DDproprety revealed that properties along the BTS and MRT lines are still in demand among property seekers looking for places which offer convenient transportation and investors who expect both short and long-term profits. Onnut and Huay Khwang are among the top searches in the first five months of 2016.
According to property seekers’ online search behaviour on DDproperty.com based on 3.4 million users monthly in the first five months of 2016 as of 31 May 2016, properties both horizontal and vertical – along the BTS and MRT lines are still in great demand. The government’s long-term investment planning in infrastructure and economy-boosting policies, as well as the growth in the tourism sector, contributed to an increase of 3.2% in GDP in Q1/2016 compared to 2.8% in Q4/2015 (source: National Economic and Social Development Board or NESDB).
The top five BTS stations based on the searches are Onnut (asking prices range from THB1.2 – 1.5 million), Asoke (from THB3 – 150 million), Ari (from THB1.6 – 63 million), Bang Wa (from THB0.75 – 18 million), and Phayathai (from THB2.8 – 47 million) respectively. The top five MRT stations are Huay Khwang (asking prices range from THB2.5 – 9 million), Rama IX (from THB1.6 – 30 million), Lad Phrao (from THB1.2 – 17 million), Ratchadapisek (from THB1.2 – 15 million) and Sutthisan (from THB1.1 – 17 million).
However, the price of newly launched condominiums or will soon be launched, as well as resale projects, specifically the projects located in sought-after spots such as Chidlom and Thong Lor, have soared significantly following the surge of the land price, both actual market price and the adjusted land price by Department of Land. Therefore, it will be more difficult for property seekers with average income to own a property in other words properties nowadays are becoming less affordable. The purchasing power drops resulting in an increase of the number of properties listed for rent on DDproperty.com in the first five months of 2016 to over 54% from a year ago or a 9% increase compared to the previous five months. Several listed developers then revisit their target and now aiming for super high-end consumers who still have strong purchasing power.
Per capita income of Thai people has also increased, as well as their wealth. The number of Thai people whose asset is more than a million US dollars or 30 million baht (high net worth individual: HNWI) also rises by 13% a year from 2009 to 2014.
Napong Panthong, Head of Marketing, DDproperty.com, said, “The government’s measure to stimulate the real estate industry contributed to a short-term spike, helping reduce the oversupply. Leading developers today have to adjust their strategies and pay special focus on affluent property seekers or investors in the local market and overseas to help them achieve their challenging sales target by the end of the year.
