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Every sector of every industry in the world has been affected by the current global COVID-19 crisis, including the real estate market in Phuket and Thailand on the whole, with the local residential property market growth cut from 5-7% to 3-5%.
How is the Thai property market affected by COVID-19?
The coronavirus chaos is constantly changing, so it is not easy to predict an outcome. Some say that COVID-19 will soon fizzle out, and we certainly hope so. As far as the statistics to date go, Thailand has relatively few infections compared with European nations and China. Perhaps, this is thanks to the stringent healthcare and containment measures, or due to the tropical climate.
What we do know is that in the initial stages of COVID-19, back in January, the Thai property market was hit by a drop in Chinese investors, due to many Chinese nationals being stranded in their home country as well as the knock-on effect on the domestic Chinese economy with regard to Chinese investors’ spending power. On the other hand, Chinese nationals who had traveled to Thailand before the lockdown stayed longer to escape the coronavirus and the restricted living conditions it caused.
While it’s impossible to say exactly how this scenario will play out, according to an optimistic outlook, the economy is set to improve as early as this summer, or at least, by year-end. The Bank of Thailand (BOT) is already employing measures to alleviate financial pressure and ensure stability, such as the Monetary Policy Committee’s unanimous vote to cut the policy rate to an unprecedented 1% in February 2020, making the BOT the first central bank to react to the coronavirus outbreak. The BOT cited it as a “necessary preemptive move.”
Is this the best time to invest in Phuket?
Yes! For those who have the capital, it is definitely worth taking advantage of the current situation while prices are low. Right now, property investors can choose from a great selection of properties at lower than normal prices, and enjoy promotional offers, like Patong Bay Sea View, which is on offer at just 2.9 M THB for the sea view unit. Flexible payment plans and the stable Thai currency make investing in Phuket property convenient and attractive.
Buy Low, Sell High
All of the above suggests that with the current property prices, now is a great time to invest in property in Phuket. Those who are able to invest are set to benefit from investing less capital while prices are low. Predictions suggest that once the coronavirus crisis blows over, Chinese and European investors will continue to buy up residential properties in Phuket. High returns are likely once property markets recover, for both rentals and sales. All savvy investors know to buy while prices are low and reap the rewards when prices are high. After all, this is how all property investors achieve success and growth; by knowing when to buy and when to sell.
If you would like to come and reap the benefits of the current property market prices, contact our team on +66 (0)986717328 or send an email to email@example.com for a FREE property tour!
To view the available luxury properties in Phuket, please visit www.propertyinphuket.com.