DDproperty revealed that demand for accommodation from millennials will continue to grow significantly. Meanwhile developers will concentrate on ‘mixed-use’ projects, and will incorporate smart home technology to enhance user experiences in response to current real estate industry trends. In Bangkok, Chatuchak, Suanluang and Phyathai are identified as high growth areas, in addition, Pom Prap Sattru Phai and Bangkae that both benefit from the extension of the MRT’s Blue line that had resulted in land prices increasing by over 36 percent.
Mrs. Kamolpat Swaengkit, Country Manager for DDproperty.com said, “We will start to see new properties equipped with technology and innovations entering the market. Simultaneously, in response to Thailand’s ageing society, there will be more development projects focused towards the elderly population. Plus, as a result of skyrocketing land prices in the central business districts, developers will protect their assets with mixed-use developments that can sustain investment yields. This includes several joint venture projects that are a success since the partners can complement each other with their individual strengths.”
“Recently, we started to see several property projects in Thailand having been developed with smart home credentials by integrating new technology into the electrics or even to control the temperature for the resident’s utmost convenience. With this evolving trend, today homebuyers not only consider the overall design and facilities, but they also take into consideration functionalities too in order to help enhance life,” Mrs. Kamolpat added.
As the country’s leading property portal, DDproperty constantly develops technology to meet the demands of buyers, investors, developers and agents, whether they intend to buy, sell or rent property. An industry first, its website and mobile apps, leverage Artificial Intelligence (AI) to make every property search a highly personalised and intuitive experience. Underpinning this are machine learning algorithms, which have been trained to recognise behavioural cues to determine the kind of properties a user is looking for and the content they are likely to be interested in. As DDproperty’s AI-powered recommendation engine learns more about each user’s unique needs and preferences, solutions will increasingly become tailored, smarter, and more accurate.
The DDproperty’s Property Market Outlook 2019 predicts that the market in the first quarter of next year will be active; a result of more buyers and sellers expediting ownership transfers ahead of the new the BoT’s loan policy becoming effective on 1 April 2019. This new policy impacts buyers buying an additional property who are repaying a mortgage for their first, plus those who purchase property over THB 10 million. Both categories of these purchasers will be required to pay a minimum deposit of between 10 and 30 percent.
Despite these new home loan regulations, developers will remain their focus on upper-end to luxury projects in 2019 since this group of buyers still have strong purchasing power. Developers will continue to roll out mid-range and high-end projects priced at THB 8 million or above, because the regulations are expected to have a small influence on consumers in these segments. In low-end segments, below THB 3 million, where the market hasn’t fully recovered from the economic slowdown and high household debt, developers will continue to launch projects in sought-after locations and prefer to build more landed residential projects where real demand usually outnumbers speculative demand in order to align their expected sales with the BoT’s new home loan regulations.
Aside from the tightening of mortgage policies, the nation’s transport network infrastructure developments will be key in encouraging property development in new areas. For example, the Bang Sue Grand Station, mass transit developments and motorways that will all facilitate access to Bangkok’s suburban areas, neighbouring provinces and the Eastern Economic Corridor (EEC).
Lastly, another important factor to consider is the impending National General Election which is expected in February 2019. Demand and supply are predicted to decline during this period as concerns have been raised about subsequent political unrest, in addition to the direction of new government policies. Nonetheless, the declines are expected to be short-term.
Full report of DDproperty Property Market Outlook 2019 is available for download here.