Free earthquake insurance for each condo unit and 10-year warranties urged to restore buyer confidence and boost sales.
Condo developers are being urged to implement bold measures to restore buyer confidence and unlock revenue in the wake of last month’s earthquake, with key recommendations centering on free earthquake insurance for unsold inventory or units slated for transfer, coupled with longer-term structural guarantees. Property analysts argue that these steps could mitigate risk perceptions, shorten delays in transfers, and demonstrate a steadfast commitment to safety, helping developers move stalled units and attract new buyers in a market unsettled by the event.
Insurance proposals to restore buyer confidence
The central proposal from industry experts is straightforward but far-reaching: provide free earthquake insurance for unsold condominium inventory or for units that are scheduled to transfer within the developers’ portfolios. This concept is seen as a direct response to the psychological and financial hesitations triggered by the earthquake, aiming to reassure buyers that their investments are protected against structural upheaval and associated damages over the life of the building. The substantive rationale behind this recommendation is that comprehensive earthquake coverage would not only reassure buyers at the point of purchase but also reduce decision delays when transfers are due, thereby accelerating liquidity in markets where confidence has been shaken.
Surachet Kongcheep, who leads research and consultancy at Cushman & Wakefield Thailand, emphasizes that the insurance should extend for the lifespan of the building. He argues that such coverage would act as a concrete signal of reliability, reinforcing trust among buyers whose units are approaching transfer. The argument is that buyers tend to reconsider their commitments when they fear future repair costs or potential depreciation from structural issues, and a robust insurance policy would alleviate these fears. Kongcheep notes that comprehensive coverage of this nature could raise overall buyer confidence, benefiting not only those with imminent transfers but also attracting new buyers who previously viewed the market with skepticism.
The proposed policy would also serve as a demonstration of developers’ dedication to long-term safety and integrity in housing projects. For developers carrying large inventories of unsold units and those managing upcoming transfers, the insurance could facilitate revenue realization as originally forecast, while simultaneously supporting the market’s broader rebound by signaling resilience. In conjunction with this insurance, Kongcheep suggests extending structural warranties beyond current contractual terms. He argues that a long-term guarantee—ideally at least ten years—would provide deeper peace of mind for buyers and help establish a new benchmark for quality and accountability in the housing sector. The overarching aim is to align incentives between developers and buyers by reducing risk perceptions and fostering a climate of sustained trust.
The proposed approach is not presented in isolation; it is framed as a broader strategy to stabilize the market after a shock that has eroded confidence. By tying free insurance to unsold inventory and transfer-bound units, developers could begin to reverse the tendency of buyers to delay purchases or walk away from promising opportunities. The expectation is that such coverage would create a virtuous cycle: more confident buyers lead to faster transfers, more rapid realization of revenue for developers, and a healthier supply pipeline that supports future pricing and market stability. The emphasis on longevity and durability in insurance arrangements is designed to set a precedent—one where housing projects are evaluated as enduring assets rather than short-term investments susceptible to momentum swings in the wake of natural disasters. The long-term warranty component complements the insurance by ensuring that structural concerns are proactively addressed, thereby reducing after-sales disputes and enhancing reputational trust among buyers.
Industry observers acknowledge that implementing free unit insurance for unsold inventory and scheduled transfers would entail costs and risk transfer considerations for developers and their partners in the insurance sector. However, the potential returns—in terms of buyer confidence, faster transfer cycles, and a more predictable revenue stream—are cited as compelling reasons to pursue this strategy. The combined effect of free insurance and extended warranties is anticipated to reframe the value proposition of condo ownership in a post-disaster context, highlighting safety, reliability, and long-term stewardship as core selling points. In this vision, the market would move away from short-term promotional tactics toward durable assurances that address fundamental buyer concerns about structural integrity and future maintenance expenses.
The broader implication for the Thai condo market is that insurance-backed confidence could help stabilize pricing dynamics and reduce volatility in demand. Developers contemplating this strategy would need to collaborate with insurance providers to design coverage that aligns with building lifespans and local risk profiles. The policy design would also need to consider the practical aspects of claims processing, renewal terms, and coverage exclusions, ensuring that buyers receive timely and transparent service when incidents occur. Buyers would benefit from clarity on what is covered, the duration of coverage, and the process for filing claims, with incentives aligned to prompt occupancy and smoother transfers. Ultimately, the goal is to restore not just the financial viability of individual projects but also the overall credibility of the condo sector in the wake of a disruptive event.
