DDproperty Thailand Property Market Report Q3 2022 - Powered by PropertyGuru DataSense

The real estate market has faced many challenges, such as domestic and international economic slowdown, rising construction costs, and the anticipation of higher inflation and interest rates in Q3 2022.

Despite the decline in Price Index, the challenges mentioned above are likely to raise property prices in the last quarter of 2022 or at the beginning of 2023, especially for new project launches.

Report Highlights

1. Get The Guru View
2. Thailand Property Sale Market Index
3. Thailand Property Rental Market Index
4. Conclusion

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Key Findings of the Thailand Property Market Report Q3 2022

Thailand Property Sales Market Index

Price Index decreases due to unrecovered purchasing power

According to the DDproperty Thailand Property Market Report Q3 2022 – Powered by PropertyGuru DataSense, the Price Index has consistently decreased since Q4 2020 and has dropped by 2% from the last quarter, recording a 5% decrease YoY. The Price Index is 18% lower than the base rate set in 2018, illustrating that the price trend is yet to recover since pre-COVID-19.

The Price Index for condominiums remains stable from the previous quarter despite decreasing by 3% YoY. Amongst buyers, there is greater appetite for landed properties, with the Price Index rising by 5% QoQ for single-detached houses and by 21% YoY. However, this index remains unchanged for townhouses, having increased by 2% YoY.

Landed properties increase in response to higher demand

The supply or number of residences is based on the residential property listings on DDproperty. Condominiums account for the highest figure of Bangkok supply at 82%, although this figure represents a 4% decrease QoQ. Single-detached houses make up 11% of supply, having risen by 3% QoQ, and townhouses by 7%, which is an increase of 1% QoQ.

Wattana district has the most condominium supply, accounting for 18% of the total supply. Most properties here are priced over THB15 million. Townhouse supply is concentrated in Suan Luang district, where prices are typically between THB1–3 million, while single-detached houses are in Prawet and fall within the same price bracket.

Thailand Property Rental Market Index

The DDproperty Thailand Property Market Report Q3 2022 – Powered by PropertyGuru DataSense indicates that the Rental Index in Bangkok is 9% lower than the base year in 2018. However, there are positive signs of growth from the last quarter, having increased by 1% for condominiums, by 5% for single-detached houses, and by 4% for townhouses.

Condominiums also account for the highest proportion of supply, representing 96% of total supply, with single-detached houses and townhouses equally splitting the remainder. Most rental properties fall between the THB10,000 and 30,000 per-month price bracket.

Conclusion

For buyers and long-term investors with strong purchasing power, Q3 2022 is likely to be the last chance to take advantage of the affordable prices before they increase due to higher construction costs and interest rate hikes expected at the end of the year. Also, new land appraisal prices will rise by 8% in 2023, creating another setback for buyers.

As for the rental market, even though pricing has become flat, higher rents are found in some locations outside of CBD and on Bangkok’s fringes, creating a lucrative opportunity for investment landlords. When the economy improves and tourists return, the rental market should recover in the second half of 2022.