But for those with the means, second-home investments have proven an antidote to the impact the pandemic continues to have on society and wellbeing.

Unlike during the global financial crisis of 2008, there was no surge in distressed sales across second-home destinations. Quite the opposite: Almost 20 percent of respondents in Knight Frank’s 2021 Global Buyer Survey said they had moved since the start of the pandemic, while 33 percent said they were more likely to buy a second home soon.

“With the rise of remote working, second homes or ‘co-primaries’ are becoming a viable option for more buyers seeking a better work-life balance,” the report noted.

Low-interest rates on home loans, pandemic-era savings, and the trend for hybrid work have made it more feasible for people to live a dual lifestyle. That fundamental change in where and how people live is likely to revitalise second-home markets, which were once reliant on weekenders and seasonal visitors.

Expectations for such properties are inevitably increasing. With greater flexibility around remote working, owners are staying longer and many now view second-home properties as “co-primary” homes. So, there is a greater demand for restaurants, retail and other amenities that make urban living so appealing.

“From fast broadband to cinema rooms, gyms and A-grade technology, second homes now have a much longer wish list to fulfil,” Andrew Shirley, editor of Knight Frank’s annual Wealth Report, explains.

The last 12 months has also been a time in which the health benefits of rural and resort-style living were brought into sharper focus. Demand for homes in locations that offer wellness and wellbeing was already on the rise pre-pandemic, but the trend has been catapulted up ultra-high-net-worth individuals’ (UHNWI) agendas by the pandemic.

The 2021 Attitudes Survey conducted by Knight Frank for the Wealth Report, for instance, reveals that 26 percent of UHNWI plan to purchase a new home in 2021. Some 56 percent of respondents to the survey, meanwhile, said that clients are more likely to buy a property in a coastal or resort destination, and 47 percent in a rural location, because of the virus.

“The attraction of more space at often lower prices, at a time when people were less tethered to offices and schools, is perhaps not a surprise,” Shirley adds.

The story was different in Asia, where only 27% of those surveyed responded positively to the question. Still, the region remains a hotbed for branded residences and, increasingly, homes within integrated communities.

Recent research by hospitality consultancy firm C9 Hotelworks notes that pipeline projects in upscale segments are highly concentrated in Southeast Asia, which accounts for more than 90% of total pipeline stock. Nearly half of the upcoming supply is affiliated with luxury hotel brands.

Globally, Asia Pacific is second only to North America, the largest market by schemes until 2013, with 26% of the total supply of branded residences, according to Savills’ 2021 Branded Residence Spotlight report.

“While North America, the birthplace of branded residences, historically accounted for the majority of global supply, the sector has since diversified geographically,” says Paul Tostevin, director of world research at Savills. “Brands have spread rapidly into other global regions, particularly in Asia Pacific and the Middle East where economic growth and rising domestic wealth has supported expansion over the last decade.”

With demand for coastal, rural, and urban residences expected to continue through 2022 as other segments eye recovery, we round up some of the latest branded, integrated, and boutique resort-style properties from around the region.

Anantara Desaru Coast Residences

One of Malaysia’s most ambitious resort launches in recent years welcomed its first residents in 2020. The result of a joint venture between Minor International and local firm Themed Attractions Resorts & Hotels Sdn. Bhd (a subsidiary of Khazanah Nasional Bhd), Anantara Desaru Coast Residences is the first Malaysia-based investment by the Thai hospitality giant, placing Desaru Coast, in the southern state of Johor, firmly on the radar of both global tourists and affluent homeowners.

The exclusive 20-unit residential project, operated as part of the wider 123-key Anantara Desaru Resort & Villas, comprises three types of pool villas ranging from 3,100 to 6,426 sq ft. Aesthetics draw heavily from traditional kampong houses, designed to suit the tropical Malaysian climate with slanted carved wooden panels, louvres and vents under the roof, and French windows that offer natural airflow throughout the properties.

The seamless indoor-outdoor living spaces feature floor-to-ceiling windows, open dining and lounge areas, and spacious pool decks. Each unit is surrounded by greenery for added privacy ANANTARA DESARU COAST RESIDENCESand comes with spacious en suite bedrooms, most boasting ocean, and lagoon views.

Residents, meanwhile, have access to the resort’s signature Anantara amenities, including a spa and well-appointed fitness centre that offers wellness fanatics and adrenaline junkies a welcome respite to relax or revive. Other attractions in the area include The Els Club Desaru Coast, home to two golf courses, and countless eateries, bars, and retail outlets along the coastline.

Intercontinental Halong Bay Resort & Residences

With its iconic limestone karsts, emerald waters, and 1,600-plus islands and islets, Halong Bay is easily one of Southeast Asia’s most striking—and recognisable—landscapes. And it’s against this ethereal backdrop that InterContinental Residences Halong Bay is taking shape.

Due to debut in early 2023, the 60 luxury residences run the gamut from one-bedroom apartments to 41 standalone villas. The property, situated at the bay’s gateway Bai Chay, is part of the larger 175-key InterContinental Halong Bay Resort project. Residents, therefore, have access to a host of immersive resort facilities, including the Spa Village Garden, a multi-purpose gym, Planet Trekkers children’s playground, five restaurants, two bars, and a large conference room. Ownership also comes with inclusion in the rental program, with apartments and villas available for third-party guests to book through IHG’s global channels.

Its headline attraction may be the 580-metre private coastline with postcard vistas of the bay. But the under-construction Halong Marina is bound to elevate the appeal of the global hospitality chain’s latest luxury residences in Vietnam. Upon completion, the development is slated to be Quang Ninh province’s tourism, financial, and commercial services hub, featuring upscale retail, leisure, and entertainment outlets. Further afield, Cat Ba and Ba Be national parks offer some of the country’s prettiest hiking trails, whilst golf enthusiasts can take advantage of the stunning links at both BRG Ruby Tree Golf Resort and FLC Ha Long Bay Golf Club & Luxury Resort.

More: 6 of Asia’s best resorts within mixed-use developments

Istani Villas

Hidden amidst the elevated greenery of Koh Samui’s Chaweng hills, Istani Villas strikes a slightly different tone to the resort island’s typical luxury accommodation. Sure, the exceptional sea views are there, as are the indoor-outdoor living concept-accentuated by full-length floor-to-ceiling windows-and custom wood fittings and cream furniture. Yet Idea Development opts instead for minimalist stone facades and flat-roof terraces across each of the four 500-square-metre properties in a style it dubs “new-age tropical Thai”.

The open-plan interiors incorporate generous living and dining spaces and a fully equipped kitchen divided by a breakfast bar, transitioning onto sleek terraces with infinity plunge pools. Each of the three bedrooms is en suite, outfitted with soaking tubs and rain showers with stunning sea views.

Remote as the villas feel, the usual upscale amenities are only moments away. Top restaurants, retail outlets, the airport, international schools, and ISTANI VILLAS hospitals are easily reached by car. Nearby Central Samui, the island outpost of one of Thailand’s leading shopping mall brands, ticks most retail and entertainment boxes. Meanwhile, culinary highlights in the area range from the hole-in-the-wall local fare to more refined beachside dining at the likes of Poppies and Samui Seafood Grill.

Seafront Residences

Luzon’s San Juan isn’t traditionally the first resort destination that comes to mind when second-home buyers eye the Philippines’ countless coasts. Often overshadowed by Boracay, Bohol, and Palawan, the sleepy municipality on the western shoreline of the archipelago nation’s largest island is better known for historical sites and religious attractions than its upscale investment opportunities. But Cebu-based boutique developer AboitizLand aims to transform the area’s appeal with the launch of its debut Luzon residential development Seafront Residences.

Located in Barangay Calubcub II, the ambitious 43-hectare beach community will comprise 800 residential units enveloping a new town centre and integrated green belts upon completion later this year. The brainchild of internationally renowned Filipino design firm Budji+Royal, Seafront Villas is a cluster of one- and two-bedroom beachfront condominiums-the latter with gardens-and three-and four-bedroom detached villas, some with views of Tayabas Bay and Mount Banahaw. The neighbourhood SEAFRONT RESIDENCESstructure is designed with pedestrian walkways that interconnect lifestyle amenities ranging from a beachfront clubhouse to swimming pools to a multi-purpose sports court.

In recent years, San Juan has become particularly popular with young people from Manila making the five-hour journey from the capital in search of sun, sea, sand, and some of the country’s best surf. Nature, meanwhile, extends beyond the waves to the hiking trails around Tangadan Falls in the neighbouring town of San Gabriel. Although retail, education, and healthcare offerings remain relatively limited in the nascent destination, upcoming development plans suggest this won’t remain the case for long.

More: 5 of the best resort style residences in Asia

Toba Lake Villas

Toba Lake Villas aims to transport the ambience and tranquillity associated with the namesake volcanic lake in the heart of Sumatra to urban East Jakarta. Set on the banks of a 15-hectare lake with sweeping landscaped vistas, the flagship luxury residential component of the master-planned ASYA community feels far removed from the notorious sprawl of the Indonesian capital.

Connectivity and convenience are key, however, to the popularity of this emerging locale, which is easily accessed from the Jakarta Inner Ring Road. The bustling Kelapa Gading and Jakarta Garden City townships are only moments away. Other doorstep amenities include AEON Mall and IKEA, a host of international schools, and world-class healthcare facilities. Closer to home, residents have access to two onsite clubhouses, complete with a top-of-the-range fitness centre, spa, sports courts, an infinity pool embedded into the bank of the lake, and acres of green space dedicated to cycling, jogging, and mindful pursuits such as yoga.

Each of the 94 four-storey properties capitalises on the immediate scenery with floor-to-ceiling windows and spacious balconies. Secluded gardens, meanwhile, enhance the privacy of the villas, which are accessible via smart digital door locks. The property also features an around-the-clock guarded-gated system for added security and peace of mind.

Canterbury Golf Villas

Cricket may well be a national obsession in Sri Lanka, but golf is increasingly finding a place in the affections of both locals and visitors on the “resplendent island”. One of the more recent additions to the burgeoning scene, the nine-hole course at Canterbury Golf Resort Apartments and Residencies functions predominantly as an attractive backdrop to what developer Homelands Skyline claims is the country’s largest residential project to date.

Located just 20 minutes from the capital city Colombo in Piliyandala–Kahathuduwa, the 30 landscaped acres will be home to 1,200 units upon completion in 2024. The latest phase, Canterbury Golf Villas, is undoubtedly the more eye-catching of the two residential components. Home to 163 two-storey pool villas across four distinct categories, the properties are designed with a contemporary nod towards the country’s colonial heritage buildings. Think sleek rows of monotone facades, equipped with slanted roofs, iron railings, and sun terraces. The interiors, meanwhile, are characterised by exposed beams, brick feature walls, and high-spec wood fittings throughout.

Amenities-wise, the golf course, pro shop, and training centre are inevitably the drawcards. But activities ranging from cycling to swimming to court sports, including basketball and tennis, are all catered for inside the gated community. Beyond the fairways, the bright lights of Colombo are within easy reach thanks to the property’s proximity to the main expressway.

The original version of this article appeared in Issue No. 170 of PropertyGuru Property Report Magazine. Write to our editors at propertyreport@propertyguru.com.

Its e-commerce market is one of Southeast Asia’s fastest-growing, with gross online product value increasing by 68 percent last year and is projected to go up 14 percent between 2021 and 2025, as noted by East Asia Forum.

Thailand prioritises digital economy through efforts such as its industrial transformation policy and the digital park in the Eastern Economic Corridor (EEC). The government also announced new investment incentives to attract investors into tech-oriented activities and the 20-year National Master Plan for Digital Development (2018–2037).

PYMNTS reported that the Bank of Thailand (BOT) outlined initiatives that prepare the financial sector for a sustainable digital economy. These open and virtual banking provisions would be implemented at the end of the year. 

Key policy directions consist of leveraging technology and data to drive innovation; managing the transition to a sustainable and digital economy; and shifting from stability to resiliency in terms of supervisory framework and safeguarding the financial system.

MOre: Thailand to experience post-Covid boom in real estate and tourism sectors

Meanwhile, Mr. Abel Deng, CEO of Huawei Technologies (Thailand) Co., Ltd., gave a speech at the Go Green 2022 event about the importance of sustainable development and digital technology, according to the Bangkok Post.

He emphasised how Thailand (and the rest of the world) can benefit from digitalisation. The key drivers of economic growth will be digital technologies, such as 5G, cloud, and AI. It also plays a huge role in green development.

Huawei has made efforts to manage carbon emissions in Thailand and internationally by committing to making products 2.7 times more energy-efficient. The tech giant also noted four important digital power solutions for Thailand: 4th generation solar power technology; Smart String Energy Storage systems (ESS); green data centres and 5G base stations; and economical EV and super-fast charging technology.

Digital technology in Thailand has been more widely applied in the services sector, especially in financial services, mobile phone and internet services, and online wholesale and retail trade.

The Property Report editors wrote this article. For more information, email: propertyreport@propertyguru.com.

“We are getting close to the end of the tunnel. It is a transitional period with fluctuations. If we can make it through, we should be able to ride Asia’s economic growth wave, which can be prominent in the global economy after 2024.”

Kobsak also shared that the obstacles currently faced by the country include the inflation of oil prices, which, in turn, affects the value of real estate development. The prices of construction materials, on the other hand, gained rapidly since last year.

According to Sakkapop Panyanukul, senior director in the economic and policy department at the Bank of Thailand, inflation will increase by more than 2 percent during the first half of 2022, which is a 0.3 percent increase from an earlier forecast of 1.7 percent.

A fluctuation in the financial system and technological disruption are also factors, to which Kobsak said, “They should digitise and improve their business, reduce costs and lock in interest rates for financial costs.”

More: The state of Thailand’s residential real estate market

Another key driver would be tourism, which is expected to rebound by the end of this year.

The country’s tourism sector, which made up about a fifth of the economy before the pandemic, was devastated by the Covid outbreak.

From 1 to 17 February, air passengers went up by 134 percent year-on-year. This number was mostly driven by international travellers, which increased by 688 percent to 230,000.

“A target of 5 million travellers this year is possible, with the potential of reaching 20-25 million next year,” said Kobsak.

Thailand’s economy could grow by 3.5 percent to 4.5 percent this year if there is a recovery in domestic demand, continued growth in exports, and return of foreign tourists according to Bloomberg.

The Property Report editors wrote this article. For more information, email: propertyreport@propertyguru.com.

From 2022 to 2024, Senior Executive Vice-President at Bangkok Bank Kobsak Pootrakool said that the kingdom will be welcoming a new economic stage after the two-year slump. 

He also mentioned the forthcoming end to the pandemic and noted that the transition stage will be fraught with fluctuations. “If we can make it through, we should be able to ride Asia’s economic growth wave, which can be prominent in the global economy after 2024.” 

Pootrakool, who also served as a minister to the Prime Minister’s Office, added: “It’s time to reinvest in the property sector. The new Omicron variant will likely ease by the end of next month because of mass vaccination.”

In the DDproperty Thailand Property Market Report Q1 2022 - Powered by PropertyGuru DataSense, Country Manager Kamolpat Swaengkit also shared her enthusiasm, commenting that the “reduction of transfer ownership fees to 0.01 percent for both new and secondhand properties, and the relaxing of LTV policies allowing buyers 100 percent loans with low-interest rates should help bolster the market.” 

Local property developers have echoed the same sentiment since the fourth quarter of 2021, confident that the market will bounce back in no time. 

In the same period last year, Acting Director-General of the Real Estate Information Centre Vichai Viratkapan said the catalogue of residential developers increased to 52.0 from 47.1 in the previous quarter. 

“An index below the median of 50 means developers are not confident,” explained Viratkapan. “The last time the index was 50 or higher was the first quarter of 2019. After that, the reading dropped below 50 because of the lending curbs effective from April 1, 2019.” 

Optimism has indeed spread throughout the trailblazers of the industry, with the distinguished winners of the 16th PropertyGuru Thailand Property Awards spearheading the progress by launching more projects in 2022.  

AP Thailand, whose CEO Anuphong Assavabhokhin nabbed the acclaimed Real Estate Personality of the Year title, will be unveiling 65 new projects valued at THB78 billion combined, the biggest recorded so far in the market this year, with the cost of units ranging between THB1.8 and 50 million. 

Best Developer Sansiri has also revealed its plans to build THB150 billion worth of residential projects from 2022 to 2024. 

Other award-winning developers preparing for recovery include Best Developer Phuket Utopia Corporation Co., Ltd., Best Developer Eastern Seaboard Maneerin Property, Best Hospitality Developer Habitat Hospitality Co., Ltd., Best Boutique Developer Habitat Group Co., Ltd., and Best Breakthrough Developer Andaman Asset Solution Co., Ltd. 

These new launches come at a time when Colliers International Thailand forecasts surge of 33.7 percent to 33,569 new condominium units in Bangkok, reported Nation Thailand. 

More: 17th PropertyGuru Thailand Property Awards programme opens as real estate market sets forth on path to recovery

CBRE Thailand expects the strong demand for bigger condo units in the resale market to remain in 2022. Praphinleeya Phuengkhuankhan, head of the residential sales ad hoc team, said: “Most of the buyers in the resale market are end-users purchasing a unit for their own use rather than speculating for short-term profit.” 

As for the hospitality sector, JLL said the investment continues to be persistent, with the property consultant predicting the sales volume in 2022 to be 30 percent higher than the 10-year median pre-Covid levels for the second year in a row. 

Last year, 23 hotels sold roughly 3,000 keys for a total of THB13.2 billion, skyrocketing from THB1.9 billion in 2020 and THB6.3 billion in 2019. The tally was 30 percent greater than the 10-year average pre-Covid levels between 2009 and 2019. 

“The number of hotels being sold this year will be lower as most of them will be bigger in size with over THB1 billion per deal, compared with THB500 to 600 million on average last year,” clarified Chakkrit Chakrabandhu Na Ayudhya, executive vice-president of investment sales for Asia at JLL Hotels & Hospitality Group. 

More: Thailand sets forth on path to recovery

When it comes to the industrial sector, Colliers found that warehouses and factories will grow consistently this year, especially built-to-suit facilities and warehouse farms, as e-commerce demand continues to grow, and as foreign investors express their interest to invest in diverse sectors across the country. 

“The pandemic keeps boosting online shopping,” said Phattarachai Taweewong, director of research and communication at property consultancy. “Logistics centres and factories of e-commerce business and consumer product entrepreneurs have been expanding since 2020 due to high demand.” 

The retail market, on the other hand, will be seeing the completion of bigger new projects in Greater Bangkok since juggernaut retail developers are still looking for opportunities to expand to inner-city areas and on the outskirts. 

“Large players like international brands will keep requiring more rental spaces,” concluded Taweewong. 

Know of any award-worthy residential, commercial, or industrial projects in Thailand? Nominate them for the 17th annual PropertyGuru Thailand Property Awards on or before 9 September 2022. To know more, visit AsiaPropertyAwards.com/Award/Thailand/.  

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: gynen@propertyguru.com. 

Unsurprisingly, for the first quarter of 2022, the Price Index has decreased with expectations that it will remain stable while the Supply Index has risen as buyers put off buying property. This is according to data collected for the DDproperty Thailand Property Market Report Q1 2022 - Powered by PropertyGuru DataSense Developers have responded to this lacklustre start of the year by offering strategic promotional campaigns to entice buyers and offload their stock. Some even allow buyers to move into the property first before paying instalments.

Despite this stagnant outlook, there are incentives to lure buyers to part with their cash. Transfer ownership fees have been reduced to 0.01% for new and secondhand properties, and the Bank of Thailand has further eased the loan-to-value (LTV) ratio for mortgage lending to allow homebuyers to borrow loans of up to 100%.

Buyers and Investors in a sound financial position and with a long term strategy in mind should take advantage of this and the lower prices.

Districts to Watch

An appetite for locations outside of the CBD continues in the first quarter of the year. Bang Khae districts prove to be the most lucrative (Price Index +9% QoQ) locales due to their vicinity to the Blue Line of the MRT, indicating that the power of the access to the mass transport network is as strong as ever.

Additionally, consumers have continued to set their sights on landed properties, which has a detrimental effect on the condominium market as prices for this property type have decreased. Prices have slumped 1% from the last quarter and 10% year-on-year. At the same time, there has been a 9% hike in demand for landed property.

Prices for single-detached houses have headed upwards, increasing 5% from the last quarter and a healthy 13% year-on-year indicating that developers and sellers are responding to real demand.

Despite a downward trend for lateral living, one point to note is that most condominiums were in the Wattana district, which accounted for 15% of all Bangkok condominium supply. Here space is at a premium due to a scarcity of land, therefore high rise residential schemes are the only feasible solution.

Meanwhile, most townhouse supply was in Klong San district and single-detached houses in Rat Burana district. Both these districts are in Bangkok's suburbs and not downtown addresses like Wattana, suggesting that buyers are heading out of central Bangkok to capitalise on space as they choose to buy a house in the suburbs rather than a condominium unit.

So while the condominium market has taken a bit of a shunt recently, it will be bolstered by anyone with a desire to live in Bangkok’s CBD to avoid commuting and to enjoy easy access to the city’s attractions. Benefits that landed homes in the suburbs cannot compete with.

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But as year three of the pandemic begins, Thailand remains in a quagmire with its property market reckoning with another iteration of the virus.

Reopening remains a fraught issue for the tourism-dependent economy, which had been predicted to grow by just 0.9 percent in 2021.

Through a carefully coordinated system of quarantine exemptions and sandbox schemes, the kingdom tentatively welcomed over 400,000 tourists. The total far trailed the 6.7 million arrivals recorded in 2020. Nonetheless, it offered an existential boon to consumer sentiment.

To intubate the real estate sector, the central bank in October started bending loan-to-value (LTV) rules, allowing buyers of second and third homes to take out mortgages equivalent to 100 percent of the property value. The eased curbs stood to catalyse speculative activity in investment-class condominium units. But macroeconomic fundamentals stayed problematic.

