Economic Challenges and Real Estate Market Struggles

The economic slowdown, exacerbated by a recent earthquake and the United States' retaliatory tax policy, poses significant challenges for Thailand's export sector, directly impacting GDP. The real estate market is bracing for another tough year in 2025, despite some relief from supportive measures like reduced transfer and mortgage registration fees and relaxed LTV rules.

Q1 2025 Performance and Liquidity Concerns

Financial reports indicate a 32% shortfall in Q1 transfer values, missing the 47 billion baht target by 15 billion baht. This shortfall threatens developer liquidity and daily bond repayments, highlighting the urgent need for government intervention to mitigate risks.

Urgent Measures and Long-Term Reforms

The Thai Condominium Association has called for immediate action to address the liquidity crunch in the real estate sector and vulnerabilities in the corporate bond market. Proposals include soft loan programs, relaxed credit regulations, and support for real estate bonds nearing maturity. Long-term reforms aim to stimulate the economy through real estate, including foreign property holding frameworks and infrastructure enhancements.