DDproperty Thailand Property Market Report Q2 2022 - Powered by PropertyGuru DataSense

Economic slowdown, higher inflation and interest rates, and COVID-19-related challenges have significantly affected consumer purchasing power, keeping Thailand’s real estate market from recovering.

The DDproperty Thailand Property Market Report (Q2 2022) indicates that property prices are likely to decline as the Supply Index (the number of residential properties) has increased, particularly single-detached houses. However, vertical properties still account for much of the market supply, but these numbers are on a downward trajectory due to fewer new project launches.

Report Highlights

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

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Thailand Property Sale Market Index

Price Index continually decreases

In the first quarter of this year, real estate property prices have decreased further since the beginning of the year due to the sluggish economy. As a result, consumers have less purchasing power and have postponed buying a house or are taking longer to decide on their investment. Prices need to remain stable to attract and boost customer confidence.

The latest DDproperty Thailand Property Market Report shows that the Price Index in Bangkok is 83 points, which is a decrease of 1% QoQ and is 17% lower than the index in 2018. Therefore, pricing is yet to climb back to pre-COVID-19 levels.

Supply Index for Landed property rises

The Supply Index for landed properties has risen from 229 to 233, an increase of 2% QoQ and 13% YoY. Single-detached houses enjoy the highest growth at 11% QoQ and an impressive 40% YoY. Meanwhile, townhouses have increased by 6% QoQ and 25% YoY, while the index remains stable from the previous quarter for condominiums, having increased by 11% YoY.

Thawi Wattana is the district with the highest number of condominiums, accounting for 16% of all condominium supply in Bangkok. Suan Luang recorded the largest volume of townhouses at 8%, while single-detached houses were concentrated in Prawet district, accounting for 9% of all supply.

Thailand Property Rental Market Index

According to the latest DDproperty Thailand Property Market Report, Bangkok’s Rental Index is below average compared to its base rate in 2018. The Rental Index remains at 90 points from the previous quarter, having decreased by 6% YoY.

However, comparing individual property types, the Index has decreased by 6% for condominiums while for single-detached houses and townhouses, it spiked by 18% and 7% YoY.

Conclusion

The Price Index for condominiums has declined, while it has increased for landed properties, especially single-detached houses, due to higher demand.

Q2 2022 creates an attractive opportunity for customers with strong purchasing power to buy for owner-occupation or as a long-term investment, as prices are more affordable in Bangkok and tourist cities. Prices are predicted to increase due to rising construction costs and higher interest rates forecast for the second half of 2022.

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.