Thailand home building market growing slowly

Thailand’s home building market will continue its growth in the second half of 2010 but the market value as a whole will drop slightly year-on-year, says the latest report by PD House Home Builder Centre.

The political instability in the past two months partially affected the market. The number of new build units in Bangkok dropped but the market in the outskirt areas of the capital and upcountry continuously grew during the first half of 2010. However, according to the report, the market value is expected to grow only 3-5 per cent, lower than the previous expectation of 5-8 per cent.

PD House’s research and business development department also conducted an online survey of 2,548 people on consumer attitudes nationwide on the preferred financial source for new home building. The survey showed that almost 80 per cent of the target group would get a loan from banks rather than use their own savings. This is quite the opposite to the results conducted 5-6 years ago where over 60 per cent preferred using their own savings to build a new house.

Sitthiporn Suwannasut, Chairman and Director-General of PD House Home Builder Centre, said that over 70 percent of its clients would apply for a mortgage to build their new home during the past 5-6 months.

“This is a growing trend. In the past, consumers thought that it was difficult and complicated to get a home loan from the banks. Some didn’t even realise that they were allowed to do that. But now it’s something different,” said Sitthiporn. “Most people believe that their dreams of having a new house could become true more easily once they manage to get a loan while some don’t think they can save enough money to keep up with the increasing house prices”.

SOURCE: Property-Report.com