As a cornerstone of this policy, developers would also reflect on pricing strategies and capital allocation to sustain the insurance program without compromising project viability. Detailing the cost-sharing framework, risk pooling advantages, and potential subsidies or tax incentives could be critical elements of a successful implementation. The industry expects that thoughtful design, accompanied by transparent communications with buyers, would help ensure market compatibility and minimize friction in the transfer process. In short, free earthquake insurance for unsold inventory or scheduled transfers—complemented by extended structural warranties—constitutes a comprehensive package aimed at rebuilding trust, accelerating sales, and stabilizing the condo market during a period of heightened uncertainty.
Buyer confidence needs practical, safety-focused actions
While financial protections address the economic dimensions of buyer confidence, experts argue that tangible safety measures and transparent evaluations are essential to making the concept workable and credible. Vichai Viratkapan, an independent academic specializing in urban and housing development, reiterates the view that the earthquake’s impact extends beyond immediate damages, significantly impairing buyer confidence and slowing housing sales, particularly in the condo segment. He contends that the market’s current demand signals favor reassurance over promotional incentives.
Viratkapan contrasts reassurance with discount-driven promotions, urging condo developers to shift away from price-based enticements toward risk- and safety-centered assurances. He asserts that what buyers want most in this environment is confidence that their investment is secure and that future issues will be handled promptly and effectively. In this context, free per-unit insurance alone is not a panacea; it must be part of a broader ecosystem of safety assurances and efficient service delivery to restore trust.
Beyond insurance, Viratkapan outlines three strategic pillars designed to rebuild condo buyer confidence, emphasizing a proactive, safety-first approach. First, he advocates for comprehensive safety inspections of buildings and the issuance of structural integrity certificates. Such certifications would serve as objective benchmarks of resilience and would help prospective homeowners quantify risk more accurately. A credible certification process would require standardized criteria, independent verification, and clear disclosure to buyers about a building’s structural status. The availability of structural integrity certificates would enable buyers to compare projects with a clear understanding of safety levels, thereby reducing information asymmetry and enabling more informed purchase decisions.
Second, Viratkapan stresses the importance of fast, one-stop repair services that cover damage assessment, contractor coordination, and insurance claims. This integrated service model would provide a streamlined pathway from incident identification to resolution, minimizing downtime for residents and reducing reputational risk for developers. By ensuring that repairs are managed efficiently, developers can demonstrate responsibility and accountability, reinforcing trust and protecting their brands in the process. The fast-tracking of repairs would also help to preserve the value of units and prevent cascading delays in transfers caused by prolonged repair timelines.
Third, Viratkapan recommends inviting financial institutions to visit projects—both undamaged and repaired sites—to observe real-world conditions and build confidence in lending decisions. This concerted outreach could facilitate mortgage approvals by giving lenders first-hand visibility into structural integrity and the effectiveness of remediation measures. By fostering direct lender engagement, developers can help de-risk financing, support buyers seeking mortgages, and stabilize demand signals in the condo market. This collaboration with lenders is positioned as a critical lever to re-anchor financing attitudes after the震 earthquake, supporting a healthier transaction environment and accelerating the pace of condo transfers.
Viratkapan notes that the immediate consequence of the earthquake was a slowdown in condo transfers and purchases, with the potential to extend over several months. He provides a quantified forecast: a three- to six-month delay in condo transfers and purchases, potentially shrinking the condo market by about 15 percent in the current year, down to roughly 99,000 units worth about 253 billion baht. He emphasizes that these estimates reflect the market’s sensitivity to risk perceptions and the effectiveness of policy responses in restoring buyer confidence.
The broader residential market outlook that Viratkapan presents is nuanced. He projects a contraction in the overall residential market by about 1 to 1.5 percent, totaling around 342,000 units priced at approximately 970 billion baht. Within this landscape, low-rise housing is expected to perform more positively, with a projected growth of around 5 percent, reaching roughly 243,000 units valued at about 718 billion baht. These sector-specific dynamics highlight the differential impact of risk perception and confidence-building measures across types of housing stock, underscoring the importance of targeted, credible actions in the condo space to recover lost momentum.
Importantly, Viratkapan leaves room for optimism contingent on policy measures that ease transactional frictions. He notes that if the condo market can rebound later in the year—bolstered by reductions in transfer and mortgage fees and more relaxed loan-to-value rules—the broader residential sector could expand by as much as 5 percent. This potential upside emphasizes the interconnectedness of mortgage policy, transfer charges, and sales dynamics, suggesting that regulatory and fiscal levers could play a pivotal role in stabilizing and reviving condo demand after a disruptive event.