Purchasing power has out-and-out slumped, with household debt soaring to 89.3 percent of the GDP as of Q3 2021. In a recent survey by property portal DDproperty.com, around 66 percent of consumers have cited loss of income as a deterrent to purchasing a property.

Destinations like Phuket remain highly coveted among second-home investors.

could ask the government for anything, it’s to help support the economy to get back to normal,” says Jeremy O’Sullivan, head of research and consulting at JLL Thailand. “We need more thoughtful efforts to help businesses start producing, exporting, and employing more people. There has to be a much bigger focus than finance.”

Condominiums are oversupplied and overpriced because of speculative demand from investors during pre-Covid-19 times. New projects must be priced realistically for the local market to sell

Developers have focused on delaying launches and clearing condominium stock, 728,000 units of which have stagnated in Bangkok alone, according to JLL. Having inundated the market with launches before 2019, developers have attempted to stimulate it with up to 30 percent in discounts as well as waived shrinking funds, among other gimmicks. Bangkok condos of all grades averaged at a price of THB105,279 (USD3,130) per sqm last year, with new launches fetching around THB80,000 per sqm.

CBRE Thailand believes it will take up to two years to clear unsold inventory. The absorption rate of unsold units has decelerated to 6,000 to 7,000 units per annum.

“Condominiums are oversupplied and overpriced because of speculative demand from investors during pre-Covid-19 times,” says Artitaya Kasemlawan, head of residential sales project, advisory, and transaction services at CBRE Thailand. “New projects must be priced realistically for the local market to sell well.”

Developers are keeping themselves solvent by segmenting property seekers with almost laser precision. Low-rise housing priced at THB3 million to THB15 million as well as affordable, commuter-focused condominium developments are rewarded with impressive sales rates nowadays, report JLL and CBRE.

Tourism is slowly returning to Thailand, but numbers pale in comparison to pre-pandemic times.

“The ones that are doing well have been very well tailored by the developers to meet a very specific demand category,” says O’Sullivan. “There has to be a loser somewhere, and the loser will be the person and landlords that have not optimised their property to meet a very specific demand group.”

The luxury market appears inoculated against pandemic-induced headwinds. Residential properties priced between THB5 million and THB15 million decreased their supply year-on-year in 2021 while their more affordable counterparts increased, according to DDproperty. With price points now a little under THB300,000 per sqm on average, super-premium Bangkok condos have never been more beguiling, JLL data shows.

“We predict that the premium, the super-premium, and luxury type of properties will be the first to see a positive return of activity,” predicts O’Sullivan. “The performance of mid-level or more affordable kinds of units are directly tied to economic recovery because it’s very much dependent on salaried workers.”

“Luxury buyers invest when there is an opportunity for getting a good deal on an attractive project in a prime location,” says Artitaya.

In a bid to lure high-net-worth individuals, pensioners, digital nomads, and skilled professionals from overseas, the Thai cabinet approved in September a stimulus package offering 10-year visas and other privileges to those who can invest at least USD250,000 or USD500,000 in real estate or their equivalent in government bonds and foreign direct investment.

But with travel restrictions tethering the Chinese to the mainland and Thai developers refraining from overseas sales roadshows, impact from the scheme would be minimal at best initially, according to O’Sullivan. “The price points are typically not the target of the Chinese investors, which were the single biggest international buyer category pre-Covid.”

The reopening efforts were nonetheless able to pique international interest in the kingdom’s resort destination properties. After the sandbox model launched in Phuket in July, CBRE Thailand reported having fielded numerous inquiries for vacation or second-home properties from foreign residents, expatriates, and tourists. By November, tourism authorities announced more confident strides towards open borders, letting vaccinated people from over 60 countries skip quarantine under the “Test and Go” scheme.

Prime office space in Bangkok is expected to perform well as workers demand better quality spaces and facilities in the ‘new normal’ era.

Still, the proportion of foreign buyers in the housing market stood at just 10 percent —”not significant” enough, concedes the Real Estate Information Centre (REIC).

“The economy and the real estate markets are very sensitive. They want to see a light at the end of a tunnel,” says O’Sullivan. “And by the government setting this path, even though it’s not hitting the figures exactly, it’s keeping the industry positive, which I think is the best impact it’s having so far.”

Bangkokians and other locals (those with the means to do so anyway) have learned to retreat to the fringes of the Thai capital where they can work in space and privacy from their single detached homes.

The price index for landed residential properties last year rose 13 percent from Q3 2019 or well before the pandemic while that of condominiums plummeted 16 percent, according to DDproperty. Median asking prices hit THB40,000 per sqm in the subdistrict of Thawi Watthana alone, posting a record 83 percent annual price growth.

“Locations with the highest price growth are in Bangkok suburbs because most landed properties in these areas are more affordable for the majority,” states Kamolpat Swaengkit, country manager of DDproperty.

“In addition, the expansion of BTS and MRT routes makes traveling to the city much more convenient.”

With 460 kilometres of mass transit lines poised to go online, Greater Bangkok could soon rival the London Underground in sheer length halfway through the decade. The pandemic will surely have been defanged by then.

Prime office space in Bangkok is expected to perform well as workers demand better quality spaces and facilities in the ‘new normal’ era.

Should the government’s vaccination drive and reopening efforts succeed, new home sales could climb back to pre-pandemic levels in 2023, predicts the REIC. But as previous waves of the disease have shown, caution is the only real safety net in the pandemic era.

With many expats having left, rental suppression reigns supreme in large swathes of Bangkok. “Rental yields are going to take years to recover,” says O’Sullivan.

“Capital gain has always been a tough one in Thailand,” he adds, “because the resale market is quite difficult, and new supply has typically been favoured by Thai buyers. It’s not always true, but it’s a trend we do see.”

Over the next year, end users will be the key demand group for residential Thai property. It thus falls on buyers to view their purchase through the prism of an owner-occupier.

“Buy it because you enjoy it yourself,” says O’Sullivan. “I think it’s the message at the moment.”

The original version of this article appeared in Issue No. 170 of PropertyGuru Property Report Magazine. Write to our editors at propertyreport@propertyguru.com.

Or, if you prefer to keep a copy for yourself, download the PDF report here:

The fifth wave of COVID-19 infections has officially become the first challenge of 2022. Signs of an economic slowdown remain while weak purchasing power still hinders the real estate market.

In Q1 2022, the Price Index has decreased from its base rate and is forecast to remain stable in the next quarter. Meanwhile, the Supply Index (numbers of available residential properties) from last quarter has risen for all properties.

In addition to our usual Price and Supply Indices, the latest edition of the DDproperty Thailand Property Market Report will also feature the Demand Index that will cover both the sale and rental markets. Based on strong interest via advanced inquiries for listings captured on DDproperty, the Demand Index enhances the report with a comparative look at sale and rental market performances, offering meaningful insights into current price movements as well as supply-demand trends.

The report also adopts a new baseline quarter of Q1 2018, moving forward from the previous baseline of Q1 2015 to more accurately reflect price, supply, and demand trends in the contemporary market environment.

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

Read the online report here:

Get The Guru View

Thailand Property Sale Market Index

Declining real estate Price Index

The Price Index of residential property in Bangkok stood at 84 points, a decrease of 1% from the previous quarter.

The Price Index for condominiums declined by 1% QoQ and dropped by 10% YoY. However, it headed in the opposite direction for single-detached houses, increasing 5% QoQ and 13% YoY. For townhouses, the index rose by 1% QoQ while remaining stable YoY.

The Supply Index for landed property continues to climb

The Supply Index has increased from 223 points to 229 points, a rate of around 3% QoQ and 23% YoY. Landed properties account for much of this supply as the index for single-detached houses hiked by 7% QoQ and 42% YoY. At the same time, the supply of condominiums rose by 3% QoQ and 21% YoY. Meanwhile, the index for townhouses remained stable from the previous quarter, but it climbed a staggering 32% YoY.

Most condominiums are in the Wattana district, representing 15% of Bangkok condominium supply. Khlong San district was the locale for most townhouses, accounting for 8% of supply, while most single-detached houses are in Rat Burana district, also accounting for 8% of supply.

Thailand Property Rental Market Index

According to the latest DDproperty Thailand Property Market Report, the Rental Market Index in Bangkok decreased from 93 to 90 points or by 3% QoQ and 9% YoY, equating to a 13% slump pre-COVID-19.

Conclusion

2022 remains a lucrative time for buyers with strong purchasing power to buy, whether to live in or as a long-term investment.

Lower prices and other favourable factors including government policies of lower ownership transfer fees for both new and resale properties, and the Bank of Thailand relaxing LTV rules for mortgages allowing first home buyers 100% loans for properties over THB10 million and for second homes.

As for the rental market, the Rental Price Index has slumped. However, with the lockdown easing, reopening of businesses, rental demand is likely to increase.

For more insights and analysis, read the full DDproperty Thailand Property Market Report Q1 2022 - Powered by PropertyGuru DataSense report:

Or, read our previous Property Market Index Reports here:

DDproperty Thailand Property Market Index Q4 2021

Collection • November 2021

DDproperty Thailand Property Market Index Q3 2021

Collection • July 2021

DDproperty Thailand Property Market Index Q2 2021

Collection • May 2021

DDproperty Thailand Property Market Index Q1 2021

Collection • February 2021

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DDproperty Thailand Property Market Index Q4 2020

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DDproperty Thailand Property Market Index Q3 2020

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DDproperty Thailand Property Market Index Q2 2020

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DDproperty Thailand Property Market Index Q1 2020

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DDproperty Thailand Property Market Index Q3 2019

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DDproperty Thailand Property Market Index Q2 2019

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DDproperty Thailand Property Market Index Q1 2019

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DDproperty Thailand Property Market Index Q4 2018

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DDproperty Thailand Property Market Index Q3 2018

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DDproperty Thailand Property Market Index Q2 2018

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DDproperty Thailand Property Market Index Q1 2018

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DDproperty Thailand Property Market Index Q4 2017

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DDproperty Thailand Property Market Index Q3 2017

One of the latest of these speculative wish lists, this time by Bloomberg, offered a curated roster of destinations to capture the imagination of travellers who have largely been locked down in their home countries for the last two years.

Some of its selections in its “Where to Go 2022” line-up certainly carry about them a heady dash of the exotic.

Notable picks included Uruguayan fishing village Jose Ignacio, which is known for its booming gastronomic scene, glamping in Argentinean Patagonia, and surfing in a 3-million gallon wave pool in the soon-to-open Palm Springs Surf Club in California’s Coachella Valley.

So far, so thrilling. But some choices were—at first glance anyway—less obviously pulse-quickening.

To those familiar with Thailand, Hua Hin’s reputation as a stolid yet relatively unexciting beach destination popular with foreign retirees and weekenders from Bangkok precedes it.

Yet its inclusion in Bloomberg’s list of the globe’s hottest travel spots is indicative of a change in emphasis that has gathered pace under cover of the global health crisis.

With young Bangkokians snapping up luxury property and trendy hotel brands like The Standard debuting, Hua Hin is experiencing a radical image makeover.

“We are enchanted by Hua Hin’s history and the sense of subtle Thai elegance noticeable throughout the town,” says Amar Lalvani, executive chairman of Standard International. “We are excited to introduce the Standard’s unique vibrancy and sensibility to Hua Hin while introducing Hua Hin to our clientele who I believe will fall for its charms as well.”

Famed for its long sandy beach, Hua Hin has been a retreat for Thailand’s royal family since the early 20th century. Just a three hours’ drive from Bangkok, the resort town has retained its popularity over the years: a convenient location, a decent selection of hotels, championship golf courses, and a relatively sedate atmosphere compensating for the rather murky ocean water and a slightly geriatric feel.

But things have accelerated fast in Hua Hin’s favour during the pandemic. With periodical lockdowns sucking the life out of the big city, nature-starved Bangkokians have been snapping up luxury condominiums and beach villas en masse, noticeably lowering the area’s median age and increasing its cachet.

With young Bangkokians snapping up luxury property and trendy hotel brands like The Standard debuting, Hua Hin is experiencing a radical image makeover

Thai real estate insiders have noted this uptick in interest from wealthy Thai buyers and expats living in Bangkok. They attribute the shift to the pandemic, saying that investors are increasingly cognisant of the benefits of personal space and a healthy lifestyle—key selling points for luxury property in Thailand’s idyllic beach destinations.

More: Cambodia’s local heroes liberate the capital’s condo sector through growing investments

“We are about to start a new cycle,” says Bill Barnett, founder and managing director of C9 Hotelworks and chairperson of the PropertyGuru Asia Property Awards (Greater Niseko) judging panel. “The pandemic has brought about a dynamic shift in a holiday home or second home properties. Call it urban angst but lifestyle property for Thais has become hot again. We have seen a big rise in domestic transactions in Hua Hin.

“These are likely to benefit resort-style residences. Also vital is the enduring appeal of Thailand, which offers a great lifestyle, access to international schools, top-class medical facilities and fantastic links within the region.”

The unveiling of US hotel brand The Standard in Hua Hin late last year is indicative of the town’s growing credibility

The trend for buyers seeking a lifestyle reset is clear in Hua Hin where property developer Tjeer Kwant, chief executive of Banyan Residences, a luxury villa development just outside the town, says there has been a significant rise in buyers looking to escape the city and enjoy a healthier, active lifestyle.

“This for us has been the key driver with families and couples looking for spacious second homes outside Bangkok,” he says.

Kwant said that transaction values at Banyan Hua Hin had—as of September 2021—surpassed THB125 million.

It’s not just Thai and western expat buyers who are likely to fuel future interest in Hua Hin and other beach destinations in Thailand. Chinese visitors are likely to be conspicuous by their absence this year as authorities in Beijing continue to pursue a “zero-Covid” strategy. But restrictions on travel won’t prevent covetous buyers from casting their net towards Thailand.

More: Second-home investment destinations take the spotlight in Thailand

With the pandemic still stubbornly hanging on in Thailand, Hua Hin is not yet overflowing with energy. Nevertheless, the seductive rhythms emanating from the DJ booth at The Standard’s chic beach bar prove that the destination is dancing to a subtly different beat from before.

To the south of the town, on the beach of Khao Tao, acclaimed chef Jutamas “Som” Theantae—formerly of Karmakamet Conveyance in Bangkok—is working culinary magic at Som’s Table, her new beachside venture. Soon Teens of Thailand, one of Bangkok’s best cocktail bars, will open an offshoot in Hua Hin.

While the pandemic has been poison for many of Thailand’s beach destinations, Hua Hin appears to have found the antidote by positing itself as “Bangkok-on-Sea”.

The original version of this article appeared in Issue No. 170 of PropertyGuru Property Report Magazine. Write to our editors at propertyreport@propertyguru.com.

Following a decline since the first quarter of 2020, new home costs are on the rise due to higher inflation, a labor shortage, and rising fuel and construction material prices.

“In 2022, we expect to see property prices go up by 3-5 percent,” Apa Ataboonwongse, chief executive officer at Richy Place told The Nation Thailand. 

“Developers cannot maintain the same prices despite management cost having reduced over the past year. Also, due to COVID-19, most migrant workers have returned to their countries, causing labour shortage,” she added. “This, in turn, has spiked the manpower cost and delayed most projects by 10 to 20 percent from their previous schedules.”

A domino effect has occurred within the global supply chain. According to Bangkok Post, delays in shipping and supply shortages are the main reasons for the non-delivery of exported materials.

More: Second-home investment destinations take the spotlight in Thailand

There will be a significant increase in construction material prices this year, particularly steel, which has risen 30 percent.

The Bureau of Trade and Economic Indices also noted the price increases for concrete (5.6 percent), aluminium, asphalt, and sand (4.2 percent), as well as electricity and water (3.8 percent).

Wichai Wiratkaphan, acting director of Government Housing Bank’s Real Estate Information Centre noted that developers will be offering fewer discounts and promotions as demand matches supply in the property sector. 

Marketing campaigns were used extensively last year due to the impact of the pandemic on consumer confidence. 

Freebies were the most popular promotion for enticing low-rise homeowners in the fourth quarter of last year, accounting for 44.4 percent. Air conditioners, furniture, drapes, water pumps, and water tanks were among them.

This was followed by cash discounts as well as transfer fees and common area expenses, which accounted for 28.8 percent and 26.7 percent, respectively.

Condominiums took the brunt of the consecutive drop since Q3 2020. 

The Property Report editors wrote this article. For more information, email: propertyreport@propertyguru.com.

Honeymooners lounged under resort cabanas, families set sail for snorkeling trips and kids cut loose in the cerulean waters.

Since the pandemic shuttered Thailand’s borders, however, those same shorelines have fallen silent, devoid of international arrivals—and homebuyers.

Unlike other Thai resort destinations, Phuket’s residential property market has historically relied on overseas investors.

In 2019, foreigners purchased 90 percent of new 5,471 condominium units, according to global real estate consultancy Knight Frank. Most hailed from China, Hong Kong, and Singapore, buoyed by rental yields and second-home opportunities largely off-limits in their native countries.

Yet with travel restrictions still in place—in primary investor markets in Phuket and the rest of Thailand—the pandemic has hit the island’s property market hard. Knight Frank notes that only 1,862 units from seven condo projects hit the market last year, an annual drop of 66 percent.

Some developers have chosen to bite the bullet and pause marketing efforts. Others have slashed prices and started getting creative with their services, offering value-adds such as bespoke furniture packages and even long-stay visas like the Thailand Elite Card. But one of the most significant trends to emerge from the past 20 months is the rise in demand from the domestic Thai market.

“The pandemic has caused a dynamic shift in the second home market,” says Bill Barnett, managing director of Phuket-based hospitality consultancy C9 Hotelworks and chairperson of the PropertyGuru Asia Property Awards (Greater Niseko) judging panel. “We have seen an entirely new segment of luxury domestic Thai buyers. Call it urban angst but lifestyle property for Thais is hot again.”

International travel restrictions, worsening pollution in Bangkok, and workplace uncertainty are just some of the factors behind this surge in interest for resort properties. Wealthy urban investors are also looking to escape the city and enjoy a healthier lifestyle.

“If you look back five years, island real estate was focused on investment-type condominiums, but today, it’s single-family homes or second residences,” adds Barnett.

Hua Hin is primed to cater to this domestic investment resurgence. A two-and-a-half drive from Bangkok, the coastal town’s combination of high-end villa developments, world-class golf courses, and watersport-orientated lifestyle activities has long been a hit with international investors and retirees. Over the last 12 months, however, the domestic market accounted for 64 percent of total transactions in Hua Hin.

One Hua Hin development already benefitting from this new wave of investment is The Banyan Thailand. The resort community is best known for featuring one of Thailand’s top golf courses—designed by renowned local architect Pirapon Namatra. It is home to bespoke villas and plots, ranging from THB14m (USD429,053) to ultra-luxury options around THB80m (USD2.45m).

Most residents traditionally hail from Western Europe. But in recent years domestic investor interest has surged, with Bangkokians leading the way. Although the pandemic has inevitably accelerated this trend, the resort’s CEO Tjeert Kwant also credits it to shifting perceptions of Hua Hin.

Hua hin’s proximity to Bangkok enhances its appeal to second home investors who live in Thailand’s capital.

“The town was often viewed as a sleepy retirement destination, but the pandemic in a way has done a lot to change that image,” he says. “For instance, some highly influential bloggers, who probably wouldn’t have come if it weren’t for the border closure, visited last year and loved it, which goes to show how much it has to offer now.”

Heartened by the heightened demand for Bangkok-friendly holiday homes and the absence of foreign buyers, The Banyan tweaked its marketing strategy in mid-2020 to focus primarily on the Thai capital. As Tjeert explains: “Me being from the Netherlands, having Bangkok on your doorstep is the equivalent of a neighbouring target market the size of Belgium.”

Property developers on Phuket are also adapting product offerings to cater to the new demographic. Large condominium blocks filled with small studio units have been the market default in recent years. And while a number of these project types remain in the pipeline, mixed-use properties featuring upscale lifestyle amenities are now coming to the fore.

“We expect developers in the future to focus more on high-quality, low-density developments that offer privacy and focus on space, health and wellness as key selling points,” says Tomas Noren, managing director of Phuket property firm Resava Real Estate and former member of the judging panel at PropertyGuru Thailand Property Awards.

More: Korean President flinches as reelections near, ruling afflicted by towering real estate prices

Utopia Corporation, one of the island’s most prolific developers in recent years, has already demonstrated that the pile-them-high approach is waning in Phuket. In addition to a focus on largely low-rise residential properties, one of the company’s unique selling points has been its ability to thematically differentiate its offerings. The recently launched villa development Utopia Thalang, for instance, takes aesthetic inspiration from Japan while Utopia Yamu features Moroccan design elements.

These themed properties have long been a hit with Utopia’s investor base in China. But CEO Hachi Yin believes its diverse product mix is poised to appeal to Thai buyers.

“We started thinking about how we can start opening up to the Thai market, as we’d never targeted it before,” he says. “The Thai market is now one of our priorities for 2021, but the challenge is that, unlike in China, nobody here really knows us.”

The long-term outlook for Phuket remains positive simply because the fundamentals have not been affected by the pandemic. Property prices are still very affordable compared to many other countries and often offer great rental returns

This may change with the launch of its latest project. Located on Phuket’s sunrise coast overlooking Phang Nga Bay, the Bay of Icons is a 20-rai (3.2 hectares) development surrounding Ao Po Grand Marina. Utopia has plans to transform the area over the next five years into a master-planned lifestyle and leisure enclave. It will feature exclusive residences and Southeast Asia’s first Tonino Lamborghini-branded hotel. Other perks include a 300-berth marina and a private helipad, designer retail boutiques, and upscale dining destinations.

