It will be an interesting year for Bangkok’s Real Estate Market in 2017 with the office sector expected to be strong, the residential sector looking as if it will be steady, and the retail sector needing to overcome several challenges this year. These are a few of the conclusions in the Bangkok Real Estate Market Outlook 2017 report composed by property consultancy CBRE.
Office sector continues growing in both CBD and Non CBD
The bright spot when it comes to Thailand’s real estate market is the office sector. CBRE Research expects rents to rise by 5 to 10 per cent over 2017 with healthy demand and limited new supply being the catalyst to the sector’s strong performance. High pre-leasing demand for new office stock will also continue with high-quality space limited.
Fierce competition in retail sector
The news was not as pleasant for Bangkok’s retail sector, which continues to struggle. Retail landlords will look to placemaking to draw in visitors. Placemaking aims to create a destination experience that cannot be replicated by online sales. However, competition in this segment will be fierce with only the most popular retail centres in each location expected to make it in the future.
In the residential sector, CBRE believes demand for high-end condominium projects will remain strong over 2017 but buyers will become more selective as their choices continue to expand. Demand for these projects will continue to be driven largely by Thai buyers with CBRE estimating that they will account for 85 per cent of buyers.
Surging land prices in prime areas
A number of land price records have been broken in recent years and look as if they will be smashed once again. The price of prime Central Business District (CBD) land in Bangkok will continue to increase as downtown condominium demand continues to remain strong. It is expected that prices will increase further over 2017. CBRE Research is confident that the land price record will be broken again this year in the CBD.
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