The property sector will recover once political tensions relax, the National Council for Peace and Order of Thailand (NCPO) speeds up the three main economic drivers and infrastructure investment resumes.
Issara Boonyoung, honorary president of the Housing Business Association, said the three key economic drivers — consumption, government spending and private investment — were functioning less than 10 days after the coup.
“Many rice farmers have been paid. This will help boost consumption,” he said yesterday at a seminar on Greater Bangkok’s housing property situation held by the Real Estate Information Center (REIC).
The NCPO’s economic advisory team is rushing to complete the national budget plan for fiscal 2015 after it was halted during the political deadlock. Government spending will also stimulate private investment.
Wijit Nimitrwanich, director of the Transport and Traffic Systems Development Bureau in the Office of Transport and Traffic Policy and Planning (OTP), said 12 transport projects were ready to be proposed to a new cabinet for approval this year.
“The OTP is preparing them after recently meeting the NCPO,” he said.
“Every project will run as planned after the feasibility study, detail design and environmental impact assessment (EIA) report are completed. The process that takes the longest is the EIA, which lasts anywhere from 4-8 years.”
Mr Wijit said many issues in the high-speed train plan required revision before the final draft was proposed to a committee.
The plan will cover three routes — Bangkok-Chiang Mai, Bangkok-Nakhon Ratchasima and Bangkok-Hua Hin.
REIC director-general Samma Kitsin said the economy in the second half would be back on course and in good shape after a sluggish first five months.
“Consumers and investors are more confident as political tensions ease,” he said. “Government investment in infrastructure has been brushed up, boosting employment and consumers' purchasing power.”
The REIC estimates the total number of condo units being launched this year will fall by 23.5% to 65,000 units from 85,000 last year after the number in the first four months dropped by 40% year-on-year.
Mr Samma said 2013 was the first year ever that condominiums launched in Greater Bangkok outnumbered low-rise housing.
However, the absorption rate of condos was higher than that of low-rise housing due to a change in lifestyles since the advent of the skytrain and an upward trend in prices of low-rise units in the capital, marking most middle-income earners.
The largest number of remaining condo units was in Nonthaburi's Muang district (5,232 units) covering Rattanathibet and Kae Rai where the Bang Yai-Bang Sue Purple Line will start running by 2016. This was followed by Thanyaburi in Pathum Thani with 4,362 units.
The third-largest number of remaining condos was in Bang Sue (2,827 units), where the Purple and Blue lines and other transportation systems will meet.