As with most new launches over the last two years, the true litmus test for Utopia’s ambitious lifestyle destination will be the eventual reopening of the island, buoyed by the Phuket Sandbox scheme. The program, which allows vaccinated foreign tourists to enter the island, has proven relatively successful since its unveiling on July 1. Although travel concerns and ongoing quarantine requirements in other countries will limit visitor numbers, it is at least a light at the end of the tunnel for Phuket’s property industry—and indeed other key resort markets in Thailand.

More: Beijing’s call for “common prosperity” cools down property prices in major cities, emerging markets

“The long-term outlook for Phuket remains positive simply because the fundamentals have not been affected by the pandemic,” Noren says. “Property prices are still very affordable compared to many other countries and often offer great rental returns.

“Let’s not forget that this is still a fantastically beautiful place to live with extraordinary natural resources for its residents to enjoy.”

The original version of this article appeared in Issue No. 168 of PropertyGuru Property Report Magazine. Write to our editors at propertyreport@propertyguru.com.

Beyond the rush-hour fumes on the opposite side of the road, a contrasting scene is unfolding at the neighbourhood’s newest eatery. Well-heeled diners line up outside a converted shophouse. Most made reservations months ago. The dry-aged beef dishes cost more than a day’s salary of those eating pad thai a few doors down.

For interior designer Timothy Frost, a 10-year resident of Klong San, the opening of an upscale restaurant in this “charming, community-based district” is the latest sign of change.

“There have been some alterations to the area’s ambience since IconSiam opened and the Gold Line started operating,” he says. “Luckily, there’s still plenty of space in this part of the city. Newcomers are not displacing beloved establishments. I just hope this co-existence continues and the community’s special culture remains intact.”

Previously peri-urban neighbourhoods are now connected to central business districts. Improved accessibility to the CBD soon lures investors and developers. Property prices increase and the gentrification cycle begins

Bangkok is upgrading other modes of transport in addition to its rail network, introducing electric-powered vessels to some of its busiest canal routes.

High-profile condominium launches in recently connected neighbourhoods include Ananda Development’s Elio Del Moss Phaholyothin 34 at Sena Nikhom station on the BTS Sukhumvit Line’s northern extension and The Tree Charan Sanit Wong-Bang Phlat by Pruksa on the MRT Blue Line’s second extension. In 2015 developer Sansiri partnered with skytrain operator BTS Group in a five-year joint venture to build eight residential properties worth THB30bn (US$917.7m) along the lines.

Improved accessibility to the CBD soon lures investors and developers. Property prices increase and the gentrification cycle begins. On average, land values in Bangkok increase by USD23 per square metre with every 10% decrease in distance to the nearest mass rapid transit station, according to the ADB.

“With urbanisation comes increased living costs, and a gross majority of the infrastructure endeavours are initiated and managed by private companies with the intent to make a profit-driven enterprise,” says Marciano Birjmohun, a local real estate analyst and director at the Singapore-Thai Chamber of Commerce, as well as a member of the PropertyGuru Thailand Property Awards independent judging panel. “This is quite different from other major Southeast Asian cities where the government can regulate and subsidise commuters.”

Private ownership and a limited public sector oversight have stymied any comprehensive transit-orientated development (TOD) strategy in Bangkok. In most cities, this includes land-use solutions that enhance accessibility and encourage high density, mixed-use development within walking distance of transit stations.

Some condo developments along the BTS lines do connect with stations via footbridges. Retail operator Central Group even funded one of BTS’s few elevated walkways at Ploen Chit Station—it ends abruptly at the entrance to one of its luxury malls. But by and large, these meagre instances of TOD do not benefit commuters and local communities.

Improved accessibility to the CBD soon lures investors and developer.

“Bangkok is one of the few major cities in the region that has no TOD around its transit lines,” Birjmohun adds. “Even future expansions of the Yellow, Red, Green and Orange lines lack any basic TOD integration. Footpaths are missing at some of the stations.”

In contrast to Bangkok’s dearth of urban planning, plans are afoot to transform HCMC’s eastern districts in anticipation of the arrival of the country’s first transit system.

The goal is to merge the existing hi-tech park in District 9, the Thu Duc university district, and the upcoming financial centre in District 2 to create a new and independent administrative hub likely to be dubbed “Thu Duc City”.

“Developers started acquiring sites near future metro stations several years ago, with residential properties attracting no shortage of interest,” says Dang Phuong Hang, managing director of CBRE Vietnam and member of the PropertyGuru Vietnam Property Awards judging panel.

Since 2015, high-end residential sales prices in District 2 have increased by 7.3% annually, well beyond the citywide average, according to CBRE Vietnam data. Residential supply in the proposed new hub, meanwhile, is slated to grow at an annual rate of 11.5% until 2025, equal to 15,000 to 16,000 new units each year.

More: Proptech, a mainstay in future real estate transactions

The 19.7-kilometre Metro Line No 1 will connect the district with the under-construction Ben Thanh subway station in District 1. Construction of the nine-line Ho Chi Minh City Metro began almost a decade ago. But delays, cost overruns, inability to disburse funds, and a lack of enforcement across contractors have all blighted progress. More recently, the pandemic has brought work to a standstill. Completion is now expected in 2022.

These setbacks have exasperated conditions in a city already facing rapid urbanisation, mounting traffic congestion, and pollution.

“People are holding their breath in anticipation for the completion of these lines, hoping they will be worth the congestion caused by the many road closures over the last decade during their construction,” says Thien Duong, managing director of Transform Architecture and a member of the Vietnam Green Building Council and regional chairperson of the PropertyGuru Asia Property Awards.

“It’s also harmed lots of businesses on these closed roads. For example, large sections of Le Loi, a key boulevard in the city centre, have been closed for almost five years now.”

Still, there are green shoots for business owners and future commuters. There is evidence that some stations will at least feature TOD elements.

Quach Thi Trang Square, a landmark in Ho Chi Minh city, has given way to Ben Thanh Station, which is set to be one of the largest rail transit hubs in Southeast Asia.

One notable example is the redesign of Quach Thi Trang Square. For decades, the free-for-all roundabout in front of Ben Thanh Market was visual shorthand for HCMC’s anarchic traffic. It has since made way for Ben Thanh Station, which upon completion next year will be one of the largest urban rail transit hubs in Southeast Asia. Three of the metro’s proposed nine lines will converge here. And it will feature four subterranean levels including a shopping plaza. Overground, there will be a landscaped pedestrian area and park. It is a step in the right direction for a city notorious for its lack of pavements and chronic traffic issues.

A major constraint to mass rapid transit in the region over the years is the timing of Southeast Asian megacities’ growth trajectory. Urbanisation in developing Asia began much later than in other global cities—from the 1970s to the 1990s—after the establishment of car culture. Road networks have therefore dictated urban planning.

Nowhere is this more pertinent than in Manila. The Philippine capital, a cluster of 16 cities tenuously fused by the 23.8-kilometre EDSA highway, was dubbed the world’s most congested city in 2019 by the TomTom Traffic Index. Such problems are estimated to cost the country’s economy PHP3.5 bn (US$70million) every day, according to the Japan International Cooperation Agency. This figure could rise to PHP5.4bn a day by 2035 if the situation does not improve.

The city ironically is home to Southeast Asia’s oldest surviving transit system. Opened in 1984, the Light Rail Transit is also one of the region’s busiest, with lines serving a combined 700,000 daily passengers. But the network is plagued by poor maintenance, frequent shutdowns, ineffective operating and emergency systems, and inadequate security. World Bank research from 2017 found that more than a third of the 130 light rail vehicles did not run or failed international safety standards.

Progress is being made. The two-station, four-kilometre, extension of line 2, opened in July 2021, took six years to complete. The Manila Subway Phase 1, meanwhile, is scheduled to be partially operational by 2022 and fully completed by 2025.

Manila’s traffic problems are legendarily terrible, but the capital of the Philippines is set to benefit from an extension to its existing light rail transit as well as a new subway system.

As with Bangkok and Ho Chi Minh City transit line extensions in Manila will come at a price. PropertyGuru Philippines Property Awards jury chairperson and JLL Philippines country head Christophe Vicic anticipates uneven development between neighbourhoods surrounding the new infrastructure and those further away.

“The rise in real estate prices and rents is also likely to impact living affordability within these particular areas, which may push out some current residents and tenants,” he says. “There are certainly downsides to the development of transit lines. But it can be mitigated against by adopting an inclusive and progressive approach where relevant stakeholders are equitably benefitting from these projects.”

One example is the Chamber of Real Estate & Builder’s Associations’ proposal to allocate affordable housing when developing transit-oriented developments. Hong Kong’s Rail plus Property model is another lauded formula. The approach involves the MTR conducting tenders to private players to build TOD on the stations with a profit-sharing element from sales and rental income from the projects.

“While this has been a solid financial model, it’s also a good base to review how economic gains can address the negative impacts of transit line development,” Vicic adds. “Factoring in affordable housing within the TOD or using some of the revenue to fund civic programs for the affected neighbourhoods may be a pathway to explore.”

More: Second-home investment destinations take the spotlight in Thailand

Policymakers, governments, and the private sector in developing Asia’s megacities could learn a thing or two from Hong Kong’s MTR system, widely regarded as an exemplar on implementing and extending transit systems with limited impact upon communities, the environment, and public space.

Yet, observers would agree that we are where we are. Plus, there’s no catch-all set of rules for wildly disparate cities where unique challenges range from haphazard urban planning to gross over-reliance on the private sector.

It’s impossible to be wholly positive about the construction of transit line infrastructure. It has contributed towards existing issues of inequality, uneven development, and environmental degradation. Yet when private vehicle ownership is the main alternative, it seems by far the lesser of two evils.

The original version of this article appeared in Issue No. 168 of PropertyGuru Property Report Magazine. Write to our editors at propertyreport@propertyguru.com.

So far, 13 properties valuing THB5 billion have been sold, compared to the four properties worth THB1.9 billion sold last year. 

JLL’s data tracks sale transactions of investment-grade hotels, resorts, and serviced apartments in Bangkok and Thailand’s key leisure markets.  

Chakkrit Chakrabandhu Na Ayudhya, executive vice president of investment sales at JLL Hotels & Hospitality Group Asia, says “Hotel investment activity in Thailand has recovered to the pre-COVID-19 level. We anticipate the total investment volume this year to reach THB12 billion, if ongoing deals with THB7 billion of combined value are completed by year-end as expected. This means the total investment volume for 2021 could surpass the 10-year average of THB10 billion per annum witnessed between 2009 and 2019.”

He continues, “At JLL, we have recently closed the sale of 138-key Citadines Sukhumvit 23 Bangkok and are working on more than 10 hotel deals with a combined value of over THB 17 billion. Of these, two are likely to be concluded by the end of this year.” 

Resilience in hotel investment activity this year has been driven by many factors, which include strong demand from investors, availability of investment-grade assets for sale, and the narrowing gap between buyers’ and sellers’ price expectations.  

“As the pandemic prolongs, more hotel owners including property developers and hotel operators decided to dispose one or two assets in their portfolio in order to improve liquidity. These sellers have also shown more flexibility in pricing.

On the other end, buyers have adopted a more realistic approach on price expectation, realising that light at the end of the tunnel is starting to show and discounts vary from asset to asset,” said Pimpanga Yomchinda, vice president of investment sales at JLL’s Hotels & Hospitality Group Asia. 

JLL’s observations indicate that luxury and iconic hotel assets offer little or no discount due to owners’ profiles and irreplaceable nature. The pandemic also didn’t impact these owners as much as others. 

Moreover, prices of investment-grade assets in Bangkok have remained relatively firm, compared to resort markets, and bigger discounts are witnessed in second-tier markets.  

Local high net worth families, well-capitalised corporates, and international private equity funds make up 90 percent of the number of transactions completed so far this year, as they look to establish or expand their hotel portfolio.  

By transaction value, foreign investors this year are expected to account for 62 percent of the hotel buyers in Thailand when considering the remaining hotel deals that are likely to be closed by year-end. 

Yomchinda adds, “By transaction value, Thailand’s hotel investment has witnessed a remarkable increase in foreign participation this year, particularly when compared to the past 10 years that saw foreign participation account for 37% per annum on average.” 

More: Thailand’s tax rates to stay for another 2 years

JLL anticipates not only continued interest from foreign investors in the next few years but also higher competition for quality assets after cross-border travelling further resumes in 2022.  

“With a number of larger deals in the pipeline and investor confidence in the long-term outlook for Thailand’s tourism and hotel industry, it is quite realistic to expect hotel investment volume in 2022 to make a post-COVID-19 new high,” Yomchinda concludes.

The Property Report editors wrote this article. For more information, email: propertyreport@propertyguru.com.

In addition to cryptocurrency, digital nomads can also help boost the real estate market, as it will support trading stimulation in the country.

According to a CEO of an investment property developer, people who invest in crypto are considered as a group with high purchasing power.“

The real estate industry should not ignore investors of this new generation, as they can generate a huge income if they can be attracted to buy property in Thailand.

Moreover, as Club Med recently voted Thailand as the best country to live in for digital nomads, allowing such workers to stay may be the key to boosting the economy.

Despite digital nomads being one of the four high-quality tourist demographics for Thailand’s tourism, there still isn’t a legal visa for those working remotely for countries abroad.

WorkMotion says that technology is ready for remote work, and the pandemic has induced the market for offsite workers worldwide to continuously grow in the future.

In an effort to boost the economy, Thailand has recently approved the digital nomad visa and three other new types of visas.

More: Easing of mortgage rules in Thailand to increase loans by $1.5M per year

Furthermore, current laws do not allow foreigners to buy land or property, but new laws would help ease the obstacles for those approved groups, which include wealthy travellers, retirees, and highly-skilled workers.  

The new property ownership laws seem similar to the U.S.-Thailand Treaty of Amity, which gives special privileges to Americans on Thai soil, and vice versa.

The Property Report editors wrote this article. For more information, mail: propertyreport@propertyguru.com.

Or, if you prefer to keep a copy for yourself, download the PDF report here:

In 2021, the real estate market became sluggish due to several factors, including the never-ending COVID-19 pandemic that has significantly impacted many industries, making for a challenging recovery. The pandemic has also directly influenced consumer purchasing power and increased household debt. As a result, consumers are now taking longer in deciding on their house-buying strategy.

Looking ahead to 2022, the real estate market is expected to recover. Overall, prices are forecast to remain the same. This is especially true for condominiums, which do not show signs of oversupply and continue to attract buyers. The factors that need to be observed are how well the government controls the spread of COVID-19 and economic stimulus measures, which could help the market recover.

Highlights

1. Looking Back at 2021
2. Key Trends in 2022
    - Property Price Trends
    - Property Supply Trends
    - Consumer Sentiment Study
    - Macroeconomic Activity
3. Big Property Bets in 2022
4. Should you buy or sell property in 2022?
5. Conclusion
6. Download Report

Read the online report here:

Looking Back at 2021

The pandemic has effectively become one of the biggest and longest crises causing consumers to be mindful about spending for unnecessary items, as well as high involvement products such as property.

Government's real estate measures, such as reducing transfer ownership fees and mortgages for properties under THB3 million and The Bank of Thailand’s (BOT) loan-to-value (LTV) measures introducing 100% mortgages in October 2021, have not helped much yet. Despite these incentives, consumers still lack purchasing power and remain uncertain about the pandemic and the overall economy.

Consequently, developers have postponed new project launches, particularly of condominiums, to focus on selling existing inventory using promotional campaigns and discounts. As a result, the Price Index for residential properties in Bangkok this year is decreasing.

Key Trends in 2022

Property price trends are on a decline overall

According to the DDproperty Thailand Property Market Index, the Price Index of Bangkok residential property has been decreasing since Q4 2020. It decreased from 197 points to 190 points in Q1 2021, to 183 points in the following quarter, and to 178 points in Q3 2021. Overall, the Price Index decreased by 11% compared to the same period in 2020.

Despite the decline in overall Price Index, there has been some growth. The Price Index of landed residential properties shows positive signs, especially for single-detached houses, which increased by 6% from the previous year and by 13% from Q3 2019, before the COVID-19 outbreak.

Meanwhile, the Price Index of condominiums has slumped by 11% from the previous year and by 16% since the pre-pandemic period.

Property supply trends reflect consumers’ concerns over economic instability

In Q1 2021, the Supply Index steadily increased from 399 points to 428 points, then reached 458 points in Q3 2021. Overall, the index rose by 19% from the previous year and by 25% from before the pandemic.

These reflect low absorption rates resulting from the extended period of economic slowdown, causing consumers to be wary of economic instability and, thus, delay buying property. Investors and foreign buyers have also disappeared from the market.

Over the past year, the area with the highest supply growth for condominium supply was Khlong Thanon Subdistrict in Sai Mai District, which had a staggering 323% increase. The locations with the highest supply growth for single-detached house and townhouse supply were Phlapphla subdistrict in Wang Thonglang district and Sam Wa Tawan Tok subdistrict in Khlong Sam Wa district, rising by 295% and 162%, respectively.

Categorising properties by prices, those under THB1 million recorded the highest growth, increasing by 78%. On the other hand, the THB1 to 3 million segment increased by 42%, while the THB5 to 10 million and THB10 to 15 million segments decreased by 1%.

Most Thais delayed buying property

According to DDproperty’s Thailand Consumer Sentiment Study, 71% of Thai consumers show interest in buying property but have postponed buying a house, with 39% planning to buy within the next one to two years. Financial instability created by COVID-19 is one challenge to investing in property as 63% of respondents had concerns over the property price, while 37% lacked confidence due to political instability.

Looking at age ranges, more than half of millennials (58%) have no plans to move out of their family home within the year. 49% want to be with and take care of their family, while 43% do not have enough financial support to climb onto the property ladder.

The economy has passed its lowest point 

Even though the COVID-19 pandemic has significantly impacted the Thai economy throughout 2021, the Monetary Policy Committee estimates that the economy has passed its lowest point and that the country is taking steps towards economic recovery. The relaxing of COVID-19 measures, the reopening of the country, and the distribution of vaccines have all aided this. Nevertheless, the recovery rate still shows signs of uncertainty.

Overall, Thailand's economy is forecast to grow by 3.7%, thanks to the increase in domestic spending rate and the recovering tourism industry.

Big Property Bets in 2022

Nonthaburi

Locations with the highest price growth are those near the MRT Purple Line route Bang Yai - Bang Sue. Bang Rak Noi subdistrict in Mueang Nonthaburi district increased by 17% and Bang Yai subdistrict in Bang Yai district rose by 9%.

Pathum Thani

Locations with the highest price growth over the year are situated near the Skytrain extension Khu Khot - Outer Ring Road. These include Khlong Hok subdistrict in Khlong Luang district increasing by 50% and Khlong Ha subdistrict in Khlong Luang district rising by 19%.

Samut Prakan

Locations with the highest price growth are those near the MRT Green Line (Samrong-Keha): namely Tai Ban Mai and Thepharak subdistricts both in Mueang Samut Prakan district, which increased by 12%. These locations also benefit from the upcoming Yellow Line (Lat Phrao-Samrong) that will be fully operational in 2022.

Should you buy or sell property in 2022?

2022, the Year of Recovery

The real estate market is expected to recover in 2022. There are already positive signs of this in the last quarter of 2021, including the easing of COVID-19 restrictions, widespread distribution of vaccines, and overall economic rebound.

New supply is predicted to enter the market at the beginning of 2022 as developers and sellers offload their existing property to cater to consumers with strong purchasing power. Positive indicators are the easing of LTV measures and the reopening of the country.

Pricing remains stable from 2021, reinforced with the availability of promotional campaigns and discounts to encourage more sales.

Nevertheless, many challenges for the real estate market remain, including the prolonged COVID-19 pandemic, high household debt, strict requirements to secure a mortgage, and political instability.

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However, the pandemic’s blow has caused premature deaths, put pressure on healthcare systems, wreaked havoc across economies and split up families. Coincidentally the recovery of its aftermath will be slow, and for Thailand, the economy is no different. 

The Thai property market also hasn’t escaped, and prices for residential property have continued on a downwards trajectory. Forecasts expect a stagnant market into 2022 despite the Kingdom easing lockdown measures. The market is driven by individuals who continue to possess weak purchasing power, as illustrated by the DDproperty Thailand Property Market Index Q4 2021 that revealed that the Price Index for residential property in Bangkok hit its lowest point since the final quarter of 2016. 

Given the economic climate, it is not surprising that this lacklustre appetite for property sprees increases supply. In tougher markets, sellers need to work hard to keep the momentum for transactions and be astute to immediate market conditions.

Hence developers were quick to cotton on to the needs of buyers and investors during the pandemic and switched their focus from landed properties like condominiums to vertical ones such as standalone houses or townhouses, as there was a heightened thirst for space. 

This vigour for this type of property has increased supply, and for single-detached houses, it rose by 6% year on year. The areas that performed the best are away from the traditional popular Bangkok hubs like Sathon and Sukhumvit, which once took all the glory as the best place to invest in property.

Now districts out of Bangkok's central core that have risen in the attention stakes are those near recently opened or upcoming mass transit network routes.

Prices in Lat Phrao have increased by 4% over the last quarter, encouraging developers to ramp up supply that has risen by 20% for the same period. While it cannot be ignored that there is significant supply at the lower end of the market for condominium units priced between one and three million baht, for properties over this price, single-detached and townhouses dominate.

Meanwhile, in Sai Mai, supply is concentrated for townhouses priced between one and three million baht, suggesting that it is not only those with deeper pockets who are seeking out vertical rather than landed properties, begging the question of whether Bangkok’s condo bubble has burst.

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However, we tend to forget the negative byproducts such as higher congestion in neighbourhoods and roads, and increased pollution, which adds on to what already is a busy lifestyle. Therefore, what can we do, particularly in our megacities around the world, to live a better quality of life, sustainably?

As reported in Ambuja Neotia, self-contained/integrated townships appear to be the urban development template of the future. Integrated townships are well-planned, self-sustaining areas with commercial, residential, medical, retail, education, sports, and leisure facilities.

