitor and adjust the appropriate measures reflecting the situation.


● Real estate sector adjusts itself: Bring "digital" to create a Virtual Sale Gallery


      Mr. Prateep Tangmatitham Chief Executive Officer of Supalai Company revealed the use of technology in real estate development that is absolutely necessary to be used in every form, such as in the design and construction, we use IBM (Building Information Modeling) or use the Virtual Sale Gallery to help expand the selling around the world without boundaries in the marketing of the real estate business.

       One source in the real estate sector also added that we should apply is Google Trends, looking for insiders that can be developed into a campaign to reach the target audience or make content that is interesting to people using search engines that comes up quickly. Especially in Chinese markets such as in Guangdong, Zhejiang, Shanghai, Beijing, Jiangsu and others. which have a strong interest in Thai real estate,   Moreover, we also should invest in various digital channels to reduce costs, such as YouTube, Facebook, Instagram, TikTok and other popular social media sites, Also, marketers have to adjust themselves to mainly focus on the overall picture of the customer's preferences, such as ensuring the landscape to be pleasant, considering the feng shui of the room and the ability to see the pool, trees, mountains and surrounding areas. In fact, all "digital" types must be applied along in order to reach the target group and generate sales speedily.


Walai Chuthamthat, Executive Editor