COVID-19 The Thailand Situation
Until now little impacted by the Coronavirus crisis, Thailand has just closed most of its borders by ffectively prohibiting any entry on its territory including for its nationals.
This tightening is the logical continuation of the containment measures decided last week, following the worrying increase in the number of confirmed cases of Coronavirus. Thus, the announcement of the closure, on Sunday, March 22, of all non-essential businesses in the capital has caused large population movements to the provinces.
Another strong measure is that all public and private educational institutions are closed until further notice, and Songkran’s holiday – the Thai New Year in mid-April – has been canceled.
The economic consequences are already being measured, tourist resorts continue to empty while tourism revenues represent 14% of the country’s GDP.
Real estate will inevitably be impacted.
There as elsewhere, it is difficult to predict the consequences that the health crisis will have on the real estate market. The containment measures extended to tourist areas in the coming days, will have the consequence of blocking the market as in France, where the closure of Real Estate Agencies and notarial offices make any transactions impossible.
This will undoubtedly result in the suspension of programs that are in the process of being marketed or under construction and the closure of the least efficient agencies.
Once the pandemic is over, the real estate market is likely to rebound, but it is difficult to say how quickly the recovery will take place.
The local real estate market will depend on the economic mpact of the crisis, but Thailand has already demonstrated in previous crises in the late 1990s and in 2009 that it could quickly emerge from these tumultuous episodes.
The real estate market turned towards foreign buyers and the tourism sectors will certainly rebound more easily. Due to the high emand for quality housing in the tourism sectors, it is likely that the “break” will be short-lived.