They have efficiently designed infrastructure that supports a modern, urban, and sustainable ecosystem. This concept has been favoured and approved by architects and developers in various countries, from Dubai to Singapore, for three simple reasons: it’s sustainable, smart, and incredibly convenient.  

Additionally, these townships create jobs, support happiness and better mental health, catalyse economic growth, as well as are the perfect solution to urbanisation challenges. Hari V. Krishnan, CEO and managing director of PropertyGuru Group, also agrees that self-contained townships are our future’s hope.

In the article ‘Living sustainably and responsibly for our future and our children’s future’, published in the ARES digital White Paper Vol. 1., he said “townships are built by private developers, and this partnership between the private developers and the public infrastructure gives us a great opportunity to improve the homes of the future.”

Read more about how SEA’s self-contained townships promote sustainability at asiarealestatesummit.com/ares-digital-white-paper-vol-1/ 

Write to our editors at propertyreport@propertyguru.com.

Among the solutions implemented by the real estate sector are green buildings, which play a crucial role in reducing carbon footprint. However, it is surprising how few investors know about it, and its impact on the value of properties.  

According to Forbes, one of the key things investors must know about green buildings is that these type of buildings can enhance profits. If done correctly, such investment can contribute to sustainability and triple investors’ bottom line. Profits can increase via energy-efficient outfits, as well as rental premiums commanded by healthier assets that warrant higher values. 

On top of financial benefits, Ries et al. noted that green construction can also produce economic benefits such as boosting health and safety, improving employee productivity, and generating savings from energy, maintenance, and operational cost.  

On that note, the International Finance Corporation (IFC) added that green buildings are a USD24 trillion investment opportunity in emerging markets. Prashant Kapoor of IFC offers solutions to ease the process for developers in the article ‘A developer’s guide to going green: Benefits, financing, certification’, published in the ARES digital White Paper Vol. 1. As more attention is given to this matter over time, it is hoped that more and more investors will see the long-term benefits of going green.

Read more about a developer’s guide to going green at asiarealestatesummit.com/ares-digital-white-paper-vol-1/

Write to our editors at propertyreport@propertyguru.com.

Going green doesn’t necessarily call for new structures, since existing buildings can be upgraded to fit current green building codes, removing contractors’ and landlords’ stress of the upfront expenses. 

Green construction will depend on each city, community, and the building itself, but it is without a doubt that environmentally-friendly housing sees improvements in water conservation, energy usage, quality of life, and more.  

It is often a misconception that only high-end buildings can go green, as sustainability comes with a high cost. Nevertheless, with the constantly-changing construction industry, affordable housing and green building will keep on finding new ways to harmonise.

Additionally, due to the benefits that residents living in low-income housing receive from energy-efficient structures, developers have been keener to combine affordability and sustainability.  

However, investors and developers in emerging markets may still be hesitant about the idea of affordable green housing for multiple reasons. According to a statement by Prashant Kapoor of IFC in the ARES digital White Paper Vol. 1, emerging markets need simple, quick, and affordable rating systems to showcase their green credentials because existing ones are too intimidating and expensive. 

This led to the coming of EDGE – an app developed by IFC that is both a universal standard and a certification system. As green developments continue to extend across Asia Pacific and the rest of the world, the processes and resources to go green will eventually become more accessible and affordable over time.

Read more about how affordable residential developments can go green at asiarealestatesummit.com/ares-digital-white-paper-vol-1/  

Write to our editors at propertyreport@propertyguru.com. 

Angelo Tan of IFC mentions in his article entitled ‘Proptech paves the way for green building adoption in developing countries’, published in the ARES digital White Paper Vol. 1, that in Southeast Asia, there are still impeding perceptions of going green such as higher costs and accessibility only for high-end buildings. 

However, there are people and organisations who are coming up with more programs that can pave the way for green real estate, such as IFC’s Green Building Market Transformation Program that covers investment & advisory to banks and developers, EDGE certification, and green building codes & incentives.  

Additionally, we often hear about the several renowned sustainable architectures around the world such as the Pixel Building (Melbourne, Australia) or the Museum of Tomorrow (Rio de Janeiro, Brazil), and expect to develop the same buildings.

However, it is important to remember that not all green buildings have to be the same, as all countries are different – ie. culture, climate, economic priorities – so their characteristics will influence their approach to green building. 

Various features can make a building ‘green’, including efficient use of resources, pollution and waste reduction, good indoor air quality, and more. Hence, it is about using the right tools, technology, and approach to make sustainable, resilient, and affordable buildings.

Read more about the emergence of green buildings in developing countries at asiarealestatesummit.com/ares-digital-white-paper-vol-1/ 

Write to our editors at propertyreport@propertyguru.com.

According to a report by CSM Medical University, Department of Psychiatry, rapid urbanisation creates a “fringe population”, in which people live mainly from hand to mouth, further adding to poverty.  

Published in the ARES digital White Paper Vol. 1, the article entitled ‘Proptech paves the way for green building adoption in developing countries’ by IFC’s Angelo Tan, he mentions that as many as 100 million people could be forced into extreme poverty by 2030 due to climate change.

Co-pollutants are responsible for more than seven million premature deaths each year, as well as an estimated USD2.4 billion direct costs to health per year by 2030. There is no time to waste, and with the building sector contributing up to 39 percent of total energy-related to carbon dioxide emissions, green buildings play a vital role in the solution.  

Many developed countries already have a mature green building market, which is something to celebrate. Yet, we see a lack of green buildings in developing countries, regions with high poverty rates.

Green buildings are a challenge to developing countries for many reasons, including the fact that “people don’t even have their basic needs met”, said Bruce Kerswill, former WORLDGBC chair, at Green Cities 2014. Proptech is one of the solutions to overcome the challenges of green buildings, as well as organisations like IFC, that offers programmes and advice on green building codes and incentives.  

This is a call to action for global green building adoption.  

Read more about the impact of rapid urbanisation in developing countries at asiarealestatesummit.com/ares-digital-white-paper-vol-1/ 

Write to our editors at propertyreport@propertyguru.com.

Despite the sector’s positive outlook and continued growth, limitations such as liquidity, taxes, and cross-border investments lead proptech to become key in addressing such challenges. Property technology (proptech) is an innovative approach to real estate marketing and has the capability to benefit all stakeholders involved in the buying and selling process.  

In his article published in the ARES digital White Paper Vol. 1, James Dearsley, co-founder of Unissu, says that the global industry is starting to mature with fewer new startups entering the market. This, in turn, allows for greater transparency and a better understanding of the offers on the table.

However, Asia Pacific’s proptech market only began picking up much later on than the rest of the world at USD1 billion in 2014, while the global industry already showed fast growth with over USD12 billion in investment.

China remains the largest investment recipient for proptech start-ups in APAC, receiving 78.6 percent of the total proptech funding in 2019, according to JLL. It is predicted that more real estate companies will invest in proptech to tackle data privacy issues and use technology to achieve greater sustainability in the built environment.  

Read more about the growing proptech investments in Asia Pacific at asiarealestatesummit.com/ares-digital-white-paper-vol-1/ 

Write to our editors at propertyreport@propertyguru.com. 

Or, if you prefer to keep a copy for yourself, download the PDF report here:

Despite the easing of the COVID-19 induced lockdown in the third quarter of 2021, signs of an economic slowdown remain. In addition, weak purchasing power still hinders real estate market recovery.

The Price Index of residential property has continually declined and is forecast to remain stagnant throughout 2021. Meanwhile, the Supply Index has steadily increased. Interestingly, supply has risen for horizontal properties, while the number of new vertical properties in the market has decreased as developers and consumers have postponed selling this type of property.

Report Highlights

1. Get The Guru View
2. The Property Market Index
3. Area Focus
4. Conclusion
5. Download the report

Read the online report here:

Get The Guru View: Key Findings of the PMI Q4 2021

The Property Market Index

Declining real state Price Index

According to the latest DDproperty Thailand Property Market Index report, the Price Index of residential property in Bangkok declined from 183 points to 178 points, or by 2% from the previous quarter (-2% QoQ). This is the lowest point recorded since Q4 2016.

The Price Index for condominiums declined by 2% QoQ and dropped by 11% YoY. Conversely, the Price Index of single-detached houses increased by 6% YoY, while for townhouses, it decreased by 1%.

The Supply Index continues to climb

The Supply Index (the number of residential properties) has increased from 428 points to 458 points, a rate of around 7% QoQ (+10% YoY). Horizontal properties account for much of this rise in supply as the Index for single-detached houses increased by 10% QoQ, while for townhouses, it rose by 8% for the same period. Meanwhile, the Supply Index for condominiums remained stable.

Nevertheless, condominiums accumulated the highest ratio of all residential supply in Bangkok at 86%, while single-detached houses and townhouses accounted for 8% and 6%, respectively.

Area Focus

Conclusion

The Price Index for condominiums shows a downward trend due to economic slowdown affecting the purchasing power of consumers. Condominiums have been hit the hardest due to the diminishing numbers of both domestic and overseas buyers.

Landed properties, especially single-detached houses, paint a more positive picture, which can be attributed to high levels of real demand as people spend more time at home and require more space.

For buyers with strong purchasing power, 2021 is still considered a good time to buy a property, whether to live in or as a long-term investment. Lower prices and other favorable factors such as attractive interest rates, government policies of lower ownership transfer fees, and Bank of Thailand (BoT) relaxing LTV rules for mortgages are cited as reasons for this.

Related Article

Sights Are Set Beyond the CBD

Article • September 2021

For more insights and analysis, read the full DDproperty Thailand Property Market Index Q4 2021 report:

Or, read our previous Property Market Index Reports here:

DDproperty Thailand Property Market Index Q3 2021

Collection • July 2021

DDproperty Thailand Property Market Index Q2 2021

Collection • May 2021

DDproperty Thailand Property Market Index Q1 2021

Collection • February 2021

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DDproperty Thailand Property Market Index Q4 2020

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DDproperty Thailand Property Market Index Q3 2020

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DDproperty Thailand Property Market Index Q2 2020

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DDproperty Thailand Property Market Index Q1 2020

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DDproperty Thailand Property Market Index Q3 2019

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DDproperty Thailand Property Market Index Q2 2019

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DDproperty Thailand Property Market Index Q1 2019

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DDproperty Thailand Property Market Index Q4 2018

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DDproperty Thailand Property Market Index Q3 2018

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DDproperty Thailand Property Market Index Q2 2018

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DDproperty Thailand Property Market Index Q1 2018

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DDproperty Thailand Property Market Index Q4 2017

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DDproperty Thailand Property Market Index Q3 2017

Property is no different. Getting to grips with how millennials live and envisage their future ensures property developers can adequately plan for their needs.

Guide

Sights Are Set Beyond the CBD

Recent research reveals that millennials from Thailand differ slightly in their attitudes towards property than those in Indonesia, Malaysia, and Singapore. The most notable difference is that Thai nationalities are least likely to move out of their parent’s house in the next year.

A staggering 58% are happy to reside with their parents in contrast to 16%, 21%, and 23% of millennials from Indonesia, Malaysia, and Singapore. This is according to research collected by Consumer Sentiment Study H2 2021 that contacted over four thousand respondents to paint a picture of the current mood of the local property market.

The reason for Thais not moving out of their family home is because they want to look after their parents. Two of three intend to own their first property over 35 years of age, and most Thai millennials are saving money to build an emergency fund.

A wise move in the current economic climate as the global pandemic quickly shifted people’s employment and financial statuses. This ethos is shared in Singapore and Malaysia as millennials here are also eager to build a nest egg and to set aside money specifically to buy a property.

Guide

Property Purchasers Delay Transacting Despite Demand

Meanwhile, millennials in Indonesia and Malaysia cite a lack of funds as their main obstacle to getting onto the property ladder, while Singaporeans strive to be married before owning their first home.

Indonesian and Singaporean millennials share similar values as both wish to buy a property rather than rent suggesting that they value purchasing a property over renting one. Meanwhile, Millennials in Malaysia are keener to own a property sooner as the average age of homeownership is 31 years while it is 32 and 33 years for Singapore and Thailand.

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Despite the throes of the pandemic, there is still an appetite for property. This is according to data collected in the second half of this year and recorded in DDproperty’s Thailand Consumer Sentiment Study. The report reveals that 71% of respondents have intentions to purchase a property - a figure is similar to the previous wave suggesting the severity of the outbreak has not put investors off.

Guide

Over 50% of future Thai homebuyers look for sustainable living features

The only shift is when this purchase might happen. The report concludes that in the second half of 2021, more have set sights on property ownership further in the future, with many planning to wait for two years until they part with their cash.

“The economy is poor during Covid-19. I don’t want to buy a house right now due to insecurity/instability at work. I’m afraid I might get fired or laid off. For now, I need to save money and have a lot of savings”, comments one female renter aged 30 and echoing how many respondents feel about the current situation.

Guide

Sights Are Set Beyond the CBD

Loss of income leading to job instability and financial insecurity created by the pandemic is the main deterrent putting off Thai property buyers from transacting immediately. DDproperty has noted that concern for this and property prices has risen over 2021.

Interestingly, the number of Covid cases appears to be of least concern when deciding on buying property, as well as interest rates. However, restrictions making it harder to visit a property in person is one reason for delayed property purchasing and suggests that virtual viewings do not meet with buyer expectations. 

"It makes me slow down my decision on purchasing a property because I am not able to physically visit the location because of the lockdown. If I have to use online only, it is not enough for me", comments one respondent. 

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The appetite for buying property in Bangkok has weakened, decelerating property transactions and decreasing property prices. The DDproperty Thailand Price Index for residential property in Bangkok has slumped to its lowest level since the second quarter of 2017 to 183 points, a decrease of 4% from the previous quarter, indicating the far reach impact of Covid-19.

Rising household debt and a lack of financial security propelled by job uncertainty have put consumers in a weaker position. However, financially sound individuals in a position to buy, have set their sights on seeking a bigger home out of the CBD where space is less of a premium. A common trend in cities across the globe as the pandemic has encouraged people to upsize and move to areas with more availability of space.

For Bangkok, the areas that have aroused the most attention are locations with access to current and future stations of the mass transit lines. Here the Price Index has enjoyed growth, such as Samphanthawong district, where the Price Index rose 22%, bucking the trend seen in the inner city. A similar story for Pom Prap Sattru Phai district as there was an overall Price Index rise of 7% while single-detached houses rose a staggering 45%.

Developers are not naive to this shift in buying habits. Many have focused their attention on creating vertical homes over lateral properties such as condominiums that for a long time have dominated the market.

Initially, this mindset change was driven by the success of the expanding MRT and BTS network, which encouraged people to opt for this means of travel rather than battling the unreliability of traffic on the roads. However, the pandemic forced many people to work from home, causing them to rethink their home setup and incorporating work within this space.

While we are still in the throes of the pandemic, this lifestyle change might be here to stay. Bangkok's CBDs are already very saturated, with a scarcity of land pushing up prices, so it is not surprising that developers and consumers alike have been looking further afield.

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Since the arrival of the pandemic last year, the behaviour of Thai consumers towards real estate has changed, including satisfaction of the housing market, higher interest in sustainable living, and home affordability, according to the DDproperty's Thailand Consumer Sentiment Study. 

Homeownership

Thailand’s economic outlook and political instability are still the main reasons for consumers’ increasing satisfaction and lack of confidence in Thailand’s property market. Satisfaction levels have dropped to 48% in H2 2021, compared to 66% in H1 2019.  

However, seven in 10 Thais intend to buy a property in the future, with many delaying their purchase to after two years.  

Despite the popularity of new properties among Thai homebuyers, resale properties remain a preference for mid-aged Thais.  

The majority of buyers intend to invest in a single-detached home. More than half of the respondents said that future MRT/BTS lines would have a huge influence on their purchasing decisions, as well as the proximity to health-related services (three in four Thais).

Sustainable Living

The importance of living with eco- and health-friendly features, such as a dust-free house, cool house innovation, virus-free house, have grown on Thais. As the Work from Home trend spreads, people see the significance of effective ventilation (65%), heat transfer system (49%), and smart home and internet infrastructure (48%).  

Hence, homes with solar panels and smart cooling systems will be sought-after by more than half of future homebuyers.  

Due to the emergence of electric vehicles (EVs), about two in three Thais would be changing the way they look for property in the future, particularly among the 30-39 years and mid-income segments.

More: Thailand’s housing demand this year expects to drop 10% from 2020

Affordability 

The affordable rating slightly dropped from the previous wave, from 55 percent to 53 percent.  

Fewer Thais consider themselves able to afford a property with the current income and property prices. Therefore, loss of income due to the pandemic and house prices are the main restraints for Thai property investors.  

The economic slowdown is also a key factor, more so among low-income earners. 

The Property Report editors wrote this article. For more information, email: propertyreport@propertyguru.com.

Or, if you prefer to keep a copy for yourself, download the PDF report here:

In Q3 2021, the coronavirus pandemic is forecast to worsen due to new variants that allow faster transmission and a lack of access to vaccines. Government lockdown policies also impact the overall economy, leading to fewer property transactions.

The DDproperty Thailand Price Index has continually decreased from the previous quarter while the DDproperty Thailand Property Supply Index has increased as consumers delay their purchase because the pandemic reduced incomes, resulting in weak consumer purchasing power.

Report Highlights

1. Get The Guru View
2. Price Index Overview
3. District Roundup
4. Supply Index Overview
- Property Gets Snapped Up on Account of Depleting Supply
- Segment that Currently Dominates the Market
5. What it means for those hoping to buy/sell in the current market
6. Conclusion
7. Download the report

Read the online report here:

Get The Guru View: Key Findings of the PMI Q3 2021

Price Index Overview

Since the beginning of the year, property prices in Q3 2021 have been sliding due to the recent outbreak. The country’s economy has slowed down, and household debt has hit a record-high when it rose to 90.5% of the country’s GDP.

The latest DDproperty Thailand Property Market Index report indicates that the Price Index for residential property in Bangkok decreased from 190 to 183 points or -4% QoQ, the lowest since Q2 2017.

Districts Analysis

Bangkok’s fringe and outer CBD areas with access to current and future Skytrain routes recorded the highest Price Index growth. Samphanthawong district increased by 22% QoQ, with condominiums experiencing the highest growth at 22%.

Pom Prap Sattru Phai district increased by 7% QoQ, whereas single-detached houses recorded 45% growth.

Thawi Watthana district enjoyed the highest Price Index from the previous quarter at 9%, with single-detached houses recording the highest increase at 7%.

Supply Index Overview

Supply of residential properties ramped up in Q2 2021, reflecting low absorption rates due to limited consumer purchasing power caused by the long period of economic slowdown.

The Supply Index increased from 399 to 428 points or 7% QoQ and 37% YoY, which is the highest jump since Q1 2015. Forecasts expect supply to remain consistent throughout 2021 as developers delay projects and property owners postpone selling.

Condominiums accounted for the highest proportion of all Bangkok supply at 88%, representing a 10% hike from the previous quarter. Single-detached houses accounted for 7% (+7% QoQ) and townhouses 5% (+12% QoQ).

Property Gets Snapped Up on Account of Depleting Supply

The locations in Bangkok with the highest reduction in supply over the last quarter are Bang Mot subdistrict in Thung Khu district, decreasing by 15%; Lam Pla Thio subdistrict in Lat Krabang district and Suriyawong subdistrict in Bangrak district, both decreasing by 13%; Wang Mai subdistrict in Pathumwan district reducing by 5% and Thung Khru subdistrict in Thung Khru district by 4%.

Even though buyer and tenant interest increased in areas where supply has slumped, there are still opportunities for property owners. It is recommended to be diligent in monitoring market fluctuations caused by COVID-19.

Supply for Properties Priced THB1-3 million Dominate the Market

Looking at property supply across price segments, the THB1-3 million segment accounts for the majority with 10% growth. It is followed by the THB3-5 million, THB10-15 million, and over THB15 million segments, all recording 7% growth QoQ.

Condominiums supply in the THB5-10 million segment grew by 5% from the previous quarter, while supply in the THB1-3 million segment rose the highest at 10%. Most supply for single-detached houses are over THB15 million, while most townhouses fell into THB1-3 million bracket.

What it means for those hoping to buy/sell in the current market

For consumers with sufficient purchasing power, 2021 still presents a good opportunity to invest in or buy residential property.

For sellers, it’s important to understand the needs and behaviours of buyers during the pandemic. However, it is recommended that sellers postpone their sales as prices are currently declining

Conclusion

Property prices continue to decline due to the current wave of COVID-19, and the economic slowdown has significantly impacted consumer purchasing power. Developers have even delayed new project launches, especially for condominiums.

It’s worth noting that condominiums account for most oversupply despite developers engaging in price wars and offering promotions to stimulate consumer purchasing.

Furthermore, the high purchasing power of domestic buyers and investors has already been absorbed, creating low supply absorption rates for the remainder of 2021.

Ultimately, regaining the country’s economy rests on supplying suitable vaccines. Vaccines need to be readily available across the country to avoid another lockdown, and as the government attempts to open the country.

Related Article

Demand For Public Transportation On The Doorstep

Article • May 2021

Sliding Price and Supply Indexes Perfect for Well Heeled Investors

Article • February 2021

For more insights and analysis, read the full DDproperty Thailand Property Market Index Q3 2021 report:

Or, read our previous Property Market Index Reports here:

DDproperty Thailand Property Market Index Q2 2021

Collection • May 2021

DDproperty Thailand Property Market Index Q1 2021

Collection • February 2021

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DDproperty Thailand Property Market Index Q4 2020

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DDproperty Thailand Property Market Index Q3 2020

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DDproperty Thailand Property Market Index Q2 2020

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DDproperty Thailand Property Market Index Q4 2018

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DDproperty Thailand Property Market Index Q3 2018

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DDproperty Thailand Property Market Index Q2 2018

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DDproperty Thailand Property Market Index Q1 2018

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DDproperty Thailand Property Market Index Q4 2017

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DDproperty Thailand Property Market Index Q3 2017

Or, if you prefer to keep a copy for yourself, download the PDF report here:

However, the sharing economy is not a new concept and public transportation in one form or another has been around for some time. Only with the rise of middle classes who have access to more disposable income have people been able to afford their own means of private transportation. More recently though individuals are becoming more aware of their consumption as echoed in Thailand Consumer Sentiment Study H1 2021.

