– More joint ventures and mixed-use projects to be seen in 2018
– Promising locations near Orange, Blue, and Green Lines
– Property market shows a bright future as economy starts to recover and megaprojects are progressing
– More condominiums are expected to be seen on alleys due to shortage of land by the main road
– DDproperty Property Market Outlook 2018 reveals condominium is still the most popular asset and property for aging society is a trend this year
[Special Scoop] Many gurus have confirmed that Thailand’s property market will continue to improve in 2018, with condominium still being the most popular asset and aging society becoming a major trend for developers. Besides, there will be more joint ventures between Thai and foreign companies as well as number of mixed-use developments. What’s more to be expected from Thailand’s economy and property market in 2018? Let’s find out.
More joint ventures and mixed-use projects
Real Estate Information Center (REIC) claims there will be more joint ventures between Thai and foreign developers especially with Chinese and Japanese firms, as property markets in these foreign countries are facing restraining measures from the governments. Thailand, where the property market is not too restricted and the property price is comparatively lower, is becoming a portal for these foreign companies to expand their businesses and reduce costs, mainly through joint ventures. This is a win-win situation as land price and construction cost in Thailand are expected to increase in 2018.
As land plots are running short and costlier (particularly in city’s central area, business districts, and areas near existing mass transit lines), many projects in 2018 were planned to be mixed-use developments to make the best out of the given land size. Not only the total cost of building a mixed-use project can be minimized, more channels to earn returns are therefore possible as well (office space and retails aside from residential units). Overall, there will be more residential projects in 2018 compared to the two previous years.
Promising locations near Orange, Blue, and Green Lines
Ideal locations for property development this year are those near Orange, Blue, and Green Lines, said Knight Frank, a leading real estate consultant. In 2018, BTS Green Line’s extension (Bearing – Samutprakarn) will be fully operational, and this will certainly spur residential demand in the suburban areas where the line passes through. Condominiums along this BTS’s new section are expected to gain demand from suburban citizens who commute to work in the city, whereas housing projects in the same areas are expected to show small growth due to greater distance to reach the mass transit line. The smaller land size required also makes it easier for condominiums to stand closer to mass transit lines, comparing to housing projects which need ten times a larger site.
Economic rebound and progressing megaprojects aid property market
Professional Real Estate Academy (P.R.A. Academy) points that Thailand’s property market is poised for a strong growth in 2018 as a result of economic rebound and progression of megaprojects from the public sector including Eastern Economic Corridor (EEC) Development Plan and various auctions for mass transit line constructions. Developers have been launching projects alongside new mass transit lines, particularly condominium, in hope to capture demand from citizens who commute to work in the city via skytrain.
More condominiums on small roads due to land shortage
According to the research on Thailand’s condominium market conducted by Nexus Property Marketing Company Limited, 2018 is expected to see more low-rise condominiums arising on smaller roads as lands by the main roads are becoming unavailable and extremely costly. Nevertheless, luxury and super-luxury segments are still in the trend among new and leading developers. High-end condominiums will stick to the mass transit lines, affordable by consumers with moderately high income. Meanwhile, mid-range condos will locate some distance from the city’s central area but still reachable by mass transit lines; these condominiums are likely to meet residential demand rather than investment.
Property for aging society is the trend in 2018
DDproperty Property Market Outlook, for the first time conducted by DDproperty, shows that in 2018 condominium will still be the most popular asset among property seekers and focuses on aging citizens will be found more in residential projects.
“The property market trend has changed as the nation is shifting towards aging society. Developers have been proactive about this matter even though it takes another 6-7 years for the country to fully become an aging society. Research and studies on the needs of senior citizens have also been carried out to come up with innovations which support their way of living. A greater emphasis on the design of the facilities area is one of the approaches in elders-concerned projects which, despite being an emerging trend, are becoming more prevalent in the market at the moment,” said Kamolpat Swaengkit, Country Manager of DDproperty.
Despite predictions from the experts, property market still needs to be watched closely about its trend and momentum. Make a more confident decision when buying/selling a property, check out DDproperty Property Index and DDproperty Property Market Outlook for actionable insights.
This article is written by Araya Siripyak, Content Writer at DDproperty.com. For more information, please contact firstname.lastname@example.org