Siam Commercial Bank Economic Intelligence Centre, or SCB EIC, forecasts the property market in this year will drop by up to 10 per cent when the measure to reduce the value of loans to 80 per cent for a second home and 70 per cent for a third home becomes effective on April 1, 2019.
The SCB EIC said that loans normally are available for an average of 90 per cent of the cost. When the reduction in eligible loan value comes into effect, it will reduce purchasing customer purchasing power. As well, the interest rate is also signed to increase. The two factors combined will impact the property market in 2019.
The SCB EIC forecasts the property market will decline from last year’s over Bt800 billion to around Bt760 this year, a drop of about 10 per cent. Up to Bt510 billion of this year’s spending will be in Bangkok and suburbs.