The survey revealed that more than three out of five respondents stated that future MRT and BTS lines would influence their decision to rent or buy a property. Interestingly proximity to public transportation is more important to mid and high-income Thais.

Either this segment is more attuned to the environmental benefits of public transportation or they have identified the correlation of distance to public transportation to capital appreciation. It might even be both factors. 

However, the report indicates that distance to the BTS and MRT varies in importance depending on age. It is the most important consideration, and over the location, for buyers and renters aged 22 to 29 years. This age group is likely to have the lowest income therefore it is easy to assume that their thirst for public transportation is because they do not own a car.

Interestingly respondents aged 60 years and above shared a similar sentiment who might also like the convenience of using public transportation over the responsibilities of car ownership. 

Guide

Why is buying near to a mass transit network a wise investment?

For the rest of the age groups, 30 to 59 years, location continued to be the most important factor for buyers and renters with proximity to public transportation coming second. However, many developers are specifically choosing locations close to the BTS and MRT network in Bangkok to satisfy demand and to achieve the highest prices. So in the future, it might be that these two variables go hand in hand.

However, the DDproperty Thailand Property Market Index showed locations in Bangkok fringe and outer CBD that access current and future Skytrain routes recorded the highest Price Index growth. In Thawi Watthana district, property prices rose 13% from the previous quarter, with single-detached houses experiencing the highest growth at 15%.

The Price Index in Taling Chan district increased 6% from the previous quarter, with single-detached houses having the highest growth at 3%.

The Price Index of Bang Khen district increased by 10% from the previous quarter, with condominiums enjoying the highest growth at 11%.

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Bangkok's Price Index has decreased from Q1 2021 and is forecast to be stable throughout 2021, while the Supply Index increased from the previous quarter as a result of more new project launches. However, the Supply Index is expected to dip again, on account of the new wave of COVID-19 infection that hit the country in March 2021.

Report Highlights

1. Get The Guru View
2. Price Index Overview
3. District Roundup
4. Supply Index Overview
- Property Gets Snapped Up on Account of Depleting Supply
- Segment that Currently Dominates the Market
5. What it means for those hoping to buy/sell in the current market
6. Conclusion
7. Download the report

No time to read now?  

Save a copy of the Property Market Index Q2 2021 for later.

Get The Guru View: Key Findings of the PMI Q2 2021

Price Index Overview

Property prices in Q2 2021 have continuously decreased from the previous quarter. The economic slowdown, high household debts, and the impact of the latest COVID-19 wave caused buyers to delay or postpone property purchases.

Bangkok's residential property Price Index decreased from 197 to 190 points or a 4% reduction from the previous quarter. This is considered as the lowest Price Index over the past 15 quarters since Q2 2017.

Districts Analysis

Locations in Bangkok fringe and outer CBD that access current and future Skytrain routes recorded the highest Price Index growth. In Thawi Watthana district, property prices rose 13% from the previous quarter, with single-detached houses experiencing the highest growth at 15%.

The Price Index in Taling Chan district increased 6% from the previous quarter, with single-detached houses having the highest growth at 3%.

The Price Index of Bang Khen district increased by 10% from the previous quarter, with condominiums enjoying the highest growth at 11%.

Supply Index Overview

Despite an increase in Bangkok’s Supply Index to 399 points from 363 points, or by 10% from the previous quarter, property supply is expected to plummet as developers postpone launching new projects, while consumers delay their selling decision.

Condominiums accounted for the highest proportion of all Bangkok residential supply at 88%, representing a 10% hike from the previous quarter. Single-detached houses accounted for 7% (+12% QoQ) and townhouses 5% (+12% QoQ).

Property Gets Snapped Up on Account of Depleting Supply

Experiencing the highest supply decline from the previous quarter are some central Bangkok locations, including Talat Phlu subdistrict in Thonburi district decreasing by 17%, Somdet Chaopraya subdistrict in Klhong San district by 8%, Wang Mai subdistrict in Pathumwan district by 4%, and Nuanchan subdistrict in Bueng Kum district by 2%.

The aforementioned areas also attracted great interest from buyers and renters. This reflects heightened consumer interest in buying and renting properties where supply is limited, creating favourable conditions for investors who own properties in such locations.

Properties in THB5-10 Million Segment Dominate the Market

Looking at property supply across different price segments, the THB5-10 million segment accounts for the majority, followed by the THB3-5 million and THB1-3 million price brackets.

Supply increased in every price segment, with the THB1-3 million segment experiencing the highest supply growth at 14% QoQ. Meanwhile, the THB5-10 million segment grew by 8% QoQ and the THB3-5 million segment increased by 10%. 

What it means for those hoping to buy/sell in the current market

Q2 2021 remains an attractive time for buyers and long-term investors due to the lower interest rates and prices, particularly of condominiums.

New projects are targeted towards horizontal living, buyers with real demand and investors with no affordability issues. Property prices will likely remain stable until the end of 2021 or until the pandemic improves.

However, economic instability and the pandemic make consumers more conscious about their spending habits and raise concerns about long-term commitments like buying a house. In Q2 2021, it is vital to keep an eye on how appropriate upcoming government policies are and how they impact businesses and citizens.

Conclusion

Property prices are likely to continuously decline because of the COVID-19 pandemic and economic slowdowns, which affect buying decision.

Despite government policies to stimulate the real estate market, the supply available in the market is still high. This shows that lower-middle class consumers are delaying their property purchase.

Expediting the COVID-19 vaccinations could be the fastest cure to help the economy and real estate market recover as it directly affects consumer confidence.

Download the report

View Our Past Property Market Index Reports from previous.

Thailand Property Market Index Q1 2021

Sliding Price and Supply Indexes Perfect for Well Heeled Investors

Article • February 2021

Thailand Property Market Index Q4 2020

Guide

A Bumpy Year For The Thai Property Market

Thailand Property Market Index Q3 2020

Guide

Growth For Single-Detached Houses Takes Hold Outside Of Bangkok

Thailand Property Market Index Q2 2020

Guide

Local And Global Variables Stagnating Thailand’s Property Market

Thailand Property Market Index Q1 2020

Coronavirus Versus Condominiums

Buying a home is one of the most difficult decisions of our lives. It is also likely to be the most expensive decision. When committing to purchasing a home, it is important to make an informed choice, so that the decision can be made confidently.

DDproperty wants to help make this process easier for homebuyers, because we are all potential homebuyers and homeowners too. We created this report to help Thais better understand the movement of the property market, so that buyers can offer reasonable prices in line with market sentiments, or try to time their purchases better.

As the country's leading property site, DDproperty processes a vast amount of real estate data daily, providing us the necessary data to crunch, and deliver in-depth insights to all Thai homeseekers.

For more insights and analysis, read our latest Thailand Property Market Index report here:

DDproperty Thailand Property Market Index Q4 2021

Collection • November 2021

Or, read our previous Property Market Index Reports here:

DDproperty Thailand Property Market Index Q3 2021

DDproperty Thailand Property Market Index Q3 2021

Collection • July 2021

Sights Are Set Beyond the CBD

Article • September 2021

DDproperty Thailand Property Market Index Q2 2021

DDproperty Thailand Property Market Index Q2 2021

Collection • May 2021

Demand For Public Transportation On The Doorstep

DDproperty Thailand Property Market Index Q1 2021

DDproperty Thailand Property Market Index Q1 2021

Collection • February 2021

Sliding Price and Supply Indexes Perfect for Well Heeled Investors

DDproperty Thailand Property Market Index Q4 2020

DDproperty Thailand Property Market Index Q4 2020

Collection • February 2021

A Bumpy Year For The Thai Property Market

DDproperty Thailand Property Market Index Q3 2020

DDproperty Thailand Property Market Index Q3 2020

Growth For Single-Detached Houses Takes Hold Outside Of Bangkok

DDproperty Thailand Property Market Index Q2 2020

DDproperty Thailand Property Market Index Q2 2020

DDproperty Thailand Property Market Index Q1 2020

DDproperty Thailand Property Market Index Q1 2020

DDproperty Thailand Property Market Index Q3 2019

DDproperty Thailand Property Market Index Q3 2019

DDproperty Thailand Property Market Index Q2 2019

DDproperty Thailand Property Market Index Q2 2019

DDproperty Thailand Property Market Index Q1 2019

DDproperty Thailand Property Market Index Q1 2019

DDproperty Thailand Property Market Index Q4 2018

DDproperty Thailand Property Market Index Q4 2018

DDproperty Thailand Property Market Index Q3 2018

DDproperty Thailand Property Market Index Q3 2018

DDproperty Thailand Property Market Index Q2 2018

DDproperty Thailand Property Market Index Q2 2018

DDproperty Thailand Property Market Index Q1 2018

DDproperty Thailand Property Market Index Q1 2018

DDproperty Thailand Property Market Index Q4 2017

DDproperty Thailand Property Market Index Q4 2017

DDproperty Thailand Property Market Index Q3 2017

DDproperty Thailand Property Market Index Q3 2017

Before its arrival, many residents invested in city boltholes near their place of work to spend their week saving time on a daily commute. Weekends would be spent in their home out of the city centre that afforded more space and a break from city life.

However, the BTS and MRT network has allowed Bangkokians to work in the CBDs and commute easily from other areas of the city and even neighbouring provinces such as Nonthaburi and Samut Prakan.

Guide

Why is buying near to a mass transit network a wise investment?

The COVID-19 global pandemic also forced many people to work from home. Subsequently, there was an increased desire for space with many people shifting their lives to the suburbs where larger homes are located at a more affordable price tag. However, these homes need to be within close vicinity to the mass transit network to enable residents to easily travel in central locations as they please.

Therefore it comes as no surprise that the Thailand Property Market Index Q1 2021 revealed that the areas with the highest Price Index growth are situated near newly opened or nearly opened BTS stations.

A pattern that is emulated in many cities across the world particularly where residents are encouraged to use public over private transportation to reduce congestion and to minimise pollution. 

In Bangkok, Anusawari in Bang Khen district has recorded a 7% increase from the previous quarter and 6% for the year. This is due to the BTS Green Line extension including the opening of 11th Infantry Regiment, Wat Phra Sri Mahathat, Phahon Yothin 59, Sai Yut and Spahan Mai stations.

Meanwhile, Lat Phrao area in the district of the same name enjoyed a similar quarter-on-quarter growth but has increased a staggering 10% year on year. Single-detached houses experienced the highest hike in value quarter-on-quarter of 5% illustrating the thirst amongst homeowners for space and privacy. 

Lastly, Thung Song Hong in Lak Si area benefits from being close to the BTS Dark Red Line Bang Sue-Rangsit that is due to be operational this year. Here prices rose 6% quarter-on-quarter and 14% year-on-year suggesting how homeowners are earmarking future opening stations when investing and appreciating how this infrastructure can help drive values upwards.

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Guide

COVID-19 Raises Caution Amongst Property Buyers

Research collected from Thailand Consumer Sentiment Study reveals that this year most Thais feel that the most important way to help boost the market is to reduce interest on both new and existing loans. Last year respondents were just concerned with reducing interest on home loans in general, but since the pandemic has continued into 2021 caution about the market has continued with many respondents seeing that the government needs to take steps to intervene. 

“Currently with COVID-19, the government should reduce the transfer fee from 2% to 0.1%. They should reduce the tax too. This will encourage us to transact more”, commented a male homeowner aged 35 years.

Guide

Unit Size Dominates Buyer and Renters Wish Lists

The next government intervention Thais expect is to introduce tax reductions for first buyers, a sentiment that younger Thais and non-property owners stressed the most as it impacts them the most. Plus, the property market needs first-time buyers to keep the property market moving as over time these first-time buyers go on to upsizing or investing in an additional property. 

Over half of Thais prefer home loans over 25 years to minimise their monthly instalments while reducing the down payment required when buying a property was the next important factor. 78% of respondents stated that interest rates are the top consideration when choosing a home loan.

While 60% had concerns over their job stability as to whether they should apply for a loan explaining why some respondents even suggested that home loans and interest holidays for three to six months would help people with their finances.

However, overall the study revealed that there is a real thirst to reduce costs associated with house buying rather than just putting them on pause.

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Guide

Tricks of Off-Plan Property Purchasing

DDproperty collected research to understand what buyers look for when choosing a suitable developer. The quality of the interior fixtures provided by the developer was the number one priority for buyers according to 68% of respondents.

Thailand Consumer Sentiment Study was shared by all respondents regardless of whether they were a homeowner, property investor, renter, or if they lived with parents. It was also shared across all age groups apart from those over 60 years old who very slightly prioritised the developer’s portfolio of past projects over the interior fixtures and fittings.

Looking at a developer’s portfolio enables buyers to assess the quality of the finish and how the property has stood the test of time. Hence this was the second most important variable for renters, those living with parents, and nearly all age groups. However, the developer’s reputation as a close third and in some cases was an equal consideration in addition to the developer’s recent track record and reviews, the latter that was echoed more by investors than any other group.

This information solidifies the need for developers to ensure that they maintain their reputation and keep their consumers happy to lure in future business. It also suggests that buyers carry out significant research on their developers and that developers should put as much effort into keeping their existing and past customers happy as their marketing strategy.  

Guide

Carrying out Due Diligence on the Developer

Other factors listed when choosing a developer were the availability of promotional campaigns. This was most important for those aged between 22 and 29 years old and respondents living with parents suggesting that these segments are first-time buyers are more price sensitive so any helping hand they can get to secure a property is gratefully received.

Developer financial stability and whether they are publicly listed are the least important factors for buyers when considering a developer.

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Data collected from DDproperty in their quarterly report, ‘Thailand Property Market Index Q1 2021’, reveals that the Price and Supply Indexes have decreased 2% and 23% respectively from the previous quarter.

“The weakening of the property market for the first quarter of 2021 is a direct result of the new wave of COVID-19 pandemic that has caused the Price and Supply Indexes to depreciate", comments Kamolpat Sawaengkit, Country Manager of DDproperty.

The slump in property prices has been across all property types, although condominiums have felt the pinch the most as attention has drawn towards living in houses as opposed to lateral spaces. This has led to the index reaching its lowest level since the second quarter of 2018 and further exacerbated by the tightening of low-to-value measures making it harder for investors to raise funds to transact.

These figures signify a weaker market not great for sellers or developers. But it does provide more favourable conditions for investors with sufficient funding to take advantage of lower prices in anticipation that the property market will venture into an upwards trajectory in the future.

When considering what property type, investors should note that the Price Index of condominiums decreased 2% from the previous quarter and 5% year-on-year, while remained stable for townhouses and reduced 2% for single-detached houses. 

Likewise, the areas that have performed the best are near newly opened or soon to be opened mass transit network stations. For example, properties in Bang Khen district rose 7% from the previous quarter, and condominiums in the same locale bucked the trend increasing 4%.

Guide

COVID-19 Raises Caution Amongst Property Buyers

Despite being able to take advantage of lower prices, buyers should be aware that they have less choice. Developers and sellers have delayed selling to wait for a more buoyant time in the market, causing the Supply Index to decline to 363 points from 385. 

The second wave of COVID-19 and political instability will arouse concern for Thailand's property market this year. Property stimulus measures reducing taxes were introduced to help give the market a boast, but have had little success. Regardless of this, buyers with an appetite to invest should not snub now as an appealing time to transact provided they carefully consider the right product, price, and location.

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Report Highlights

1. Get The Guru View
2. Price Index Overview
3. District Roundup
4. Supply Index Overview
- 5 Districts Experiencing the Highest Supply Reduction
- Segment That Currently Dominates the Market
5. What it means for those hoping to buy/sell in the current market
6. Conclusion
7. Download the report

Get The Guru View: Key Findings of the PMI Q1 2021

Price Index Overview

Property prices have continuously decreased since the end of 2020. The economic slowdown, high household debt, and the huge impact of the new wave of COVID-19 caused buyers to delay or postpone house purchases. As a result, developers engaged in price wars to attract buyers with promotional campaigns and discounts to speed up buying decisions.

The Price Index for housing in Bangkok has declined to 197 points from 201 points according to the latest report. This 2% decrease from the previous quarter is the lowest recorded Price Index for the past 14 quarters since Q2 2018.

Districts Analysis

Areas with the highest Price Index growth are mostly situated near newly opened or nearly opened BTS stations such as Bang Khen district, which rose by 7% from the previous quarter. Here condominium prices increased by 4%.

The Price Index in Lat Phrao district grew by 6% from the previous quarter with single-detached houses experiencing the highest growth at 5%. 

In Lak Si district, the Price Index hiked by 6% from the previous quarter while it rose by 1% for single-detached houses and condominiums.

Supply Index Overview

The supply or number of residential properties decreased after the new wave of COVID-19, causing developers and consumers wanting to sell to delay selling. The Supply Index declined to 363 points from 385 points, or by 6% from the previous quarter, and is expected to be affected for at least another quarter.

Condominiums accounted for the highest proportion of all Bangkok supply at 88%. However, this number represents a decrease of 7% from the previous quarter. Single-detached houses accounted for 7% of supply in Bangkok (-2% QoQ) and townhouses for 5% (+1% QoQ).

5 Districts Experiencing the Highest Supply Reduction

Some locations in central Bangkok have experienced the highest supply decline from the last quarter, especially in Wattana district. Its subdistricts Phra Khanong Nuea, Khlong Tan Nuea, and Khlong Toei Nuea saw major supply reductions by 19%, 16%, and 15%, respectively.

Nearly all areas saw less interest from buyers, except Khlong Tan Nuea subdistrict in Wattana and Phra Khanong subdistrict in Khlong Toei where buyer interest increased by 1%.

On the other hand, interest in renting spiked especially in Khlong Toei district. Its subdistricts, Khlong Toei, Phra Khanong, and Khlong Tan saw rental interest rise by 17%, 12%, and 11%, respectively. Wattana district, Khlong Toei Nuea, Khlong Tan Nuea, and Phra Khanong Nuea subdistricts enjoyed 15%, 10%, and 9% growth, respectively.

This reflects heightened consumer interest in rental properties, creating favourable conditions for investors who own properties in such areas.

Properties in THB5-10 Million Segment Dominate the Market

Looking at property supply across different price segments, the THB5-10 million segment accounts for the majority, followed by the THB3-5 million segment, and the THB1-3 million price bracket.

But despite accounting for the highest property supply, the THB5-10 million segment declined by 11% QoQ. Meanwhile, the THB5-10 million segment remained consistent and garnered the most attention, growing by 5% QoQ. These are consistent with the high absorption rates seen last quarter.

Even though the THB1-3 million segment appears to attract the most attention, properties over THB10 million experienced the highest consumer interest growing by 7%, while the THB5-10 million bracket expanded by 5% and the THB1-3 million bracket by only 1%.

What it means for those hoping to buy/sell in the current market

In 2021, there’s still a golden opportunity for buyers and investors with high purchasing power because prices remain stable as in 2020. It’s also worth noting that most projects are scattered around the outskirts of Bangkok, especially near new and upcoming BTS stations.

Buyers and investors, however, will still require financial discipline despite fair property prices. This is because of the instability associated with the pandemic, which can result in an economic slowdown and affect income.

Conclusion

The slow economic recovery and high absorption rates from promotional campaigns in 2020 will result in less purchasing power in Q1 2021. Developers are expected to delay their new project launches and wait until demand returns to minimise risk. Even though property prices remain the same as in 2020, there are still many promotional campaigns to attract consumers, such as free interest rates or free maintenance fees and discounts.

Even though government measures like deductions on land taxes and ownership transfer fees might have allowed the property market to breathe easier, those policies are expected to offer little stimulus. Most consumers have still delayed their decision to buy due to COVID-19, household debt, and political instability.

Download the report

View Our Past Property Market Index Reports from 2020

Thailand Property Market Index Q4 2020

Guide

A Bumpy Year For The Thai Property Market

Thailand Property Market Index Q3 2020

Guide

Growth For Single-Detached Houses Takes Hold Outside Of Bangkok

Thailand Property Market Index Q2 2020

Guide

Local And Global Variables Stagnating Thailand’s Property Market

Thailand Property Market Index Q1 2020

Guide

Coronavirus Versus Condominiums

Although there was a huge decline in both Supply and Price indices in the first half of 2020, the indices have picked up in Q3 2020, showing signs of an increase in buying and selling of property.

Report Highlights

1. Get The Guru View
2. Price Index Overview
3. Supply Index Overview
4. District Roundup
5. Locations with Potential Oversupply
6. Bangkok: Supply Volume by Price Range
7. What it means for those hoping to buy/sell in the current market
8. Conclusion
9. Download the report

Get The Guru View: Key Findings of the PMI Q4 2020

Price Index Overview

The latest DDproperty Thailand Property Market Index recorded an increase in the Price Index of Bangkok residential properties, up by 2% from the previous quarter, moving from 198 to 201 points. This marked the first increase in property prices in six consecutive quarters (since Q1 2019), with the Price Indices of single-detached houses increasing by 3% and condominiums increasing by 1%. Only the Price Index of townhouses saw a decline, decreasing by 1%.

Supply Index Overview

The market has recently shown a slow absorption rate as economic uncertainties caused buyers to delay their decisions to buy properties, which has resulted in property supply increasing in Q3 2020 QoQ. The Supply Index increased by 23%, moving from 313 points in Q2 2020 to 385 points in Q3 2020, reflecting a great number of inventories in the market.

Condominiums accounted for the highest property supply in Bangkok, at 88%. Wattana District is the locale with the highest condominium supply accounting for 20% of the total Bangkok supply.

