A THAI property developer warned that the political situation now appears to have reached a deadlock with this affecting the market particularly the budget condo segment where a large number of buyers are unable to get loans, Matichon newspaper said today (Aug. 10).
Mr. Chanin Vanijwongse, CEO of the Habitat Group Co., Ltd., said it remains to be seen whether Pheu Thai Party succeeds in setting up a coalition government and in the end this camp might have to pull in the “uncles’ camps”, referring to the Palang Pracharath led by Prawit “Uncle Pom” Wongsuwan and the Ruam Thai Sang Chart under de facto party boss/caretaker prime minister Prayut “Uncle Tu” Chan-o-cha.
“Please speed up setting up the government if this can’t be completed in August don’t let it stretch beyond September.
“From a business point of view, no matter which party the government emerged after the May 14 election we hope that everything proceeds smoothly.
“Confidence will return once we pass this point with private investment by both Thais and foreigners flowing in again and this leading to the economy gradually improving in the fourth quarter which is the high season for tourism.
“It’s not good for the economy if it is delayed as a vacuum emerges,” he said.
Chanin mentioned that the unstable political situation had delayed decision-making by both home buyers and investors developing new projects including foreigners interested in investing in Thai real estate.
Right now the market is turning quiet with everyone waiting for political clarity and clear policies from the new government.
Should the new government spur the property market by implementing stimulus measures particularly reducing transfer and mortgage fees, which is 2 percent and 1 percent respectively, in the final quarter which is when developers accelerate sales it will lead to more activity.
Chanin added that the new government must have people who know the economy and implement clear policies with immediate action taken when needed.
The property market is currently facing a problem of buyers, particularly those who had booked condos priced below 3 million baht, unable to get home loan approvals. The rejection rate is as high as 40-50 percent because rising household debts had led to banks not easily releasing loans, he added.
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Top and Front Page: Habitat Group Co., Ltd. CEO Chanin Wanichwong. Both photos: Matichon
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