However, there has been an overall contraction in the housing market this year, particularly in the independent housing segment, which has seen a decline of 10%. The number of transfers and land partition applications has also decreased by 2.8%, reflecting market weakness.

The sluggish formation of the government has led to a decline in purchasing demand, with people losing confidence. However, the demand in the second and third quarters is expected to be compensated in the fourth quarter, and with interest rates beginning to stabilize, market confidence is also being restored.

Vasan expressed the hope that the government could provide more support to stimulate the real estate market as it is a key driver of the economy.

He suggested that the government loosen restrictive policies such as Loan-to-Value (LTV) ratio restrictions and reduce the offset rate of land and building tax by 50% for the next year. Additionally, a reassessment of land valuation and land tax, along with a temporary halt to tax rate increases, would help avoid stagnation in the real estate market.

Apas, an advisor to the Thai Condominium Association, stated that the pandemic has led to a reduction in income for the middle- and low-income groups, resulting in increased debt and a decrease in loan approvals.

Financial institutions have become stricter in their approvals, and with a slowdown in demand in the second and third quarters, absorption rates have decreased, leading to a stagnation in the housing market in 2023, especially in the mid- to low-end segments. The share of foreigners in the market, accounting for 10%, has yet to recover, leading to a decline in sales.

However, it is expected that the intervention of the new government will stimulate market confidence, and the market is expected to improve in the fourth quarter, which is the peak season, and this is expected to continue into 2024.

Regarding the trends in the residential market in 2024, construction costs may rise, influenced by external factors such as the "Israel-Hamas" conflict, which may impact oil costs and future property prices.

If the situation continues to deteriorate, it may affect inflation, leading to at least a 5% increase in house and condominium prices next year. Therefore, consumers with purchasing demands and affordability should consider purchasing property early, as most of the inventory consists of old stock, leading to relatively stable prices. This trend meets the demands of both actual demand groups and investors.

Pongnari, the President of the Thai Real Estate Association, stated that while high-priced housing sales have performed well this year, they have been limited and restricted.

He believes that the instability of the international economy, such as inflation and events like the Israel-Hamas conflict, has had a negative impact on real estate market operations.

Some positive signs can be seen in the Eastern Economic Corridor (EEC) region. Factory occupancy rates continue to rise, positively impacting real estate projects in the EEC region. Additionally, with the emergence of more foreign labor in the region, hotel occupancy rates have also improved.

If the Thai government can attract investments from electric vehicle manufacturers and make it a hub for electric cars and motorcycles in Southeast Asia, it would contribute to stimulating the real estate market growth in that region.