Thailand’s property market has encountered various challenges that have stifled growth. From economic slowdown locally and on a larger scale across the globe, a hike in construction costs to concerns over rising interest and inflation rates. Unsurprisingly property prices have been hit as buyers are wary of committing to long-term investments and developers have been astute to this trying to lure in buyers with promotional campaigns.
Figures released in the DDproperty Thailand Property Market Report Q3 2022
reveal that the Price Index continued on a downward trend from the final quarter of 2020 and is 18% lower than when records began in 2018. For any purchaser fortunate enough to be in a strong buying position, this invariably is the time to buy. If, or rather when, interest rates increase, buying property will become more expensive.
As a result, forecasts predict prices to creep upwards in the last quarter of this year or early next, especially for new project launches that endure higher construction costs. However, this does bode well for resale projects as their lower price point will catch the interest of investors who might find themselves outpriced for new projects.
While condominium prices have remained stable over the last quarter, sellers of landed properties have seen more positive signs. Prices for this property type have increased 5% over the previous quarter, probably spurred by the appetite for landed properties also growing 11% over the same period.
However, demand for condominiums has surpassed this increasing 26%, which invariably will help push prices up. Couple this with Thailand’s reopening, which is likely to welcome back international investors and help the country’s economic recovery due to a rise in tourism; sellers and developers will regain the confidence to launch new projects, and supply is likely to increase.
The last thing to take from DDproperty Thailand Property Market Report Q3 2022 is the continued success of Bangkok’s fringe neighbourhoods such as Thonburi which is reaping the benefits of the Skytrain. Here prices rose 6% in Thawi Watthana and Wang Thanglang, and 3% in Taling Chan, which paints a positive picture given the overall state of Thailand’s property market.
Districts within the city such as Bang Rak, Huai Khwang, and Khlong San have performed at an adequate level, increasing by 2% over the last quarter. Phra Khanong has risen 1% for the same period proving that the appetite for central Bangkok living has not subsided, although increases feel a little meagre.
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