The property market in Thailand is likely to be impacted by a potential recession in 2023. A recession is defined as a period of economic decline, characterized by a decrease in gross domestic product (GDP), increased unemployment, and a decline in consumer spending.
When a recession hits, the property market is often one of the first sectors to feel the effects. This is because people tend to be more cautious about making large purchases during a recession, and property is a significant investment. In addition, the value of properties can decrease during a recession, making it difficult for homeowners to sell their properties or refinance their mortgages.
In Thailand, the property market has been on a steady upward trend in recent years, with an increase in both residential and commercial property prices. However, a recession could cause property prices to decrease, as demand for property drops and the number of available properties on the market increases. This could be especially true for higher-end properties, which tend to be more sensitive to economic fluctuations.
In addition to property prices, a recession could also have an impact on the construction industry in Thailand. A decrease in demand for new properties could lead to a slowdown in the construction of new buildings, which could lead to a decrease in employment opportunities in the construction sector.
On the other hand, as the economy is slowing down, lower interest rate can be expected and that would make it more affordable for people to buy property and could also help to boost demand for property.
Overall, while a recession could have a negative impact on the property market in Thailand, it is important to note that the market is complex and multifaceted, and the effects of a recession will likely vary depending on the specific circumstances. It is important to keep an eye on the economy and the property market, and to seek professional advice before making any major property-related decisions.