CIMB Thai Bank’s Amonthep Chawla emphasised the need for structural changes in the property sector.
He suggested shifting the focus towards providing services for the elderly, catering to health trends and attracting foreign investors.
“Stimulating the real estate sector can have a ripple effect on the economy, as it involves labour, construction and other industries,” he explained.
The bank recommended easing loan-to-value (LTV) ratios and debt-to-income (DSR) criteria to facilitate home purchases. While Thailand’s household debt levels are relatively low compared to other countries,
Amornthep noted that the sector’s multiplier effect on the economy makes it a worthwhile target for government support.
Kanyarat Kanjanavisut from the Economic Intelligence Centre (EIC) concurred, highlighting the sector’s importance to Thailand’s GDP.
She predicted a continued slowdown in the real estate market for the next 2-3 years due to oversupply and sluggish demand.
