The President of Thailand's Housing Business Association has given his forecast for the year ahead, encouraging caution from developers in the wake of international changes.

Speaking to The Bangkok Post, Atip Bijononda said the influence of external factors on the Thai economy should not be underestimated. 

"Consequences of the US-China trade war may cause some layoffs and slow new investment," he said.

"If the global economy affects the Thai economy, purchasing power will diminish.

"As the property sector usually relies on infrastructure projects, it depends on whether the next government will continue key policies on the country's mega projects."

Lending curbs and higher interest rates are expected to diminish the purchasing power of new homebuyers in 2019.

Mr Bijononda said the land and building tax set to take effect in 2020 will likely boost the amount of second homes to compete with new residential supply, which will in turn impact the launch of new supply.

"Developers should be more careful of their liquidity, as company expenses will be fixed, but earnings may miss their targets," he said.

"Sales and transfers will not be as good as expected, which means they may need capital reserves for healthier cash flow."

Source: The Bangkok Post

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