Residential market showing improvement since election
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Residential market showing improvement since election

Mr Tritecha, right, and Mr Khajorn at a press conference held on Wednesday.
Mr Tritecha, right, and Mr Khajorn at a press conference held on Wednesday.

Since the general election, the residential market has slowly improved, primarily in the middle to upper-end segment, while low-income earners continue to be affected by an uneven economic recovery.

Tritecha Tangmatitham, managing director of SET-listed developer Supalai, said the market had been quiet since May, with fewer customers visiting project sites, but it rebounded in early August.

"The clearer political situation has helped boost sentiment, but this scenario is only in the middle-to upper-end segment," he said. "The lower-end segment remains challenging in terms of affordability, especially housing units priced at 2.5 million baht and below."

He said there had been a lack of homebuyers in the lower-end segment since the pandemic. This year the situation deteriorated due to several negative factors including a return to the regular loan-to-value limits, increasing interest rates, the economic slowdown and rising costs.

Over the year, costs for housing construction have risen by 3% despite flat growth in inflation and land prices this year.

However, since demand for homes in the luxury segment had been absorbed since last year, the market that offered potential this year is likely to be in the middle price range.

"Homebuyers in the lower-end segment need to rely on mortgages. They depend on banks," he added.

Mr Tritecha said another group of potential homebuyers facing obstacles in obtaining home loans, despite having substantial purchasing power, are those earning income through online platforms such as content creators, online sellers and gamers.

"Compared to salarymen who can access up to 100% of the credit line for home loans, online freelancers are typically limited to 70-80%," he said. "These professions are no longer new, so they should be recognised."

Recognising them as potential homebuyers, Supalai adjusted its products to cater to their needs. This involved creating spaces for broadcasting within condo units, incorporating storage rooms and coordinating with furniture producers to provide fully-furnished units more efficiently.

Khajorn Chiaranaipanich, founder of digital publisher and content marketing consultant The Zero Publishing Co, suggested the new government recognise content creators as a certified profession.

"To promote these careers, the government should implement a policy that supports and provides tax deductions to organisations purchasing content from local creators," he said.

There should also be welfare and social insurance for the creator professions and a support fund for creators. Additionally, there should be vouchers to improve content creation skills among the general public.

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