As of September 2020, the Bank of Thailand (BoT) maintained the policy rate at 0.5% with a more optimistic outlook on the 2020 GDP revising its forecast to negative 7.8% from its previous projection of negative 8.1%. The BoT also adjusted its 2021 GDP growth forecast to an expansion of 3.6%, decreasing by 1.4 percentage points from 5% in the previous forecast. The BoT Committee predicted a slightly smaller contraction in 2020 and a lower expansion rate in 2021 due to low recovery in foreign tourist figures due to the COVID-19 global outbreak.
In Q3 2020, there was no publicly announced land acquisition in downtown Bangkok as sales of under-construction projects remained slow and developers focused on clearing their unsold inventory rather than acquiring land for new projects.
We believe land prices in prime locations are expected to remain flat due to the uncertainty in the economy and limited investment activities as a result of COVID-19. However, there will still be demand for prime sites, but prices must be realistic.