Bangkok’s housing prices remain on the rise 100% growth in 3 years

26 ก.พ. 2561

Bangkok’s housing prices remain on the rise 100% growth in 3 years

The DDproperty Property Index reveals Bangkok’s residential property price trend remains positive. This is in line with the economic recovery and improved purchasing power in Thailand. Bangkok’s residential property prices increased throughout 2017 and have risen by over 100 percent since 2015.

The quarter-on-quarter (Q-o-Q) growth rate to end the year was slower than in previous quarters as the whole country was still in mourning period.  In the last quarter of 2017 (4Q17), the Price Index climbed up from 199 in the previous quarter to 205, a 3 percent Q-o-Q increase.

Kamolpat Swaengkit, Country Manager for DDproperty

Kamolpat Swaengkit, Country Manager for DDproperty

Bullish price increase during the last 3 years
Since data was first collected in 2015, the Index tracking residential prices has recorded an impressive growth of 105 percent. Looking across different property types, condominium prices (per square metre) remain the highest when compared to landed properties, including single-detached house and townhouse prices. The Index for condominium prices reached 154 in 4Q17, a 54 percent increase from 1Q15. Townhouse prices showed market beating growth in 4Q17, rising 7 percent Q-o-Q and 14 percent Y-o-Y. Examining price segments further, the Index for prices above THB15 million showed the highest growth with a 12 percent increase Y-o-Y and 39 percent growth in the past two years.   

Chatuchak was the district with the highest growth Q-o-Q at 5 percent. Meanwhile, Bangna surpassed Phra Kanong to record the 2nd highest growth in 4Q17 with a 3 percent increase. The Index showed a 75 percent price increase in less than 3 years for Bangna making the area to watch in the long term.

“Overall residential property prices are tentatively set to continue appreciating as progress on mega infrastructure projects continues. Meanwhile, the 20-Year National Strategy (from 2017-2036) is expected to help stimulate residential developments in Bangkok and other cities, especially those in the Eastern Economic Corridor (EEC),” said Kamolpat Swaengkit, Country Manager for DDproperty, Thailand’s No.1 real estate portal and a part of PropertyGuru Group, Asia’s foremost online property company. 

Top 5 districts for property supply in Bangkok

Top 5 districts for property supply in Bangkok

Condo supply dominates the market 
The Supply Index showed a 7 percent decline in 4Q17, with the Index falling to 240. Developers moved to reduce supply in the market by using attractive promotions and special offers to stimulate demand.

Condominiums account for the highest volume of supply in Bangkok making up around 88 percent of the overall residential supply in 4Q17. Landed residential properties, such as single-detached houses and townhouses, made up a much smaller proportion of supply in the market. A possible reason for this is that landed property is often purchased for living, rather than for resale or investment.

Wattana was the district with the highest supply volume of condominiums in the last quarter of 2017, while Lat Prao and Khlong Samwa saw more townhouses and single-detached homes enter the market respectively.

No sign of oversupply in 2018 
The Index expects to see an increase in supply as a high amount of new inventory from both big and small developers are scheduled to enter the market this year. However, the property market is expected to recover slowly as household purchasing power remains under pressure from high levels of debt. Despite this, residential market oversupply seems unlikely.

“Supply will remain at high levels as many developers have several new projects in their pipeline for 2018 while take-up rates are still low. However, we don’t think this would lead to an oversupply issue as developers are monitoring the situation closely and are ready to calibrate supply, in order to maintain desired price levels,” noted Kamolpat.

“Sellers will benefit from increasing prices in the current residential property market in Bangkok. The Index has grown over 100 percent in less than 3 years. However, buyers can also take advantage of low interest rates and competitive offers from sellers and developers, who are under pressure to reduce their remaining units and release new inventory into the market,” she concluded.

To download the full report, please click here    

More insights about Bangkok property market, check out  DDproperty Property Market Outlook Report and find out how much you can afford for  your new house, try our mortgage calculators . 

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Scott Convery
May 24, 2022
Where on earth do you get 100% price growth in 3 years from? That number is complete nonsense. One example - Lofts at Ekkamai - viewed 4-5 years ago and the asking price today is barely higher than then.
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