To summarize Viratkapan’s perspective, the earthquake has created a demand-side shock that requires a multi-pronged, credibility-driven response. Insurance-based protections for unsold inventory, combined with rapid safety certifications, efficient repair services, and lender engagement, form a coordinated strategy aimed at restoring confidence, expediting transactions, and limiting long-term damage to the condo segment’s market share. The vision is to shift buyer sentiment from precautionary price discounts toward a strategic, safety-forward narrative that anchors investments in durable value and governance-driven accountability. The successful execution of these measures would not only stabilize the condo market in the short term but also contribute to a more resilient and sustainable residential market in the longer term.
Concrete steps and projected market outcomes
In the wake of the quake, industry observers have highlighted a set of practical steps that developers can take to operationalize the confidence-building strategies described above. The implementation of free unit-specific earthquake insurance would be complemented by a commitment to extend structural warranties beyond the existing contractual terms, creating a comprehensive safety net for buyers. These steps would require careful coordination with insurance providers to tailor coverage to building lifespans, the expected durability of construction materials, and local regulatory requirements. Developers would need to communicate clearly how coverage works, what it protects, and for how long, ensuring that buyers understand the benefits and limitations of the policy. Transparent communication around these elements would be essential to avoid misinterpretations and to maximize buyer confidence.
A second pillar of practical action centers on safety certifications and inspections. By instituting mandatory safety inspections of buildings and issuing structural integrity certificates, developers can offer an objective, verifiable signal of resilience. The process would involve independent assessments, standardized criteria, and accessible documentation that buyers can review before committing to a sale. The credibility of these certifications would hinge on the independence of the evaluators, the rigor of the testing standards, and the clarity of the certificate’s implications for ongoing maintenance and safety protocols. Once issued, the certificates would serve as a reference point for buyers, lenders, and regulators, helping to reduce information gaps and facilitate more confident decision-making.
A third area focuses on service delivery in the aftermath of earthquake-related damage. Viratkapan’s recommended model of fast, one-stop repair services would streamline the damage assessment, contractor coordination, and insurance claim processes. This approach would minimize the disruption to residents, shorten the time to recommence occupancy or sale readiness, and reinforce the developer’s image as a reliable partner in crisis management. The efficiency gains from such a service model would support smoother transfer processes, reducing the risk of prolonged negotiations or hold-ups that can erode buyer trust and market momentum.
Fourth, engaging financial institutions directly is proposed as a practical tactic to bolster lending confidence and support mortgage approvals. By inviting banks and other lenders to visit both undamaged and repaired projects, developers can demonstrate the tangible outcomes of safety upgrades and repair work, allowing lenders to assess risk with real-world evidence. This engagement could facilitate more favorable lending terms or quicker underwriting decisions for prospective buyers, thereby helping to stabilize demand and reduce purchase barriers in the wake of disruption.
The projected market outcomes associated with these strategies are complex and contingent on multiple factors, including the duration of transfer delays, the pace of repairs, and policy changes in the mortgage landscape. The anticipated three- to six-month transfer delay and a potential 15 percent contraction in the condo market to about 99,000 units valued at 253 billion baht reflect a scenario in which confidence remains fragile. In this scenario, the broader residential market could experience a contraction of about 1 to 1.5 percent, totaling around 342,000 units and valued at roughly 970 billion baht, illustrating the interconnected risk exposures across housing segments. The positive counterfactual—where policy measures such as reduced transfer fees, lower mortgage costs, and relaxed loan-to-value ratios take effect—could reverse this trend and enable the condo market, and the broader residential sector, to rebound by as much as 5 percent.
In essence, the proposed combination of insurance coverage, extended warranties, safety certifications, rapid repair services, and lender engagement is designed to create a structured, credible recovery path for the condo market and the wider housing sector. By addressing both the financial and safety dimensions of risk, developers can build a robust narrative that aligns buyer incentives with long-term quality and safety standards. The key to success lies in delivering clear, consistent messaging, measurable safety outcomes, and practical mechanisms that buyers can rely on when navigating purchases in a market shaped by disaster-driven uncertainty. As the market continues to respond to these developments, the ongoing dialogue among developers, analysts, and financial institutions will shape the trajectory of condo sales and the resilience of the residential market in the months ahead.
Market resilience, policy levers, and the path forward
The earthquake’s impact on buyer confidence has highlighted the crucial role of policy levers and industry-led initiatives in stabilizing demand and supporting market recovery. While the immediate response focuses on safety and financial protections, the longer-term trajectory hinges on coordinated actions among developers, insurers, lenders, regulators, and buyers. The proposed free earthquake insurance for unsold inventory and scheduled transfers, together with extended structural warranties, establishes an anchor for trust-building in a crisis environment. This anchor, when combined with the practical steps of safety inspections, structural integrity certifications, rapid repair services, and lender engagement, creates a multi-layered framework to reassure buyers, reduce transaction frictions, and rejuvenate the condo market’s liquidity.
