Furthermore, most commercial banks have increased loan rates, prompting a more cautious approach to property acquisition. This has underscored the importance of credit management, leading to issues such as loan rejections for clients.
Thailand's currency management policy has also been influential. With the Thai baht continuing to depreciate, exceeding 37 baht to 1 US dollar, this is likely to impact various import data and fuel costs, thereby affecting people's living expenses in the short term.
For the real estate market, every 1% increase or decrease in interest rates leads to an 8% increase or decrease in the affordability for homebuyers and a 3% impact on investors. This implies that a 1% increase or decrease in interest rates will inevitably affect the real estate market by 10-12%. Therefore, the performance of the real estate market has been somewhat affected.
It is worth noting that 56 new residential condominium projects were launched in the first eight months of this year, comprising a total of 29,601 units, with a value of 81.457 billion baht. The average selling price per unit was 2.75 million baht, representing an 11.33% increase from the same period last year. Although some new projects experienced a decline in both quantity and value, the overall market performance remains robust.
Regarding high-end housing projects priced over 10 million baht, 60 projects with a total of 3,903 units were launched in the first eight months of 2023, with a total project value of 94.487 billion baht, a 62% increase compared to the same period in 2022. This demonstrates that, despite some impact, the real estate market in Thailand continues to maintain a cautious growth trajectory.
Of particular interest is the purchase of housing by foreigners in Thailand this year. The Thai government has implemented visa-free policies for foreign tourists in recent years, leading to increased enthusiasm among tourists from countries such as China for traveling and shopping in Thailand.
According to data released by the Real Estate Information Center (REIC) in Thailand, foreign buyers purchased approximately 7,338 units worth 35.211 billion baht in the first eight months of this year. This figure represents a significant increase compared to the level of the past five years (2018-2022), where foreigners purchased 6,512 units worth 26.541 billion baht in 2018. It is expected that, with the government's proactive policies, foreign investors will continue to monitor the trends in the Thai real estate market.