ECONOMIC OVERVIEW

After the pandemic, the economy has recovered at a steady pace this year, thanks to higher tourist arrival numbers, government support to households and some easing of travel restrictions. A further rebound in the tourist sector has begun but is likely to need longer than expected to recover to pre-pandemic levels, due to the on-going zero-covid stance of China, and the absence of Chinese visitors. The figures show that Malaysia has taken top spot in terms of the number of tourist visitors to Thailand this year, beating the prepandemic conqueror, China. The Baht has suffered as a result of the Fed’s aggressive posture on interest rates, as well as demand for safe-haven currencies. Rising interest rates and tourism income should help the Baht gain momentum towards the end of 2022 and into 2023. Despite the rise in GDP, tightening financial conditions and rising inflation cutting into real earnings pose hazards. Inflation rose to 7.9% in August 2022. Because of lower commodity prices, inflation should begin to moderate in Q4 and continue to moderate into 2023. Energy price volatility poses a risk to the pace of recovery, however.

FOREIGN BUYERS

According to the Real Estate Information Center (REIC), condominium transfers by foreigners in 2022 stood at approximately 2,326 units in Q2/2022, a rise of 15.1% from last year, 62.9% involving the transfer of new units and 37.1% resale units. The number of resale units has increased for six consecutive quarters. For the transferred new units, 81.9% of rooms transferred were under five million Baht. Foreigners are increasingly acquiring condominium rights. There is also no additional purchasing pressure from non-Chinese purchasers to replace Chinese condo unit purchases lost owing to overseas travel restrictions. The proportion of ownership transfer of condominium units to foreigners is currently no more than 10% and more than 30% for second-hand condominiums.