Districts Analysis

Locations with Potential Oversupply

There are three concerning locations that maybe prone to property oversupply at the moment. Consumers seem to be less interested in these locations in the past quarter.

These locations are Huai Khwang Subdistrict with 2% lower interest from consumers to buy; Bang Na Subdistrict with 4% lower interest from consumers to buy; and Suan Luang Subdistrict with up to 5% lower interest from consumers to buy. This has contradicted the 47% YoY increase in property supply seen here in the last quarter.

Bangkok: Supply Volume by Price Range

In terms of property supply in different price segments, the THB5-10 million segment has the largest property supply, accounting for up to 30% of all property.

The THB3-5 million segment has the second largest property supply at 21%, while the THB1-3 million segment accounted for 19% of all properties in Bangkok. The below-THB1 million segment accounted for the smallest property supply, at 1% of all properties.

Although the THB5-10 million segment has the highest number of properties among all segments, in the past year, supply in that price range has been taken up, resulting in supply decreasing by 7% YoY. This is because mid- and high-end consumers still demand properties from that price range.

In contrast, the supply of properties priced no more than THB3 million increased. Sellers of these properties believe that by reducing transfer fees, more consumers will buy at this price range. However, that may not be the case as seen in the market absorption rate. In fact, supply volumes in this segment increased by 20% QoQ and 29% YoY. Sellers in this price range should, therefore, wait to sell their units.

What it means for those hoping to buy/sell in the current market

Q4 2020 remains a buyer’s market due to continuous price drops from promotional campaigns. Owners who intend to sell properties at locations with potential oversupply should postpone selling and wait for market to improve, to earn better returns. And with the increase of supply in the THB3-million-or-less segment, sellers should wait until supply volume decreases because buyers are not buying even with reduced transfer fees.

At the same time, property consumers should save up and be financially prudent during the COVID-19 period due to uncertainties around the economy, employment, and household incomes.

Conclusion

Consumers continue to remain most interested in the areas surrounding the Central Business District (CBD) and Bangkok’s periphery because these are where landed residential properties with affordable prices are located.

Furthermore, these areas offer residents convenient access to transportation, enabling them to easily reach the inner city and eliminate the need to live in high-density inner-city neighbourhoods.

Despite the promotions and discounts offered by developers to attract buyers who have had plans to buy properties since the beginning of the lockdown period, we don't anticipate that Thailand’s property market situation will be seeing any significant change until early 2021.

This is largely due to several concerns, including the country’s economic and political uncertainties, as well as the lingering COVID-19 pandemic. Additionally, consumers might favour saving money during these times of uncertainty.

Download the report

View Our Past Property Market Index Reports from 2020

Thailand Property Market Index Q3 2020

The Price Index reached its lowest level of 196 points in the second quarter of the year. Continued economic slowdown, COVID-19 pandemic, and price wars in Bangkok’s condominium market were among the factors suppressing the Price Index to reach a point that is attractive among buyers. Download the full report.

Thailand Property Market Index Q2 2020

Guide

Local And Global Variables Stagnating Thailand’s Property Market

Thailand Property Market Index Q1 2020

Guide

Coronavirus Versus Condominiums

Thailand Consumer Sentiment Study Report answers these questions by collaborating over 1,000 views of individuals on Thailand’s property market. Thus enabling the report to give an accurate depiction of the perception renters and buyers have on the market.

Guide

Don’t Be Scared Buying During a Pandemic

The research revealed that unit size continued to be the most important variable when looking for a property - a sentiment echoed across all age groups and income earners. A conclusion not surprising since the COVID-19 pandemic has put heightened pressure on homes as more people live and work within one space.

Also explaining why facilities were the next most important factor when looking for a property as the lockdown forced people to stay within their home making the most of their building's amenities. 

Price per square metre was the next important variable cited by respondents suggesting that a property investment still needs to stack up on paper. It also indicates that the market remains dictated by this when buying and selling property, meaning that investors need to ensure that they buy at the right price point for the purchase to be a sound investment.

Interestingly high-income earners were the group most concerned with the property prices. This suggests that purchases are made with their head rather than their heart, which is often deemed the case for owner-occupiers.

Whilst younger Thais had concerns over the design and construction of a property reinforcing that developers need to tune into this to ensure that their project is successful amongst the younger demographic as they reach the first rung of the property ladder. 

Guide

The Benefits of Buying Young

The pandemic decreased the appetite for the property as affordability became an issue, and some investors became more cautious. Consequently, many developers launched promotional packages to offload stock - perfect for savvy buyers. This has led to more investors looking for promotional campaigns when looking to buy a property in hope of securing a deal.

Finally, whether the property is leasehold or freehold is the least concern of consumers looking to invest in property. This suggests that investors might not be concerned with decreasing years on a leasehold, feel that leasehold properties are a secure enough investment, or that they might not necessarily be concerned with long-term investments.

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There was a focus on health services as concerns rose about whether they would buckle under the strain. Economies took a battering as some businesses had to shut shop and slowly travel ground to a halt.

Guide

Don’t Be Scared Buying During a Pandemic

Despite the outbreak commencing nearly a year ago, its effect is still widespread. Some countries shut their borders to eradicate the virus by limiting an entry point, and as the weeks passed and case numbers rose, virologists were able to learn more about the virus and how to handle it.

The property market is directly linked to the economy so unsurprisingly it did not escape the pandemic. The biggest issue faced by the industry is affordability. Slumping economies directly affected purchasing power, particularly as unemployment rates increased weakening appetite for property investments.

Thailand Consumer Sentiment Study H1 2021 Report spoke with over 1,000 people to reveal the perception of Thailand’s property market amongst individuals. This data is intended to help consumers and property agents understand the current state of play of the market. The COVID-19 pandemic was a curveball for Thailand’s property market that no one could have predicted. 

“It [COVID-19] has directly affected my family as my husband lost his family during COVID-19. Our household income is not the same as before so we have to think and plan more carefully about buying a property”, commented one respondent.

Aside from financial hurdles to secure a property, Thais purchasers cited that it is now difficult to view properties. Their increased concern for personal health and hygiene has exacerbated this further as people are more hesitant about welcoming people into their property and buyers are also more cautious too - a sentiment strongly held amongst Thais under the age of 60.

In turn, there has been a delay in property transactions amongst all age groups, whilst the over 60s stated that they are more cautious around health and hygiene-related issues when choosing a property illustrating the effect the outbreak has had.

Guide

The Benefits of Buying Young

Despite uncertainty around house prices being the least important factor amongst consumers, one respondent did state to the contrary, “I’ve delayed my purchase. The property price is declining… You have no idea when the price is going to stop declining”.

This suggests that overall consumers are airing on the side of caution when looking to invest in property, a fact that developers and agents should take heed of.

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Looking ahead to 2021, prices and supply should balance out. The second half of 2021 should show signs of recovery depending on how the economic and political situation fares, how the COVID-19 outbreak pans out, and whether the government introduces a property market stimulus measure.

Highlights

1. Looking Back at 2020
2. Key Trends in 2021
    - Property Price Trends
    - Property Supply Trends
    - Consumer Sentiment Study
    - Macroeconomic Activity
3. Big Property Bets in 2021
4. Should you buy or sell property in 2021?
5. Conclusion
6. Download Report

Looking Back at 2020

The Bank of Thailand’s (BOT) loan-to-value (LTV) measure presented a challenge to home buyers wanting to invest in multiple properties or buy property over THB10 million due to the requirement of higher deposits. This group of buyers disappeared from the market, causing it to steadily slow down from the middle of 2019 till the beginning of 2020.   

The COVID-19 pandemic caused businesses in Thailand to reduce employee numbers, cut salaries, and downsize to manage costs and avoid closure. The crisis also compelled consumers to reduce spending on luxury and household expenses.

Due to the overall property slump, most developers delayed launching new projects, especially of condominiums. Instead, they focused on selling existing inventory and offering discounts of up to 40% on top of other promotional strategies to stimulate sales and transfer ownership. This resulted in the Bangkok Housing Price Index decreasing from last year.

Key Trends in 2021

Property Price Trends show increase in the last few quarters

By the end of 2019, house prices were still decreasing due to an economic slowdown, a high level of household debt, and the new LTV requirements. Housing prices remain on a downward trajectory due to the same factors and even before the COVID-19 outbreak dampened the market further.

The DDproperty Thailand Property Market Index has shown that the residential Price Index in Bangkok decreased in the final quarter of 2019 to 207 points before declining to 204 points in Q1 2020. It slipped further to 198 points in Q2 2020 before slightly increasing to 201 points after the announcement to lift the lockdown. This 2% rise was the first time increase in six quarters since Q1 2019, but overall, the Price Index had decreased by 9% if compared with the same period in the previous year.

Property Supply Trends indicate an oversupply in many areas

In Q4 2019, the Supply Index continued to decrease to 336 points, and dropped to 335 points in Q1 2020. Despite a further decrease to 313 points in the following quarter, the indices rose 23% to 385 points in Q3 2020 when the lockdown was lifted.

This Supply Index increase illustrates how consumers wanted to sell post lockdown and how many buyers delayed their decision to buy due to the economic uncertainty.

In 2020, Suan Luang sub-district had the highest condominium supply, increasing by 42%. For single-detached houses, Bang Na had the most supply rising a staggering 233% while Bang Chak sub-district in Phra Khanong district had the most supply of townhouses, growing by 78%.

Looking at prices, 34% of the supply was for properties less than THB1 million and 29% for the THB1 to 3 million bracket. The supply of properties priced between THB5 and 10 million decreased by 7% while those between THB3 and 5 million decreased by 3%. 

Changing consumer preferences shown in Consumer Sentiment Study

The global pandemic has impacted consumer buying decisions according to the latest DDproperty Thailand Consumer Sentiment Study. 75% of consumers delayed buying a house, while 32% had concerns about prices. 31% believed that it is a difficult time to secure a mortgage with loan approvals taking longer than usual, while 24% turned their attention to buying products focused on health and wellbeing. Lastly, 20% found it difficult to visit a project, hence delaying their investment.

Aside from prices, mortgage and locations are two other important factors considered by people when buying a property. Post the Covid-19 pandemic, consumers want their properties to enhance their new lifestyles, especially considering the shift towards working from home.

Macro trends indicate a two year recovery period

Even though the Thai economy has slightly recovered due to the successful control of the COVID-19 pandemic, the gradual recovery of the global economy needs to be considered. Overall activity is down and lower than before the outbreak.

The economy is forecast to grow by 3.6% in 2021 according to the Monetary Policy Committee, but assuming there is no new outbreak it will take two years to recover. The Monetary Policy Committee has also kept the policy rate at 0.5% per year, the lowest rate in history, to help on the road to recovery. 

Big Property Bets in 2021

The Rise of Greater Bangkok Cities  

Nonthaburi

The proximity to BTS and MRT lines influenced property prices in Nonthaburi, which are likely to continually increase due to rising demand.

Samut Prakan

Samut Prakan is a province that takes advantage of the BTS Green Line which was extended between Bearing and Kheha. Expected to be completed in 2021, the BTS Green Line has led to increases in residential property prices in areas near the train line, such as Thai Ban Mai sub-district in Mueang Samut Prakan district.

Pathum Thani

There are many factors that make Pathum Thani province an ideal area to live in, one of which is proximity to large department stores and the BTS Green Line running between Mo Chit–Sapan Mai-Kukot, as well as the extended line running between Kukot and Outer Ring stations.

Should you buy or sell property in 2021?

Conclusion

In 2021, the property market will start showing signs of recovery in line with the increased Price Index and news of a successful COVID-19 vaccine. Additionally, the economy is expected to fare better than anticipated.

Buyers will continue to be motivated by campaigns and promotions and encouraged to transfer ownership swiftly to help developer liquidity. Developers have adopted new marketing strategies to attract demand as property prices are forecast to remain stagnant for the first half of 2021 and rise only in the second half of the year. The market next year is also expected to be driven by real demand as opposed to speculative investors.

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The concept of leasehold properties flourished in London when single dwellings were split into multiple ones to cater to the growing population and to adapt to changing living habits. The original owner kept the freehold of the property and charged the leaseholds an annual fee to rent the space seeing it as a lucrative business venture, although this has become debatable recently.

The advantage of having a detached freeholder is that a single person or management company looks after the upkeep of the building minimising disputes between leaseholders, which can be magnified in cases where there are just a few leaseholders.

The downside is that each year the years on a leasehold property decrease and eventually the leaseholder will have to pay a substantial sum to extend the lease to ensure that their property does not end up in the hands of the freeholder - although cases are rare.

While leaseholds derived from older buildings, the concept can be applied to new builds, including in Thailand. Vertical living means that everyone has to share the land, unlike a standalone house.

Typically condominiums in Thailand are sold on a freehold basis making them attractive to foreigners who are legally allowed to own them unlike land and thus often houses - although some houses are available to buy on a leasehold basis. Freehold condominiums share the freehold giving each owner indefinite ownership rather than for a set number of years as dictated by the lease.

An appointment management company oversees the management of the building and collects the management fee from each unit, the amount of which is calculated by the unit size. However, some condominiums in Thailand are only available on a leasehold basis, which is usually dictated by who owns the land.

The crown owns many prime locations in and around Bangkok's Lumphini area. Any plot of land developed into a condominium owned by the royal family is not sold, and so units are sold on a leasehold basis.

Leasehold terms are usually for 30 years with two options to renew for 30 years each giving leaseholder security for at least 90 years. Many investors consider this a small price to pay for living in one of Bangkok’s most prestigious neighbourhoods and in an exclusive condominium project.

Despite not having indefinite ownership like a freehold unit, leasehold condominiums are still a safe investment option. They come with clear ownership rights and obligations are outlined with any property purchase in Thailand. Therefore if your heart is set on a property in a particular Bangkok location that is leasehold, there is no reason to be deterred.

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Some landlords prefer to focus on a particular pool of tenants. For example, those wanting to capitalise on the student market should look for properties near to Universities in safe and secure buildings that parents would be happy for their children to reside in. Those wanting to accommodate families should consider distance to local schools, larger units and the amenities in the building where children like to play and congregate. 

What types of tenants are there?

One market that Bangkok’s landlords focus on is the Japanese. Bangkok has approximately 50,000 Japanese residents making the capital home to the fourth-largest Japanese population outside of Japan.

Thailand and Japan have a longstanding relationship that has led to thousands of Japanese companies setting up in the Kingdom to take advantage of the cheaper operating costs. Thailand also has a strong manufacturing reputation enabling Japanese global brands such as Honda, Nissan, Toyota and Panasonic to expand. 

Typically, most Japanese residents live around Phrom Phong, Thong Lor and Ekkamai which are on the Light Green/Sukhumvit Line of the BTS Skytrain network. Visit these neighbourhoods within the Sukhumvit area, and it is easy to see the host of amenities geared towards this community from restaurants, retail outlets and Onsens. 

Homes in Tokyo are renowned for being small due to high land prices and a limited supply of land. Japanese residents are accustomed to living in small units but also enjoy the larger homes found in Bangkok since housing budgets go further.

Being very community-driven, they prefer to live near one another and so investors should focus on buying a property in Phrom Phong, Thong Lor and Ekkamai which already has a very thriving community. 

This stretch of Sukhumvit has become popular since many Japanese businesses are based in Chonburi-the epicentre of Thailand’s manufacturing industry. Living in these neighbourhoods provides quicker access to this province while the family has easy access to the surrounding local Japanese amenities and schools. 

Landlords should also consider the type of property that Japanese gravitate towards. Like many expatriate tenants, there is a preference for condominiums over standalone homes due to access to facilities and some newer Bangkok condominiums have facilities geared at the Japanese community. These include Japanese gardens, golf simulators and Onsens helping appeal to this pool of tenants and should be considered when looking for a property for a Japanese tenant.

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It has affected everyone in one way or another as cities and countries have shut down to limit its spread. This closure might be temporary but its duration is unknown arousing uncertainty leaving many businesses unable to operate.

The first wave of harm from COVID-19 aside from the physical and mental effects of having the disease was reduced salaries and redundancies amongst the workforce as businesses were forced to shutter up or restructure, thus having a knock-on effect to their employees.

One of the first industries to be hit was the hospitality and retail sectors that should be in a position to recover once the lockdown starts easing but that is assuming that individuals have the disposable income to fuel these outlets.

Guide

The Benefits of Buying Young

The property market has a reputation for weathering storms such as economic dips and is often regarded as a robust investment asset. However, like many other sectors, it is unlikely to come out unscathed from a pandemic.

During the early outset of the outbreak, sales in the pipeline might get pushed through quickly should the buyer need somewhere to live or they could be delayed while a ‘wait and see’ attitude is adopted potentially with the hope of agreeing a lower price as the market starts to shift. 

Property values are driven by a supply and demand mechanism. Just like any commodity, if demand outstrips supply then its value increases but the opposite way round and the market is flooded, then buyers have choice and properties devalue.

The price of oil during COVID-19 demonstrates this as for the first time in history producers are paying traders to take oil off their hands due to sudden lack of demand. 

Whilst this is an extreme situation that would not be mimicked in the property market since property can be left empty whereas oil needs to be offloaded, some forecast that property prices will inevitably head on a downwards trend during a pandemic.

If people lack job security, buying or moving will inevitably get pushed on the back burner similar to during the last global recession in 2008.

This decrease in supply will lead to a market correction that does create a window of opportunity for those less financially affected due to the outbreak. Some people are profiting from the outbreak due to a change of living habits that are alerting spending habits or for example businesses that supply essentials during this time such as medical supplies and PPE. 

Sellers who can delay marketing their property should wait until the market irons out but for those in need to dispose of their assets, investors will have less competition and are in a better position to negotiate a deal. Simultaneously governments are likely to implement measures to reduce the impact on the economy such as lowering interest rates allowing cheaper and more affordable home loans. 

Buying a property during a pandemic is complex and it will depend entirely on the personal circumstances. Those in a safe and sound financial position could gain from cheaper property prices, more affordable lending, and even secure a property that might have originally been out of their reach.

However, purchases should be made for long term gains and not make a quick buck as gone are the days when a property could be quickly flipped for a tidy profit. 

Guide

Advantages of a new home

The advice? Assess your situation, calculate if you could afford a worst-case scenario should your financial situation suddenly change, shop around and remember that buying property is a long term investment and while we might have never experienced a global pandemic before, it will pass even though we cannot set a timeframe on when this will be.

Lastly, while property firms might have to change their operational format such as the introduction of virtual viewings, everyone always needs somewhere to live and this is why the property is regarded as a safe investment choice!

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Advantages of a new home

Greater flexibility

Buying a newly completed home is easy because it allows you the flexibility in decision-making. Home seekers who are not in a rush can buy during a launch or during construction; but of course, for those who want to move in immediately, the completed project is ideal as there are usually some units left over. These units are sold directly by developers, which means you get a brand new unit and there are usually a gamut of choices on various floors as well.

Affordability

There are other benefits too, such as affordability. The selling price of some new projects can be lower than resale homes, which means that you are getting brand new facilities at a better price and you don't have to spend more money renovating the place.

Guide

Foreigners Flock To Bangkok<br />

Property can be a worthy long-term investment. But like all investments, research should always be done. In the right circumstances, your investment can grow in value. Anecdotally, people have sold their units even before the apartments are completed. Others choose to use their property as rental units, and they could see returns almost immediately. 

So where can you buy a newly completed home? There are many such projects being sold all across Thailand as we speak. Many large developers have stocks of developments that are ready for occupation. So if you're keen to purchase a new home and would like to move in as soon as possible, then you might want to act now. Happy house hunting!

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In recent years, China’s government has been sticking to the principle that houses are used for living in and not for speculation, thus imposing restrictions on domestic real estate transactions by means of limited purchase, property tax, and higher lending rates.

This has pushed China’s home buyers and investors to shift their attention to overseas real estate markets. As a result, China replaces the U.S. and as the world’s largest source of cross-border real estate investors, according to the 2019 H1 Global Cross-Border Real Estate Investment Data Report released by uoolu.com.

Why Overseas Properties Are Attractive To Chinese Investors

As compared to China, the purchase of properties in other countries is not as restricted in terms of the number of units that can be purchased. Apart from this, there are obvious advantages as well:

While demands of cross-border home buyers lie mainly in investment, more have started to consider other value-added aspects, besides the capital appreciation and rental income. Home buying is also driven by factors such as immigration, education, and retirement. Investors are now trying to actualise more demands at the same time, for each property purchase.

By investing in properties outside China, the investors can also enjoy other additional benefits such as a better living environment, first-class medical care, international educational resources, easier access to realise multinational business expansion, more convenient visa policy and a chance to acquire permanent residency in a foreign country.

However, as traditional real estate investment markets in developed countries such as the U.S., the UK, Canada, and Australia become nearly saturated, China’s investors have started to pay more attention to Southeast Asian countries, especially those in the emerging markets.

Why Chinese Home Buyers Favour Southeast Asian Real Estate Markets

Cross-border real estate investors with a budget of RMB 1 million to RMB 3 million, is now accounting for 67% of the total population in China. Compared with far-fetched property prices in traditional real estate markets such as North America, Europe, and Australia, home prices in Southeast Asian countries mainly range from RMB 11,382/m2 (Kuala Lumpur, Malaysia) to RMB 32,104/m2 (Bangkok, Thailand).

The latter’s price range is similar to second-tier cities in China, thus making it more affordable to Chinese investors. Besides, there are fewer taxes and fees related to property purchases, and payment methods are very conducive for investment under limited budget.

Most importantly, properties in Southeast Asian countries are also commanding a high rental yield. Apart from a low investment threshold, investors also pay more attention to return on investment (ROI) in the real estate market. It is reported that a city with more than 5% of ROI can be rated as suitable for investment and cities such as Manila, Phnom Penh, and Bangkok all fall within this category.

In addition, a good majority of South-East Asian Countries allow freehold ownership of both land and dwelling. With the rapid urbanisation and the development of these cities, land prices in these countries can only increase, which in turn, will drive the property prices higher.

