[Special Scoop] Throughout 2016, there were countless phenomenon that happened in Thailand’s real estate industry. Majestic developments, outstanding brands, public transit expansions, and the government’s moves are some of the more notable events that we would like to recall, before turning the page on 2016 and starting the next chapter which is 2017.
Government Schemes
The government revived the nation’s property market with several stimulus schemes. First, they lowered ownership transfer and mortgage registration fees from 2 per cent and 1 per cent, respectively, to 0.01 per cent. After 2 months, the practice saw year-on-year market sales rise by 31 per cent, a decent number which implied the market had rebounded.
Furthermore, the government launched the Affordable Home Loans Campaign to help low-income buyers get their first home. The campaign’s budget was THB 32 trillion. Another significant move was Baan Pracha Rat, a, scheme that not only helped first-time buyers to have a home with price below THB 1.5 million by providing a low-charged mortgage, but also facilitated developers to clear out their stocks as well as generating market values to the economy.
In the final quarter of 2016, the government stimulated the economy with the Shopping Tax Break Scheme, where consumers could apply the shopping expenses for a discount personal income tax. Despite not being directly related to the real estate industry, the scheme is estimated to create THB 20 trillion of capital inflows into the economy or approximately 0.2 per cent of the nation’s GDP.
Outstanding Brands
Sansiri made a big impact in the industry this year with THE LINE, a new trend of condominiums within close proximity to a public transit station. Many of the brand’s projects were sold out promptly after the launch date. Sansiri also continues to be a major player in the high-end segment. The developer revealed several breathtaking projects such as The Monument Thonglor, KHUN By Yoo with world-class designer Philippe Starck, or 98 Wireless, the most expensive condo on Bangkok’s most valued road, that are waiting for official debuts.
98 Wireless by Sansiri
Golden Land Property Development PLC hit the market with Golden Town, a townhome project that offers spacious living units that seems as if you live in a semi-detached house. The developer also captured consumers’ interests with the affordable starting price of THB 1.99 million.
MahaNakhon
One phenomenon in 2016 was MahaNakhon, the luxury mixed-use skyscraper with a record height that stands as a landmark on Naradhiwas Road. Its debut gathered crowds with the media and locals watching the massive opening event that was broadcast live on social media with photos and videos. The 77-storey architectural masterpiece, developed by Pace Development Corporation Plc., features a 360-degree observation deck on the rooftop, the luxurious The Ritz-Carlton Residences on the 23rd-73rd floors, and The Bangkok Edition Hotel on the lower floors. The project’s total value is THB 20 trillion, and is expected to accommodate up to 6 million global visitors per year.
Best Location
Thonglor could be recognised as the most charismatic location among developers in 2016. It’s the heart of the city that is full of with upscale developments, trendy eateries, community malls, and completed public utilities. As a matter of fact, this cosmopolitan sphere also saw land value surged by 50 per cent, which pushed property prices here to be higher as a consequence.
New Public Transit
In 2016, the MRT Purple Line made its debut. The elevated rail that has its first phase in operation since 6th August, runs in northwest suburbs and intersects with the MRT Blue Line at Bang Sue Station. Though there’s a current issue of a one-kilometre missing route between the two lines, the authority has provided shuttle buses to deliver passengers from Tao Poon Station to Bang Sue Station at present. The missing passage is expected to be completed by August 2017.
All in all, Thailand’s real estate industry emerged through a year of struggles and stayed humble as we enter into 2017. Even though new launched projects in Bangkok declined by 10-15 per cent compared to the previous year, the year itself was still eventful and should lead to an improved market in 2017.
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