Townhouses and low-rise housing was popular with buyers in 2016 and it is a trend that looks set to continue according to Colliers International Thailand. The consultancy reports that units priced lower than THB 3 million in Bangkok and higher than THB 3 million along mass transit lines in the city are expected to be among the most popular types of real estate for homebuyers in 2017.
Surachet Kongcheep, Colliers International Thailand’s associate director of the research department explains to the Bangkok Post that the two segments are considered a mass market which offers a secure income base that developers can rely on.
“The condo market depends on economic conditions more than the low-rise segment does,” Surachet states. “The low-rise segment will continue expanding this year with an estimated growth of 15 per cent in new supply.”
Colliers International Thailand’s research reveals that the number of new condos being to be launched this year will likely be around 40,000 units. This is a modest rise from the 39,100 units launched last year.
Meanwhile, the Bangkok Post notes that the number of new single houses and townhouses set to be launched in 2017 will total around 15,000 units. This is up 3,000 units from the number launched in 2016. It was added that the number of single houses launched in 2015 was the lowest in six years.
Surachet adds that the housing market in 2017 will see the same rate growth as in 2016 with several key factors influencing the market. These factors include the improving economy and better purchasing power as well as the government spending on infrastructure.
“High household debt which caused banks to reject many homebuyers’ mortgage applications in 2016 may decline in 2017, due largely to the expiry of the five-year lock-up period for the first-time car buyer scheme,” he says.
Additionally, a number of other events in 2016 caused problems for the real estate market. The economy was sluggish as exports declined another year while private sector investment slowed as well.