As for the developed countries such as Singapore and Malaysia, whilst there are certain entry thresholds for real estate investment, asset preservation and ROI are more evident as compared to properties in China.

Secondly, the largest age group of Chinese investors are those between 30 years old to 49 years old, which accounts for 78% of the total population. Majority of these buyers have reaped the fruits of the real estate and internet market boom in China years ago.

Not only are they equipped financially, these buyers have also become much more affluent, with the ability to source for overseas real estate investments. These buyers have now moved beyond the scope of investment as other intangible considerations like education and retirement become major factors in overseas property purchase. With international schools in China now over-priced, many of these Chinese buyers have found a cheaper and yet authentic alternative in South-East Asian countries.

The climate and ecological environment in some of these countries are also more suitable for own stay, especially for retirees. Coupled with a lower cost of living, more and more Chinese are beginning to migrate to these countries with their family through visa programs such as SRRV in Thailand and the Philippines, and MM2H in Malaysia.

Thirdly, like most investors, property value appreciation potential is another key factor in deciding to acquire overseas properties. Most investors would definitely go for a currency that is strong enough to hedge against any potential depreciation risk when selecting the countries to invest.

According to Uoolu’s user inquiries, Thailand is still firmly the No.1 in cross-border real estate investment due to the currency advantage. In the past 5 years, the US dollar depreciated by only 1.5% against the baht. Thailand’s baht is exceptionally strong amongst the regional currencies and this looks to be a sustained trend.

Last but not least, the “Belt and Road Initiative” rolled out by the Chinese government has enabled stronger diplomatic relations and increased investment with the South-East Asian countries. This is clearly evident in the huge infrastructure investment by the Chinese government in South-East Asia notably the East Coast Railway Line in Malaysia and the Thai-Chinese Rail Line.

These cross-border partnerships between nations will only boost the development of the Real Estate market in this region. In addition, these countries also use preferential tax policies and zero foreign exchange control to encourage foreign investment and foreign enterprises to enter their market, hence attracting more and more Chinese companies and entrepreneurs.

How Well Will Southeast Asian Real Estate Markets Perform?

How popular are Southeast Asian real estate markets? Let’s have a glimpse from the following hot investment destination countries.

Thailand

According to Thai media reports, one in five home buyers in Bangkok comes from China. Thailand is the No.1 tourist attraction in the world, and it’s the same to the Chinese. Due to its huge population and high foreign visitor influx, Bangkok is also a good rental market.

Since 2014, the GDP of Thai construction industry has risen from 55 billion baht to 77 billion baht. The rapid development of the construction industry has laid a solid foundation for the real estate industry, which is another strong economic pillar after tourism. Over the past 2 years, Chinese Internet giants such as Alibaba and JD have invested in Thailand.

Recently, China’s Huawei was invited to assist Thailand in developing the infrastructure and testing centres needed for 5G technology. Thailand is becoming more and more popular among Chinese investors, let alone real estate investors.

Singapore

Singapore, famous for its "Garden City" label is definitely one of the most livable cities in the world. Due to its strict law enforcement and high-quality education, Singapore is also one of the safest and cleanest cities in the world with a large ethnic Chinese population.

A country where English is widely spoken, Singapore is also known for good governance, political stability, transparency, efficiency and ease for doing business. This has helped put Singapore on the radar among foreign investors and made it an attractive property market. Another reason why investor like Singapore is the strength and stability of its economy and currency.

Compared with the heated real estate market in China, Singapore's property prices are relatively stable and suitable for investors who seek asset security.

Malaysia

From the perspective of exchange gains and losses, Malaysia has the lowest risk for asset allocation. Although the exchange rate fluctuates, it does in a very small range. Compared to the housing prices in more developed countries, Malaysia's investment cost is also far lower.

For example, apartments in Kuala Lumpur, the capital of Malaysia, cost one-tenth of those in Hong Kong, Singapore and Tokyo per square metre. They are also much cheaper than those in Bangkok, Manila, and Jakarta. Malaysia's GDP per capita and gross national income per capita are also far lower.

Vietnam

The opening up of Vietnam's real estate market saw much marketing efforts aimed at overseas investors. According to the data from CBRE, the proportion of Chinese investors buying luxury houses in Ho Chi Minh city in 2018 rose to 31% from 2% in 2016. Vietnam's famous tourist attraction, Nha Trang, also attracts numerous foreign investors due to its relatively low price.

Philippines

Since 2013, the Philippines economy has continued to grow, and home prices have risen along with it. In 2016, home prices in the central area of Manila already exceeded RMB 20,000 /m2, and in the last two years, risen to more than RMB 30,000/m2.

The total land area of the Philippines is about 290,000 square kilometres. The Philippines has a large population (the medium age is 24) and being a small territory, the housing supply is inadequate. As the population of the Philippines continues to grow, it is clear that such a trend will inevitably push up land prices, home, and rental prices.

Summary:

By virtue of low investment thresholds, high return on investment, robust economic growth, comfortable living environment, strong currencies and various preferential policies, Southeast Asian countries have been attracting cross-border real estate investors from other countries, especially from China.

At present, the growth rate of Southeast Asian countries is still high, and real estate professionals point out that there is still a lot of room for development in Southeast Asian countries. Due to the abundant labour force and low labour cost in Southeast Asian countries, manufacturing industry has been shifting to Southeast Asian countries, which has also contributed greatly to rapid economic growth.

If investors want stable returns, then Thailand, Malaysia, and Singapore are for their picking. These three countries have little investment risks and sound real estate markets. For investors looking for rental income, choose the Philippines with the highest rate of ROI. Vietnam, being a relatively new real estate market, has huge potential as well. For investors looking for property investment returns, there’s still “gold” in Southeast Asian real estate markets to be dug.

This article is contributed by Uoolu.com*

*Disclaimer: The views and opinions expressed in this article are those of the contributor. Please note that this article is purely for general information and does not constitute investment advice. Readers are advised to do the necessary checks and research on their investment beforehand.

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Whilst there are some brand names that have popped up in different locations across the capital, there are also some lesser known developers looking to make their mark. As with any investment it is wise to do your homework on the building, location and even the developer.

Buying from a reputable developer is of paramount importance to protect your investment regardless of whether it is a short or long term strategy. The larger and more well-known developers rely on their reputation for their future success, an element that private investors can take advantage of.

Word of mouth recommendations are an integral part of the property market, therefore, developers will focus on customer experience and care in order to generate as much good press as possible that will lead to more future sales.

Another reason to pick a property from an already established developer is their portfolio of existing properties that can be used as a guide for the overall finish and quality. This is especially important if purchasing off plan. Take time to visit the developers previous projects and if possible, ones of various ages to assess how they have weathered.

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Off plan purchases often fund the build of a new condominium by injecting cash flow into the project. Therefore buying from a lesser known developer naturally comes with its risks as if the sales do not take fruition then it is possible that anyone who might have already invested in the property will run the risk of losing their money.

Additionally, the larger developers will have a strong team who carry out extensive research and feasibility studies checking the viability of the property in its given location to ensure its success. Another element that private investors can benefit from.

Buying property is the single biggest purchase that most people will ever make. Therefore carrying out your own due diligence on the developer before parting with your cash is a vital part of any property purchase. Don’t just be persuaded by the marketing collateral, dig around yourself to see what other information you can unearth.

Read more insights about Bangkok property market and home tips, check out DDproperty Property Index Report, DDproperty Property Market Outlook Report and Property guides

The property market goes in cycles. However, even in the instance where there is a dip, prices will eventually recover and supersede previous peaks. Regardless of this, owning property is a long-term investment strategy so any blips in the market do iron on. >>How To Make Money From Buying And Selling Property

By investing in your own property means you will be paying off your mortgage and not your landlords. Instead of paying rent for someone else’s benefit it can help pave your future instead. Some people might have concerns about the inflexibility of homeownership since it does not make financial sense to move regularly which is a breeze if you rent. Therefore, it is advisable to buy a property that will also be suited to the lettings market too. That way if you change jobs and need to move closer to your new office, you can easily rent out the unit you own. Plus if you have been able to save up for a new deposit, then you can expand your property portfolio and use buy another unit to move into whilst the first ones becomes a buy-to-let investment.

Making the first purchase needn’t be out of arm’s reach. Start small with a property that is easy to maintain to minimise any outgoing costs. The bathroom and kitchen are the most expensive rooms to replace so remember this when looking for a starter home. This is also likely not to be your forever home so buying in a popular area, building or an upcoming area will help you resell or let later down the line. >>3 Promising Locations With Under-2-Million Condominiums

The bigger your deposit the lower your monthly payment to the bank. If possible try and save as much ahead of your purchase to put towards a down payment. New projects often offer promotions as part of their sales which are great for a first timer buyer, since they might include extra expenses such as furniture as part of the deal. Shop around and see what you can afford with your budget, and once you have secured your property hold tight but consider what your next move might be. Saving each month and taking the capital appreciation from your starter home will put you in good stead for subsequent purchases.

Read more insights about Bangkok property market and home tips, check out DDproperty Property Index Report, DDproperty Property Market Outlook Report and Property guides

When purchasing an off-plan property it is an absolute must to buy from a reputable developer to safeguard your investment. Also, with bigger names there will be plenty of their other buildings that you can visit to gauge their work. Have a look at their previous projects and take a note of the overall condition, the materials used and how well it is aged.

Getting into the first phase will give you the opportunity to cherry pick a unit choosing one with the best layout for your needs or a tenant should it be a buy-to-let investment. Additionally, you can choose the floor and what direction it faces as to whether you want a sunrise or sunset setting. Plus, you may want to live closest to the lift if you would prefer to speed up your commuting time, but likewise, you may be inclined to choose a unit at the end of the corridor for the sake of privacy since no one will walk past your front door. All these preferences are very much personal choices and are the beauty of buying property off-plan since you have the pick of the bunch.

All developers will have a show unit at their marketing suite. Many will dress the room to look like a five-star hotel but don’t get too blown away with this since many, it not all, of these items will not be included in the purchased unit. Look beyond the furnishings that are trying to sell you a lifestyle and look at the more practical items. Such as ceiling height, window quality, air conditioning units, fitted storage, as well as the finishes such as the bathroom, kitchen and floors. Once all the dressings have been removed from the room, you will only be left with these items anyhow.

Once you have picked your ideal unit, check with the developer their payment terms. Some property investors speculate with off-plan purchasers and will sell on even before the unit has been built. This can make for a lucrative investment since you will not be required to pay the full funds of the unit before you sell. Having a good eye for detail it vital for these sector of buyers as they need to make sure they buy in the right project and the right unit too.

Read more insights about Bangkok property market and home tips, check out DDproperty Property Index Report, DDproperty Property Market Outlook Report and Property guides

Asia has a fast-growing middle class. Many people strive to reach this status since the middle class have a disposable income. Their money is spent on services and commodities that could be deemed a luxury rather than a necessity. The increasing number of people falling into the middle class bracket can be reflected on the streets such as with the opening of new shops, restaurants, and entertainment options. Even the number of cars on the road suggest the wealth of the population.

Gentrification occurs as a place becomes more in demand. Initially people move to an area thanks to the cheaper property prices on offer whether that it is owning or renting. These people map out the area in the first instance and usually come from creative or freelance backgrounds where wages are lower so there is a need for more affordable housing. Overtime their friends follow suit. Small businesses start emerging to cater for this growing population who have extra cash to spend. It takes just one hipster coffee shop to suggest what direction the neighbourhood is heading in. More businesses follow, and a snowball effect occurs with more and more business opening shop to cash in on these spenders.

In turn, other people eye up in the area in response to these increasing services. Generally those that arrive later aren’t brave enough to join in the first wave since they appreciate living in an area that is already well established and has their luxury services in place. For property investors, buying in an area that is being earmarked for gentrification is a lucrative way to generate a profit. >>>Property Mortgages Calculator

As demand in gentrified area steps up, property prices increase too since demand outstrips supply. The area has been transformed thanks to this increased investment. Even the infrastructure and roads will benefit too, the area looks more polished. For some investors this is the time to sell up and then reinvest in the next upcoming area. 

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Popular areas are so for several reasons. The range of services is vast, for example, good schools, hospitals, as well as entertainment options such as restaurants, shopping facilities, and other evening nightlife. Residents relish in this convenience resulting in minimal travel to reach the places they want. Similarly, these loved corners tend to boost connectivity. Whether this is close to the mass transit network or other infrastructures such as the road or airport.

These amenities push up prices meaning some may not be able to afford to buy property here. However, that is not to say that these investors cannot take advantage of its reputation. As an area becomes desirable it also gets bigger, spilling out into the neighbouring locality. These adjoining spots will inevitably be at a lower price point, perfect for investors wanting to be in the fashionable area but whose budget cannot stretch. >>>Property Mortgages Calculator

As places become in demand, businesses will follow suit. Coffee shops, restaurants and shops will earmark it and want to cash in on the action. This will also push up commercial rents forcing some to look to the outlining areas for their venture instead. Just one new opening can suggest the confidence in the said neighbourhood, and quickly others will follow suit. For property investors, this is a clear indicator of an area that is on the up and is the time to buy.

Buying property close to an already popular area also suits investors who do not have the courage or knowledge to buy in a completely new vicinity that is yet to become well-established, such as a part of the city that the government have designated for gentrification. Choosing to live close to a fashionable part of town is ideal for those less risk-averse, and who want to enjoy the surrounding amenities immediately.

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How much you spend on the purchase will entirely depend on your personal situation however whether this is at the bottom or higher end of the scale, it is important to know that you are making a sound investment. The property has become a credible asset class so for many buying and selling properties is a means to make money.

Your intentions might be to hold onto the property for a short period and then sell with the aim of making a substantial profit. Should this be the case then speculating on new developments could an option. Buying in the first phase where prices will be at the lowest will come with its rewards. Speculators need to have their ears to the ground to be the first people walk through the marketing suite’s door when units are released." title="Making The Most Out Of Your Property Viewings" category="Guide"]https://www.ddproperty.com/en/property-guides/making-the-most-out-of-your-property-viewings-10012[/article]

For some, especially investors who are new to property, this strategy may be considered too high risk. It is imperative to carry out due diligence on the property and on the developer. Take time to research the area and understand every aspect of the building. As momentum for the development gathers pace, there will be increased interest and prices will rise accordingly. Some speculators ‘flip’ selling before the building is even complete.

Another way to make money on a property is to improve it. This could be as simple as upgrading the kitchen or bathroom, painting in a modern colour, adding some more modern touches or be as complex as reconfiguring the apartment to make the best use of the space. Upgrading a property is not for the faint-hearted, but it will be worth it since so many people are reluctant to go down this route and would rather move into a property that is already done.

For longer-term returns, look for areas of improvement. See where the government and other businesses have earmarked for development and piggyback on its success. This could be the extension of the mass transit network which naturally will draw more people to a location or even a whole new area that is been designated for regeneration. It could take time for these improvements to pan out, so investors need to be prepared to sit tight for the long haul before gentrification takes shape and property values heads upwards." title="How Important Are Facilities?" category="Guide"]https://www.ddproperty.com/en/property-guides/how-important-are-facilities-9938[/article]

Read more insights about Bangkok property market and home tips, check out DDproperty Property Index Report, DDproperty Property Market Outlook Report and Property guides

Viewings or inspections as it is all commonly known as, are vital in buying a property. Seeing several properties at one time can become confusing and afterwards it can be hard to decipher each one. It is advisable to document each one by taking photographs and starting by taking a snap of the front door to differentiate between each viewing.

Once you have shortlisted the properties, going back to view for a second or even third time will determine which property suits your needs the best. This will give you the opportunity to look out for anything that you may have missed, as well to see the properties at different times of the day. For example, the school next door may easily be missed whilst viewing at the weekend, but on a Monday morning this could be a very different story.

The purpose of viewing on a second or third occasion will allow you to look through any practical aspects, this can even include whether your furniture will fit. Take a tape measure and the dimensions of your furniture to check the sizes of each room. Have a good look around and don’t be shy to open cupboards and doors.

Remember to try and look beyond the unit’s contents. Show homes of new developments will carefully select furniture in a bid to sell a lifestyle, so don’t get swayed by the beautiful dressings that could be hiding something. For example, if a room isn’t the biggest then smaller furniture will give it the appearance of being bigger, so a measuring tape will be able to check this for you.

As well as having a good look around, ask the practical questions too such as Internet connections, service providers and whether you can fit a dishwasher if that is your priority. The answers to any for these questions can all influence your decision.

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Read more insights about Bangkok property market and home tips, check out DDproperty Property Index Report, DDproperty Property Market Outlook Report and Property guides

The range of facilities is heavily influenced by the budget and the type of resident the condominium is aiming for. But even the lower ends will have a swimming pool and gym. So what value do facilities bring?

Communal areas are maintained by the building through the common area fee. This is one point to consider as this annual cost will increase with the range of facilities. Therefore, if you are conscious that you want to keep your costs at the lower end that choosing a condominium that has a sky lounge, multiple swimming pools or even a golf simulator is probably not for you.

Many tenants choose to live in a condominium for the ease that they provide. Creating an environment to live, work and play, the leisure aspect can easily be ticked off at home. As a bare minimum most tenants will expect a swimming pool and a fitness centre and the higher the quality of these the more the rent that can be achieved. Tenants will see these as a plus as they can work out at home and put the money that they would spend on monthly gym membership into their rent instead.

For completed projects carefully look at the quality and the maintenance of the communal areas. This will provide a clear indication of the management of the building. Communal areas that are not clean or left in disrepair are a tell-tell sign of bad management and potential conflict in the building. Investigate these further and don’t be afraid to discount a condominium on this fact alone as it will affect the value of the units as well as its appeal to tenants and future purchasers.

Buy-to-let landlords wanting families as tenants should look at facilities for children. Having somewhere for their little ones to play is of utmost concern and will create a community feeling too. Many families will decide on what building they want to live in on this alone. For landlord’s seeking young professionals or millennials, then having space to work is important. This could be in the form of a co-working space or even just a library. And if the property is for yourself, then consider what you value the most now to make sure you make the most of the building for as long as possible.

• How To Save For A Deposit, And Quick.

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Read more insights about Bangkok property market and home tips, check out DDproperty Property Index Report , DDproperty Property Market Outlook Report and Property guides 

Today we introduce the top 3 locations where properties under 2 million baht exist. Let’s find out where it is.

Rama 9

Rama 9 continues to be an in-demand location from Thais and foreigners thanks to the convenient transportation options. The area provides access to Sukhumvit, Ratchadaphisek, Din Daeng and Vibhavadi Rangsit Roads, with Sri Rat Expressway easing the traffic congestion during rush hour.

For mass transit, there's MRT Blue Line (Phra Ram 9 Station) and the upcoming MRT Orange Line (Taling Chan-Min Buri).

Rama 9 is also abounding with prominent lifestyle amenities and office buildings such as the AIA Capital Centre and the two famous department stores, CentralPlaza Grand Rama 9 and Esplanade.

Rise Rama 9 and Supalai Veranda Rama 9 are the promising projects expected to complete in 2019.

Rise Rama 9 and Supalai Veranda Rama 9 are the promising projects expected to complete in 2019.

Charansanitwong - Pinklao 

Aside from the BTS Green Line (National Stadium-Bang Wa) which had been extended to Thonburi side in 2009, Charansanitwong is about to have the MRT Blue Line’s extension (Hua Lamphong-Bang Khae) as part of the mass transit as well.

The Blue Line’s extended route starts from Hua Lamphong Station and heads toward Wat Mangkorn, Sam Yot, and Sanam Chai Stations where Pak Khlong Talat (Flower Market) is.

Moreover, Charansanitwong is notable for its retained traditions of the community’s way of life. There’re still several floating markets to be found where many locals still reside by the streams and canals.

The traditional way of buying and selling food and products as well as the art and cultures are much remained in Charansanitwong, juxtaposing with the infrastructure development. This charm attracts both Thais and foreigners to the location.

Plum Condo Pinklao Station and The Parkland Charan-Pinklao are the promising projects in Charansanitwong.

Plum Condo Pinklao Station and The Parkland Charan-Pinklao are the promising projects in Charansanitwong.

Outside Bangkok (Hua Hin and Sriracha)

Finishing off with locations that are a bit distant but not too far like Hua Hin and Sriracha. Why is Hua Hin a promising location for real estate investment? The location is renowned as one of the most popular weekend getaways for Bangkok citizens.

Located merely around 200 kilometres from the capital city, Hua Hin is imbued with nature and sea as well as urban amenities like department stores, restaurants, and the old favourite Cicada Market.

Sriracha is one of Thailand’s largest industrial estates where residential demand is strong. Massive investments from both the public and private sectors help this district to flourish with economic activities, infrastructure, public amenities, attracting money from foreign investors and local citizens who seek residential properties alike.

The Water Beach Chaam-Huahin (1.3 million baht only!) and Golden Town Sriracha-Assumption (Although it's not condominium but worth it!) are the promising projects in these locations.

The Water Beach Chaam-Huahin (1.3 million baht only!) and Golden Town Sriracha-Assumption are the promising projects in these locations.

Our recommendations are just a few of many condominium projects in Thailand with price under 2 million baht and an ideal location. We have many more projects where you can search or read reviews, as well as a mortgage calculator to assess your finance before you make an important decision.

But how can you identify an up and coming area? Interestingly these places such as in London are the neighbourhoods that were once more affordable. Lower property prices and rents pushed out people to these areas often led by more creative people, whose freelancing employment status has a less stable income with a lower budget to spend on housing.

As the community started to grow, shops and places to eat started to emerge, more people frequented the area to live and play, and before you know it the hordes come tempted by the lower property prices before they head in an upwards direction. It is a simple supply and demand mechanism. 

That is not to say that buy in an area that is cheap, it needs to have several factors for it to increase in popularity. Bear in mind that being close to the mass transit network is a concern as people will want to have a quick commute to other parts of the city. Additionally, keep an eye out for new openings. If a new bar or café has opened then it is likely that more will make an entrance soon.

