Sentiments regarding Bangkok’s real estate market show concerns about the near future due to economic factors, but express an optimistic outlook for growth in property value over the next five years, according to the results of the H1 2017 Consumer Sentiment Survey, released by DDproperty, Thailand’s number one property portal.
The survey looks at sentiments among Bangkokians, primarily first-time home buyers and upgraders, for the first half of 2017.
A majority of those surveyed (49 percent) expect real estate prices to rise by up to 10 percent in the next five years, with another 14 percent expecting prices to rise more than 10 percent. However, in addition to long-term optimism, more than 60 percent of survey respondents indicated price sensitivity today given current worries about economic growth.
“We see mixed sentiments in the survey – with people focused on economic pressures today, and expressing concerns about an over-priced market in Bangkok,” said Kamolpat Swaengkit, Country Manager of DDproperty, a subsidiary of the PropertyGuru Group. “But we also see very strong long-term optimism about the Bangkok market, and we attribute this to recognition that urbanization will continue in Thailand. This will drive demand and, ultimately, make Bangkok one of the best cities in the region to buy property, and in particular a condo.”
Consumer Sentiment Survey
The survey revealed that buyers continue to prioritize location when considering a condominium purchase in Bangkok. Ninety-four percent of survey respondents indicate location as the primary factor in their buying decision. Infrastructure, amenities and price per square meter also factor significantly in buying decisions.
A majority of those surveyed would like to see the Thai government take proactive steps to manage the real estate market. Nearly 60 percent of those surveyed said they would like to see the government address affordability issues.
“From a regulatory standpoint, we believe survey respondents liked things such as a first-time buyers program, the elimination of housing transfer and mortgage fees – and we believe people may also be seeking relief in challenges of obtaining a mortgage,” said Ms. Kamolpat.
Overall, Thai sentiments regarding the real estate market in Bangkok are trending slightly downwards from a satisfaction rate of 68 percent in 2015, 62 percent in 2016 and 57 percent for the beginning of this year.
When asked about their intention to purchase a property in Bangkok in the next six months, 43 percent of the respondents are optimistic and consider buying a residential property. The majority prefers both newly developed and resale properties – and condominiums especially.
Even with the mixed feelings about the short-term environment in Bangkok, survey respondents indicate a strong preference to invest close to home. When asked about their intent to purchase a condo overseas, less than one percent said they would do so. The vast majority said they would make their next purchase in Bangkok.
The survey, conducted every six months sampled over 500 respondents in Bangkok, and over 3,300 respondents across the region.
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