DDproperty has collected extensive data in order to analyse the state of play of Bangkok’s residential market and have concluded that we are in the midst of a weaker part of the property cycle. A disadvantage for anyone looking to offload their asset but the prime time to snap up a bargain.
Demand has lessened ahead of predictions that anticipated for this to occur in the second quarter of this year and has encouraged developers to heavily promote their units in a bid to generate sales. This window of opportunity should entice investors since competition for purchasers is fierce. DDproperty Property Index encourages buyers to shop around for the best deal to the make the most of this more sluggish time.
Simultaneously Thailand’s leading property portal has also urged developers to carry out in-depth feasibility studies before even thinking about laying the foundations for their next new project. Carrying out their due diligence will ensure that the right property is being built in a given location to be well received by the market rather than creating a glut of unwanted units.
This is particularly important since the Bank of Thailand’s new regulations might impact the market further when introduced in April which includes tighter lending. Regardless of this, the market is not completely dead and there are sectors that are performing well.
Condominiums priced over THB 8.5 million are gaining significant traction since this segment of buyers are not affected by economic issues or household debts and has helped to keep Bangkok’s overall residential prices stable quarter-on-quarter and spur a three percent increase over the course of the year.
Land prices continue to head in an upwards trajectory, a cost that is being passed onto individual investors, especially for plots close to the mass transit lines which are most in demand by developers as well as end-users.
For example, the extension of the BTS Green Line has pushed prices up in Samut Prakan by nine percent, with Bangpu sub-district increasing by a staggering 23 percent. Attention is likely to remain hot for addresses along the mass transit lines and private buyers should consider these locations before parting with their cash.