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SUMMARY TRIS Rating expects demand for residential properties in 2021 to grow slightly from last year. Key positive factors are the low interest rate and the rollout of the Coronavirus Disease (COVID-19) vaccines. However, the rising proportion of household debt to gross domestic product (GDP) and the expansion of non-performing loans (NPLs) continue to be the primary factors weighing down the industry. Demand for residential properties, especially condominiums, was hit hard by the implementation of new loan-to-value rules in 2019 and the outbreak of the COVID-19 in early 2020. Net presales (net of cancellation and bank rejection) of condominiums of 23 rated developers dropped sharply from a peak of THB200 billion in 2018 to around THB122 billion in 2019 and THB67 billion in 2020. For 2021, the second wave of COVID-19 outbreak is expected to hinder the recovery of the condominium segment as investors and foreign buyers may not return until the end of the year. ....