Developers must navigate the cost implications of these measures, balancing the expense of insurance premiums, warranty commitments, and service enhancements with the anticipated gains in sales velocity, reduced transfer delays, and enhanced brand reputation. Strategic financial planning and risk management will be essential to sustain these commitments over the necessary time horizons, particularly in a market where energy and consumer sentiment can swing rapidly in response to external shocks. Insurance partnerships will need to be structured to ensure affordability and reliability, with clear terms that define coverage scope, claim procedures, and renewal conditions. Transparent governance around these policies will help prevent misinterpretations by buyers and ensure consistent expectations across projects.
From a policy perspective, authorities may look to facilitate the adoption of these confidence-building measures through targeted incentives or regulatory support. For example, governments could consider tax incentives for developers who implement long-term warranties or safety-certification programs, or create streamlined processes for insurers to underwrite earthquake coverage in high-risk areas. Such policy instruments could lower the effective cost of these programs for developers, encouraging broader adoption and accelerating market stabilization. At the same time, clear regulatory guidance on structural safety standards and disclosure obligations would help maintain high levels of consumer protection and market integrity, reinforcing public trust in the housing sector.
Lenders’ perspectives will be pivotal in determining how quickly mortgage operations normalize post-disaster. The suggested practice of inviting financial institutions to observe projects—undamaged and repaired—has the potential to demystify the risk profile associated with condo developments and facilitate more confident lending decisions. If banks and other lenders gain firsthand insights into the effectiveness of safety enhancements and the robustness of repair work, they may be more inclined to offer mortgage products with favorable terms. This could translate into lower down-payment barriers, reduced interest rate spreads, or more favorable loan-to-value ratios for buyers, collectively supporting a rebound in condo purchases.
For buyers, the core takeaway should be the assurance that the market is actively addressing risk, prioritizing safety, and delivering concrete pathways to ownership. The combination of per-unit insurance, longer warranties, independent safety assessments, efficient repair services, and direct lender engagement is designed to shift perceptions from fear and hesitation toward confidence and readiness to transact. As buyers observe progress in safety certifications, prompt repairs, and transparent communication about coverage and claims processes, their trust in the market should gradually restore, enabling a more stable and resilient condo sector over time.
In the longer run, the success of these strategies will be measured by tangible outcomes: a reduction in transfer delays, a quicker recovery of condo sales volumes, and a stabilized pace of new developments. The projections indicate that if the market remains constrained in the short term, a policy-enabled rebound could still occur in the later part of the year, with condo demand potentially rebounding and contributing to a modest, but meaningful, growth trajectory for the overall residential market. The exact scale of recovery will depend on the effectiveness of the implementation, the speed with which insurance and safety measures are operationalized, and the degree to which financial institutions are comfortable adjusting lending policies in light of improved inventory health and buyer confidence. The central narrative remains clear: shifting the focus from promotional discounts to enduring safety and financial protections is key to rebuilding trust, speeding up transactions, and stabilizing the condo market in the aftermath of a disruptive earthquake.
Conclusion
The earthquake that disrupted buyer confidence has prompted a strategic rethinking among condo developers and financial stakeholders. The core recommendation—providing free earthquake insurance for unsold inventory or units scheduled for transfer, paired with long-term structural warranties—aims to reassure buyers, shorten transfer timelines, and unlock revenue that was constrained by risk perceptions. This approach is complemented by a broader safety and confidence-building package: mandatory safety inspections with structural integrity certificates, fast, one-stop repair services to streamline post-disaster recovery, and direct engagement with financial institutions to reinforce lending confidence and mortgage accessibility. The anticipated market dynamics foretell a potential condo market contraction of around 15 percent in the current year and a broader residential market dip of 1–1.5 percent, unless policy measures and industry actions catalyze a rebound later in the year, possibly up to 5 percent with supportive reforms to transfer and mortgage costs and more flexible LTV rules.
The path forward rests on a coordinated effort to translate safety assurances into buyer confidence and transaction momentum. Developers face the challenge of balancing the costs and operational demands of insurance programs, warranties, inspections, and service models with the urgent need to restore market activity. Insurance providers, lenders, and regulators must collaborate to create transparent, credible frameworks that underpin these protections, ensuring they deliver real value to buyers and do not become merely promotional promises. If successfully implemented, these measures could establish a new industry standard for resilience, accountability, and long-term value in the housing market, helping condo projects recover from the earthquake’s impact while strengthening the credibility and stability of the broader residential sector for years to come.
