Thailand Real Estate Market Trends
Market trends vary depending on location and property type. In general, Bangkok and vicinities have experienced high demand for condominiums while rural areas have seen increased demands for single-detached houses.
Foreign buyers tend to have higher budgets, preferring to live in main business districts and along the Chao Phraya River. It is forecast that they will contribute to 10% of total units transferred in 2023.
The housing market has been impacted by the Covid-19 pandemic. However, the impact is expected to be less severe than in 2021. This is due to a combination of factors, including a slowdown in the domestic economy and higher borrowing requirements for home purchases.
Prices and inventory levels fluctuate depending on location and property type. While Bangkok and other major cities are experiencing high demand for condominiums, rural areas are seeing increased demand for single-family homes. The COVID-19 pandemic has also influenced consumers’ preferences, with more people preferring larger homes with outdoor spaces.
Investors should consider purchasing resale residential properties that are near Skytrain stations, which offer easy access to the city center. These properties are in high demand from tourists and long-term residents. They are also likely to be more affordable than new units. Additionally, buyers should seek the advice of a local expert when making a purchase. This ensures that they are familiar with the local real estate market and can provide recommendations based on their needs and preferences.
The Commercial Real Estate market in Thailand has seen growth and development over the past few years, driven by customer preferences for modern and flexible office spaces, the emergence of co-working spaces, and the growing remote working trend. Additionally, underlying macroeconomic factors such as strong economic growth and government policies to attract foreign investment have also helped drive the sector.
Investors should consider the different options available to them when investing in Thai commercial properties. For example, individual private investors can buy condominium units (also referred to as Office Condominiums) that they can own on a freehold basis. Alternatively, investors can purchase land that they can develop themselves or register a limited company to own the property on their behalf.
According to a recent report by DDProperty, consumer sentiment remains low across Thailand due to concerns over affordability, high property costs, and insufficient savings. As such, many buyers are focusing on purchasing single-detached homes in rural areas.
Local special circumstances and favorable government policies are driving foreign investment into the country’s Commercial Real Estate market. Customers are seeking modern and well-designed office spaces that can be easily adjusted to their changing business needs, and they are also interested in locations with convenient access to transportation and amenities.
Demand for commercial property space is expected to remain strong in 2023, especially in the office and retail segments. This is due to the growth of e-commerce and changes in consumer behavior. The logistics market is growing as Chinese manufacturers in Mainland China and Taiwan expand their operations overseas, which is driving demand for ready-built factories and speculative construction.
The residential real estate market is also experiencing healthy demand, particularly in urban areas. The COVID-19 pandemic has influenced consumers’ preferences, and they are now seeking more spacious living arrangements. This is driving prices for single-detached houses in suburban locations, especially those located near Skytrain stations.
Hotels & Resorts
As Thailand’s property sector returns to normal, the hotel and resort market has benefitted from improved performance and inbound international arrivals. According to Smith Travel Research (STR), average daily rates have consistently surpassed pre-pandemic levels since the lifting of travel restrictions, although occupancy remains well below 2019.
In the residential market, investors’ confidence has increased on the back of significant and promising trends during the final quarter of 2022. However, the prolonged political uncertainty is impacting new launches of condominiums as developers are cautious to initiate projects given uncertain economic prospects.
Srettha Thavisin’s plan to stimulate the economy and prop up the flagging property market through stimulus measures has met with mixed reactions from analysts. His move to allow foreigners to purchase landed properties is likely to attract Chinese and Hong Kong buyers, which have been a major driver of the property market. Nevertheless, there is concern that the government may not be able to sustain such incentives in the long term.