Thailand’s property market is still yet to recover. The economic slowdown, rising inflation and interest rates, and Covid-19 challenges are significant impacting factors.
DDproperty Thailand Property Market Report Q2 2022 – Powered by PropertyGuru DataSense predicts that property prices will continue downwards as the number of new residential properties, especially single-detached houses, has increased.
The amount of properties has crept up by 2% from the last quarter while prices have dipped 1%. However, vertical properties (condominiums) hold the market share despite the rising number of horizontal properties, namely, single-detached houses, built to meet the demand.
While these figures paint a far from the buoyant Thai property market, all is not lost. Buyers who are unable to secure credit due to the sluggish economy dictate much of the market, thus creating lower prices and less competition amongst buyers. Perfect for investors with capital and a long-term strategy in mind who can buy now and reap the benefits of price increases forecast for the second half of the year.
Currently, DDproperty’s Price Index is 17% lower than in 2018 and has been unable to climb to pre-Covid 19 levels suggesting that the market could have reached its lowest point. Potentially this dip is the time to buy as the next cycle is expected to head upwards.
Equally, there are some pockets of the market that are performing well, namely landed properties and those in the vicinity of the expanding mass network system. Prices have increased by 5% and 2% respectively for single-detached houses and townhouses over the last quarter, while demand for landed properties have increased an eyewatering 33% over the year.
The expanding mass transit network is playing its part too. Prices in Thawi Wattana in Thonburi have ramped up 15% over the last quarter due to the SRT Light Red Line. Taling Chan also benefits from this route, where prices have risen 7%, while the MRT Blue Line has encouraged prices to creep up 3% in Bangkok Yai from the last quarter.
Further southwest of Bangkok’s central core, prices have hiked 10% in Bang Bon, proving that the outskirts perform better than the centre since prices have only increased a mere 3% in Pathum Wan, a CBD district that typically experienced the most growth.