The property market this year has started in good stead according to the latest DDproperty Property Index. Research reveals that the price of residential properties in Bangkok is higher for the first four months of 2019 if compared to the final quarter of 2018. In fact, prices have increased by 5%.
The prime catalyst for this is higher land prices as well as the growth of the mass transit networks that have helped to drive property prices in an upwards direction. All types of property located near to the mass transit network that is due to be operational this year, have enjoyed healthy increases suggesting the desire to be near public transportation and the impact it is having on the property market.
Astute investors are naturally eyeing up this sector since the reliance of Bangkok’s mass transit lines is becoming even stronger as residents want to avoid the traffic on the roads and travel in a more efficient, reliable and green manner.
Condominiums near to this vital Bangkok bloodline have risen by 4% from the previous quarter which is also up by 14% over the last two years. Unsurprisingly developers are continuing their focus here since they predict this is where the most amount of growth is. There is more emphasis on units priced over THB 8.5 million where this segment of buyers are not as affected by household debt and relish in stronger purchasing power too.
The Thai Government have been playing their part as well. With a budget of THB 7.6 hundred million sets aside for public sector megaprojects, public transportation is fairing well. Simultaneously the ongoing trade war between China and America has moved manufacturing plants to Thailand in a bid to avoid export tariffs.
It is forecast that interest rates for the remainder of the year will stay at 1.75% helping buyers with existing loans and those looking to expand their property portfolio. This all ties in nicely with the results from DDproperty Consumer Sentiment Survey that stated that two-thirds of interviewees are happy with the current property market.
Looking at particular Bangkok neighbourhoods that are enjoying this mass expansion of the BTS and MRT networks, is first Chatuchak that has the highest performing properties off the back of the BTS Green Line extension that in the future will interconnect with Lat Phrao station.
The next locale was Bang Khen District that also benefits from the Green Line extension and then Wang Thonglang where prices have headed upwards due to the MRT Yellow Line presence here.
The growth of Bangkok’s mass transit network is not only welcome news to passengers who use it, but it is also opening up new areas of the city which were once hard to reach. Finally, it is enabling property prices in these areas to flourish.