Recently there has been a real focus on single-detached houses. Many developers have shifted their strategies to meet the rising demand for this property type over condominiums that are no longer making the gains they once were.
The primary difference between these two investment assets is speculative versus real demand. Typically condominiums are purchased as a place for investors to park their money, rent out to generate an income and to receive capital appreciation when it is time to sell.
Many are bought off-plan in anticipation of making significant returns as the building completes, and often the owner does not reside in the property. On the other hand, single-detached houses are for owner-occupiers illustrating how they represent real demand.
DDproperty Thailand Property Market Index Q3 2020 identified three places outside of Bangkok to watch single-detached house price growth. These are Chon Buri, Samut Prakan and Pathum Thani.
The highest growth was found in Chon Buri having risen 13 percent year-on-year making it one of the high-potential provinces in Thailand. Its location next to the sea as a popular beach destination explains the increased appetite for the area.
However, Chon Buri also fits within the Eastern Economic Corridor thanks to its thriving industrial estates providing employment explaining why the government has earmarked it for growth. This includes several infrastructure developments including a high-speed train, road network improvements and attention to developing piers. These have already had a positive impact on the area resulting in the province’s increased demand and prices.
Samut Prakan has gained momentum due to the BTS Skytrain network’s extension into this province providing a quick and efficient means to access Bangkok’s central business districts. This has weakened the need for a weekday city bolthole rather than battle the unreliable traffic on the road explaining why condominiums have become less appealing. Plus its vicinity to Suvarnabhumi Airport has been a real draw too.
Here the median asking price has risen 4 percent year-on-year, although Bang Bo Do District within the province has risen a staggering 15 percent demonstrating the sheer interest and demand for a single-detached house here. In turn, Samut Prakan supply has increased by 38 percent year-on-year, with over half within Bang Phli District and 28 percent in Mueang Samut Prakan.
Lastly, Pathum Thani has enjoyed 3 percent growth over the last year. Housing projects have arrived in gusto as its location just north of Bangkok is primed for access to the capital thanks to the arrival of two mass transit lines. Additionally, there are various public and private investments in the pipeline of this Greater Bangkok province helping drive demand where the supply of single-detached houses has increased 31 percent.
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