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Vaccines key to revive real estate market in tourism provinces

Vaccines key to revive real estate market in tourism provinces

BANGKOK: Economic and tourism recovery driven by vaccinations will help revive the sluggish property market in tourism-reliant provinces which have been hit hard since the spread of COVID-19.

COVID-19propertyeconomics
By Bangkok Post

Saturday 12 June 2021, 10:30AM


Vichai Viratkapan headed a series of special online seminars to review the impact of the COVID-19 crisis on property sectors throughout the country. Photo: REIC

Vichai Viratkapan headed a series of special online seminars to review the impact of the COVID-19 crisis on property sectors throughout the country. Photo: REIC

Vichai Viratkapan, acting director-general of the Real Estate Information Center (REIC), said the property market of provincial economies that rely on tourism felt a severe impact from the pandemic last year, reports the Bangkok Post.

“Tourism destinations like Phuket, Hua Hin in Prachuap Khiri Khan and Cha-am in Phetchaburi saw a sharp contraction in the residential market in the second half of 2020 as the pandemic ravaged the tourism industry,” he said.

In Phuket, residential demand sharply declined with only 443 units sold in the second half of 2020, down from a peak of nearly 3,800 units in 2018 as people felt insecure about their jobs after the pandemic hit.

It was also a consecutive drop from 741 units in the first half of 2020, 1,118 units in the second half of 2019, 2,296 units in the first half of 2019, 3,140 units in the second half of 2018 and 3,788 units in the first half of 2018.

New residential supply in Phuket faced a similar downward trend with only 423 units launched in the second half of 2020, compared with a high of 3,900 units in the first half of 2018.

Phattanan Phisutvimol, president of the Phuket Real Estate Association, said residential sales in Phuket last year were also poor, particularly of townhouses, as incomes have disappeared with the pandemic.

“Most people in Phuket had lower incomes, while banks took a cautious approach to approving loans for mortgages,” he said. “This led to a phenomenon of a scramble for customers.”

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Some agents used strong connections with banks to get the names and contact information of homebuyers who already had a mortgage loan with other residential projects and approached them with attractive deals in other residential projects instead.

Eventually, homebuyers changed their mind and went with the new offer.

“As there are fewer buyers getting approvals, many of them changed their minds due to these tactics. Some projects saw up to three customers switching,” Mr Phattanan said.

However, anticipation of economic recovery from Phuket’s sandbox model might not happen as expected because of two factors, he said.

The first is a possible trade-off for Thais who can visit now versus foreigners who will visit after reopening.

“When Phuket welcomes foreign tourists, we are not confident that Thai travellers will remain as everybody knows that vaccinated people can still get infected,” he said.

Moreover, Thailand is considered an at risk country due to a high number of infections, so demand from foreign tourists and international flights to Phuket remains uncertain.

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Christy Sweet | 14 June 2021 - 20:56:53

NationThailand reports 06 13 -"Thiravat Hemachudha director .... Chulalongkorn University, revealed that many people who had received two doses of the Sinovac vaccine for three to four weeks showed no neutralising antibody, or at only 20-30 per cent..." AZ is also showing problems and bad batch might be the cause.. 

cyberspider | 14 June 2021 - 19:37:39

Christy Sweet: im from CzechRepublic, but there are such cases in many countries. For instance Public Health England announced that out of 42 people who died during last month with Indian mutation, 1/3 were fully vaccinated. 

Sir Burr | 14 June 2021 - 15:44:49

But, but.......the last article you published said that the demand was there.....

CaptainJack69 | 13 June 2021 - 13:03:35

Potential infection aside the real-world restrictions that affect everyone immediately (like freedom of travel) are based on vaccination. We are being denied basic freedoms based on our race. Not exactly a good advert for 'luxury lifestyle' property.

Christy Sweet | 13 June 2021 - 11:05:50

Cyberspyder, just what nation are you referring to as your comment is rather alarming and I'd like to know more about it.   

cyberspider | 13 June 2021 - 01:14:13

CaptainJack69: unfortunately vaccines are not the holy grail, in my little country there were already cases of people who died with covid, despite being fully vaccinated for several months. Even more, they apparently spread covid to more people in their community, who were also fully vaccinated. 80% are getting pfizer here, and the rest get moderna and astra.

Christy Sweet | 12 June 2021 - 22:35:45

"As everybody knows that vaccinated people can still get infected,” he said. " That's some nugget K. Phattanan drops there, yes when you use 58% efficacy vaccine, it doesn't stop transmissions especially when everyone stops wearing masks immediately after the first dose. Open up to foreign tourists and say hello to er, Epsilon  variant.  

CaptainJack69 | 12 June 2021 - 13:26:42

Phuket's 'domestic' property market was already over-saturated and of course is suffering now because people can't afford food never mind over-priced houses. 

We can kiss the 'foreign' market goodbye since foreigners have been so blatantly ignored and marginalized since the outbreak.

They should have offered vaccines to everyone from the start.

 

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