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Those who are willing to invest their business in the area would have carried out a fair amount of research before taking the plunge. This provides a certain level of reassurance for your investment.
This pattern can be seen in many of Bangkok’s prominent locales.

It started with just one place opening and before too long a whole host of services and amenities have appeared so that residents have everything all in one place.

The best place to start with searching for an up and coming area is to pick somewhere close to an already popular area. As the already fashionable area grows, it will spill outwards. Restaurants and shops will venture here to take advantage of the cheaper rents, and the pattern keeps repeating.

Alternatively, choose somewhere that has been earmarked for regeneration whether that is with government funding or by infrastructure growth. Keep your finger on the pulse to identify where this will be.

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Some places such as London actively encourage people to use this form of transport in favour of a car. New developments often lack parking to discourage car ownership with some residents only having the option to park on the street.  

Commuting by either bus, train or even by pushbike are transport methods used by the majority with a mere minority driving their own car. Those who wish to drive in the centre of London also pay the Congestion Charge, a daily fee to deter driving. Consequently, the sheer volume of people using the mass transit network is high and living as close to it as possible is extremely appealing.

Whilst this reliance is not as apparent in South East Asia cities, it is a model that governments are trying to adopt. Growing infrastructure is very much on the agenda in Bangkok where the traffic is immense.

Much of the city regularly coming to a standstill especially within commuter times not to mention that affect it is having on the environment. The numbers of people that are using the mass transit network are increasing daily hence people want to live as close to it as possible to shorten their travel time even further.

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There is a demand from tenants wishing to cut down commuting times. Vicinity to the closest station is at the top of renters wish lists when choosing their property. Demand for this type of property then becomes high generating a healthy rental yield. This, in turn, helps to boast capital appreciation too. With only a limited amount of space in Bangkok, buying close to the mass transit network will pay off as space becomes scarce pushing new properties further from the station.

It is also worth considering that a property closest to a station that is one stop from a popular neighbourhood is a better investment than a property further from the popular neighbourhood’s station. The mass transit network in Bangkok is quick and reliable, so this journey one-stop will most likely be quicker than on foot or battling by car.

When looking to invest in a property whether it is for your own use or for a buy-to-let investment then look at the distance to the mass transit network. Don’t just think about your needs but also future tenants or the next owner should be planning to sell the property on. And test the distances the developer gives on their marketing collateral by foot to ensure that it is correct.

Even better still, buy a property where the mass transit network is planned to extend to. Keep your ears to the ground and you will no doubt see developers hop on board to new locations where the mass transit will be knowing that there will be demand for this area. Being the first one to buy will also come at a lower price tag too!

Receive the latest guides on email from Thailand’s No.1 property website here, or read more project reviews

They are your go-to person when looking to sell, buy or rent a property. If you pick the right agent, they will be your golden ticket to securing the right property.

Real estates are on hand for every stage of property sales from marketing through to completion. A good agent will work with the seller to advise when the property is ready to be put on the market and to ensure that it receives the exposure needed.

Invest in a property

If you are looking to invest in a property, then a good agent will make this process much easier.

"Simply search DDproperty Find Agents"

One that will be proactive with your search, who will ascertain exactly what your needs are and propose suitable properties will be worth their weight in gold. They should advise if you are being realistic with your wish list and be able to figure out what your top list of priorities are.

It is easy for an agent to take you to view the unit that you initially inquired about, but a good agent will compile a list of other suitable buildings and units and show you these too.

After a few viewings, it will give them an idea about what you do and don’t like, to eliminate ones they had thought of and propose other options. If there is a building that you desperately want to be in, they should be able to find a unit in that building too.

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Real Estate Agent

Hence it is important to work with an agent that you have a good rapport with. One that you can trust to not waste your time showing you unsuitable properties. They should also work hard to agree to a sale on your behalf for the price you want.

The first way to gauge a real estate agent for their professionalism is with the first contact you make with them. One that responds quickly and keep you updated will demonstrate their ability. They should be keen to get your business, and make you feel like that you are the only person they are looking for even if they are dealing with multiple buyers.

Receive the latest guides on email from Thailand’s No.1 property website here, or read more project reviews

Many expatriate families and retirees have moved to the area to escape the bustle of the city and enjoy the lifestyle on offer here. 

The market is awash with a range of property options regardless of budget and styles. Whether that is a condominium unit by the sea or a private villa with pool. Buying property in Hua Hin has become a lucrative investment with a demand for rental property and for resales too. But what factors are luring people to this pretty beach haven? 

1. Natural environment

Hua Hin boasts a long expanse of sandy beach but also swathes of greenery too. Here you can bask in beach life, enjoy local seafood by the water in Hua Hin’s old town or sample the local wine at the vineyard deep in the hills.

There are national parks and even conservation centres to visit wildlife including elephants. The natural environment is at its best in Hua Hin and is a big draw for those living here and those wanting to come and stay. 

2. Strategic location

Aside from the Bangkokians that frequent this seaside city, due to its vicinity to Thailand’s main airport Suvarnabhumi in Bangkok, it is also visited by holidaymakers who want a glimpse of Thailand’s beaches without having to take another flight down to Krabi or Phuket.

There is a range of hotels suited to all budgets plus an increasing number of rental options for those looking for short and long term lets in private accommodation. 

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3. Host of amenities

Shopping malls, international hospitals, and schools, countless hotels as well as fitness centres, Hua Hin really does have it all. There are restaurants, cinemas, and even an annual Jazz festival.

4. Recreational activities

The conditions in Hua Hin are ideal for kite surfers and many flocks here to take to the waters. Golfing is another popular pastime thanks to the number of pristine courses, some of the championship quality.

The countryside also offers great terrain for runners, cyclists, and hikers. It is a mecca for those who love outdoors life whether that is kayaking on the water or horse riding in the countryside.

5. Slower pace of life

Despite Hua Hin having everything you need for everyday life, it is a far cry from a busy place to live. It provides an ideal lifestyle suited a range of ages for those who want to mix city life with the attractions of the great outdoors on their doorstep

Receive the latest guides on email from Thailand’s No.1 property website here, or read more project reviews

Like any investment, the figures need to stack up for the sake of profitability. Pick the wrong property and your hopes of enjoying any generated income could be dashed. Regardless of your end motive, it pays to do your homework as there will some factors that apply to both types of investment.

Firstly, you should buy from a reputable developer to ensure the property’s longevity. Many well- known developers have a portfolio of previous projects, making it easy to check their track record of quality and workmanship. Location is as important as ever, but the location is likely to differ for a buy-to-let property rather than for your own use.

• How To Successfully Negotiate On The Price Of The Property

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For investment purposes vicinity of mass transit networks is imperative. Tenants will want a quick commute to their workplace or even where they like to socialise.

Whereas if you are buying a property for your own use, you may want to be closer to family or the airport if you travel a lot. A big house with a garden may be suited to your plans to have a family, but a tenant is more likely to favour the convenience of a condominium in the center of the city.  

If you are buying your dream home, you are may not be shy to get stuck into some home improvements. Replacing bathrooms or kitchens will allow you to place your own stamp on the property, making it exactly what you want to be. This will also increase its value too. However, tenants will want to move into a property that is already done so you will need to consider any work ahead of renting.

Remember tenants will want to live somewhere hassle-free and a landlord will want a property that is easy to maintain to will incur minimal maintenance fees that will not cut into potential profits.

Should the end goal be to receive capital appreciation on the property, then think about buying in an area that is expected to increase in value. Research to see if the local government has earmarked any areas for regeneration or any impending infrastructure growth.

Tenants may not be quite so keen to live in an area that is yet to be well established, so anticipate receiving lower rents during this period, but if the property is for your own use, enjoy this lower price tag the property came with until the area improves.

Receive the latest guides on email from Thailand’s No.1 property website here, or read more project reviews

A good agent should be on hand to assist you with the process, but there are a number of points to be aware of to help you along the way.

Firstly, sound out and gauge the other party. Before the negotiations start it is worth sussing out the other party. Once you know their position it can be used as leverage as part of the process. Are they desperate to sell to free up funds? Can they transact immediately? Or are they in no hurry at all? The answer to these questions will determine how much bargaining power you may or may not have.

From the outset, be nice to your agent. It is likely that they will be the middleman between you and the seller. Get them on your side and they may let you into some insider info on the other party.

Remember the agent works on commission so you will also want to achieve the highest price to line their own pockets, so keep your cards close to your chest whilst appearing to play ball.

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Maybe mention that you could increase your offer by 2 percent when in fact the real figure is 5 percent. This will give you some room to negotiate and the buyer will see that you have reached the top of your budget.

Charming your agent will go a long so building a good relationship is key. They will then want to help you secure a property, agree with a sale before moving onto their next purchaser.

Finally, offer and point out your merits. When placing your offer be sure to back it up. State why you have come in at that price whether it is because a similar unit in the building sold for the same price or because you think it will cost a certain amount of money to replace something faulty in the property.

Providing comparable evidence is a concrete way of supporting your offer and will bring awareness to the seller in case they are not up to speed with the current state of the market.

Receive the latest guides on email from Thailand’s No.1 property website here, or read more project reviews

Not many people realise that house and condominium brochures should be kept throughout the period of purchasing the property – from the unit inspection day, transfer day, till you have settled in the unit for some time – because the brochure is not merely an advertising material, but also a legal document which preserves the rights of every property purchaser.

Especially buyers who have considered purchasing units in an off-plan project, all documents should be kept safely including brochures received from the sales office, advertisements in the newspaper or other media, and pictures of the show units. These can be used as evidence in case the final product happens to be different from what had been declared.

Office of The Consumer Protection Board (OCPB) states that all things and rights developer claimed to provide customers are promises which should be delivered accordingly.

In spite of this statement, we must be aware of our rights whenever we sign a booking document or a sale contract – whether or not it’s a high-profile or small-scale project. Large-scale projects, due to the massive number of residential units, have the possibility in defaulting promises, in addition.

Besides keeping the brochure and documents safely, it is equally important to read them thoroughly – especially new generation consumers who spend less time on reading. Make sure what stated in these papers are the same as in the sale contract, because after your signature has been written down, it automatically means you have accepted all terms and conditions which are difficult to change later on.

All promotions and privileges should be noted as well whether or not they are stated in the contract. Remembering words from salespersons alone doesn’t provide you any tangible evidence, plus, there are a great number of them who, of course, don’t inform customers exactly the same thing.

Have you got the brochure in your hand? If not, see if the sales office is still open and get ahold of it in time. For those who are considering to purchase a completely-constructed house or condominium, a brochure might not be significant. Though, you should inspect every detail of the unit that matches what stated in the contract before signing.

As the nation’s economy is transforming into Thailand 4.0 which brings higher technology and innovation into our daily lives, it is important to be attentive to every detail in order to protect our rights.

And brochure happens to be a secretly crucial evidence every property seeker can use to protect their rights.

Check out these related articles

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Outshining projects are normally sold out within a few days, and most projects allow consumers to reserve units during the presale period. Unfortunately, not many units, especially ideal ones in terms of floor level, located in the floor plan and views, are left for general consumers to choose, as they are usually taken early by privileged ones in the VVIP, VIP, and Employee rounds.

Luckily, if ideal units are still left in the presale phase, general consumers would still have to compete for them – unless they aim to live on the lower floors which don’t offer any great views.

Hence, buyers who have a chance to book units early should select them wisely with comprehensive knowledge about their locations in the floorplan, because the unit’s location has a crucial impact on living and investment in the following time.

Choose by the floor level

Floor level is the very first important thing you should consider because, besides its impacts on living and investment, the safety aspect is also involved. Generally, buyers tend to choose units on the upper floors, where the view is not blocked by nearby buildings, the air circulation is well ventilated, far from noise pollution and unwelcoming insects, mosquitoes, and poisonous animals.

Moreover, living on the upper floors also negates the chance of flooding. Notwithstanding, you should not select units on the highest floor because the amount of heat transmitted from the roof might be high, and the room’s ceiling might be prone to water leakage when there are continuous periods of rains. Likewise, you would want to live 2-3 levels below the top floor, or lower than that.

If you concern about fire, select units on the fifth floor or above, or the lowest level which is still higher than nearby buildings; the lower the floor, the stronger the mobile phone signal, and the fifth floor is already high enough to be away from noise pollution and poisonous animals, in addition. Hence, levels below the fifth floor are not recommended due to various stated issues.

In reality, relating to feng shui (Chinese belief about location), the most interesting floors among buyers are the 5th, 8th, and 9th, while avoided floors are the 13th, 12A, or any floor that translates to the number 13, as people believe it’s a number of misfortune.

Choose by unit’s direction

The direction is another factor having effects on the living and investment of a unit. In terms of living, most buyers tend to choose units that face toward the east, because the room will be well-lit by sunrise in the morning and cool off in the afternoon as the sun descends.

On the other hand, units facing the west will be heated by the sun in the afternoon and becomes a decent oven when residents return to the room after work.

However, units facing the east are not always the best option as Thailand’s climate is extremely hot and volatile. In general, monsoons will come from the south and west for eight months, and the rest four months, wind breezes will come from the north and east. In other words, it is difficult to conclude which direction is the best for units to be facing.

It also depends on buyers’ personal preferences; some residents who want to avoid the sunlight completely would select a unit that has windows facing toward the north, and balcony facing toward the south. There’s also an old belief that the head of the bed should not be facing toward the west, as it refers to the direction dead persons lie down. 

Choose by unit’s location  

After you have the right floor and right direction in mind, next thing to consider is the unit’s location in the floorplan. In most cases, units that are taken early and barely left for general buyers to choose during presales are the corner units, because they hold a privilege of having a 270-degree view or two vantage points to overlook the cityscape; corner units facing toward the east and south are especially interested.

Corner units are priced higher than inside units and often reserved early by potential buyers in the VVIP and VIP round, such as executives and insiders. As corner units are hardly left for general buyers and their prices are possibly too high, inside units should be more considered with these characteristics.

Ideally, units should be distant from the mechanical room, elevators, fire escape, and trash room, because these areas have high traffic that might disturb your privacy, and may create undesirable smells in case of trash room.

Another concern is that your unit’s main door should not be jammed with the neighbor’s when opened, but modern condominium projects usually have residential units located diagonally across each other to create spaces between each room.

• Here are the primary factors which guide or help you to decide the location where you want to live.
• You can find more properties that suit your location HERE.

 Choose by layout and features

After exploring three external factors, now let’s look at the internal factors which are the layout and features. Unit’s layout and features definitely have impacts on the living, and investment when renting out.

Exemplary unit’s layout should be organised and has no confined nooks or corners where residents could not put into practical usage. In other word, every square metre of the room should be utilisable. In bedrooms, regarding buyers who concern about feng shui and old belief, check whether the head of the bed points toward the west or not, especially bedrooms where the project provide a fixed setting: wall-mounted TV toward the east and bed toward the west – in this case, look for other units with different setting.

In the bathroom, though most projects provide a similar design with the only distinction in the usable area, check whether there are exhaust fan, windows, or bathtub or not, because these features will help complement the room to be appealing when you decide to rent out – especially the bathtub, a favourite fixture among Japanese.

In addition, the bathroom should be easy for cleaning, and conveniently connected to the bedroom. Some buyers even consider solely on the bathroom when choosing a unit. Next, the balcony should have electrical and water systems for setting up a washing machine; a standard washer requires the balcony’s area to be at least 60 x 60 cm.

Eventually, if you couldn’t manage to choose the best units, regarding the 4 mentioned aspects, try looking for distinctive units. For example, typical units that happen to have the balcony slightly larger than others – extra space for plants or outdoor furniture, or units which are adjoined to the project’s swimming pool, ready for residents to jump in upon opening the door.

Besides ideally-located units, these distinctive units are also popular among buyers, but the price, of course, will be higher than the ordinary ones as well.

Check out these articles including

• 10 properties of a high privacy condominium

• Under-Construction vs Ready-to-Move Condominium

Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews

Among different sources of information, project review is one of the most powerful tools in giving insight and knowledge about a specific property.

However, with the property market becoming more and more competitive, some information found in project reviews could be easily exaggerated; thus, reading project reviews with negligence could lead you to misinterpret the project and, therefore, come with false information. Here are the two main points to keep in mind when reading project reviews.

How To Read Project Reviews In An Effective Way

Research shows Thai people read only 7 lines per year on average, which is insufficient to gain knowledge from any content. A lot of consumers skim through the project review and look mainly at the pictures. They often find the pictures captivating and decide to visit the actual site but find the project doesn’t meet their expectations.

This is a true case that doesn’t only waste consumers’ time but also the impression of that project. What you should do, instead, is to read the project review thoroughly, analyse strengths and weaknesses, together with the pictures.

Moreover, you should also read project reviews from other websites, especially from reliable ones. After you’ve gained a lot of information and find the project interesting to you, then you can go to visit the real site and proceed with further decisions in an effective timely fashion.

• You can also read more project reviews HERE

Don’t truly believe what you read and what you see

Some project reviews are special advertised, meaning the developer had paid extra money to have the content very-well written. The information in a special-advertised project review could be biased in favour of the developer, so you need to be extra careful when reading this type of project review.

However, some websites don’t specify whether the review is special-advertised or not; in this case, try to focus on the fact and numbers instead of the flowery words. Another thing to bear in mind is that most pictures in project reviews are taken through the wide-angle lens which projects the room to be broader than usual.

Always visualise the room to be slightly smaller and if the website happens to provide a 360-degree virtual tour video, capitalise on that as you can observe throughout the unit on your computer as if you are walking in the actual room.

Check out these related articles

• How to buy a home in Thailand

• Considerations before buying a property

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• Find more properties for sale or more review properties which below 1 million baht. 

Location

Location is the first priority you should concern. Is transportation convenient? Is it close to any public transit? How close is it to the community area? A good location will affect your life positively, and benefit you when resell the property in the future.

Property in a good location will have its price adjusted higher than the average when there’s strong demand in the market. Property in a good location also has a greater chance of resale or finding a tenant if you decide to rent out.

Not withstanding that, choosing location also needs to be in line with your personal taste and true goal of living there. If you dream of a peaceful tranquil open-space neighborhood, then looking for a property in suburbs would be more ideal than properties in the central city.

Meanwhile, if your concern is to live somewhere convenient in reaching your workplace or aspire city-life style, then properties in the city would be preferable.

Credit Line

Nowadays it becomes easier to own a property. You need to pay down payment which is around 20% of the property price, and the rest will be paid periodically through a mortgage. In the meantime, you can live in the property, but the ownership will be granted to you only if the loan is paid off.

To give an example, assume you decide to buy a house priced THB 1 million; you borrow a mortgage with the term 30-years, and need to pay THB 7,000 per month. In this case, your salary should be at least THB 23,000.

In other words, your monthly installment shouldn’t exceed 30% of your salary. In any circumstance, banks do not lend a mortgage easily; they need to check your financial statement, past records, and all types of debts you might be owing to some parties.

If you happen to be repaying other loan in the meantime, such as personal loan, then there’s a chance for bank to reject your application for the mortgage.

The higher salary you earn, the more credit line you could borrow from the bank. However, it is better to borrow a small amount as possible, because of the higher the amount you borrow, the higher interest rate you need to pay.

If possible, pay more on the down payment, then the task to finish off paying off your mortgage will be much easier. Don’t fall for a promotion where banks provide high-credit line loans; assess your financial ability first. Perhaps, collect more money for the down payment until you’re confident to start paying a mortgage in the long-term and eventually own property yourself.

Other Expenses

Besides the mortgage that you need to pay, living in property also comes with other expenses such as maintenance fees, insurance fees, and utility bills. Whether you live in a condominium or a housing project, the maintenance fees must be collected monthly or yearly by the juristic person.

The maintenance fee is used to repair and maintain the facilities of the project, including salaries that they need to hire janitors and security guards.

Another expense is the budget for furnishing and refurbishment. If the property comes in the form of fully-furnished, then there will be no expense in this area. However, most properties are sold in a fully-fitted feature, providing only basic furniture and appliances.

Products such as washing machines, mattresses, and cooking appliances and utensils are not likely to be provided. Even if the property is already fully-furnished, you will be certainly buying new furniture from time to time. Therefore, this is another expense you need to consider, and it can cost up to THB 100,000.

In conclusion, these are the 3 main points you need to consider before buying a property. Always put reasoning before desires and visualize which property is suitable for you, and how you would own it while exercising your finance in a healthy way.

You can try DDproperty's mortgage calculator to figure out how much you can afford, how much you should borrow, and more.

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Frequently we were informed that the project has high privacy, whether through advertisement, salespersons, or the project reviews, but only until we’re living there that we find the message misleading. Therefore, we have listed 10 properties for you to check out that the project you are considering to buy is truly a high-privacy one.

Distant from Noise Pollution

Even though the project is in a prime location, that also means the place is likely to have high noise pollution from the surrounding amenities: nightlife entertainments, department stores, and events. Especially a project that situates next by the main road will give buzzing sound from the cars until late at night. For those who prefer a serene-atmosphere project, low-rise condominiums are more suitable.

Units Per Floor

Next thing you need to look at is the units per floor. In general, high-rise condominiums have around 30 units per floor, which is high enough to create disturbance from the noise of people walking in the corridor.

However, there are some high-rise condos which have only around 15-16 units per floor, a quantity that can provide tranquility. Low-rise condos, on the other hand, certainly offer more serenity due to its less total unit almost in double.

Single Corridor

Most projects are designed in double corridor, a passage on each floor that has residential units on both sides of the walls. A single-corridor project will create more sense of privacy as there will be fewer units on each floor and fewer people passing your room. As well, you won’t be encountering neighbours on the opposite side upon leaving or entering the room.

Balcony’s View

Besides organised layout in the room, the balcony area is also important and shouldn’t be overlooked. Some projects have multiple buildings (Building A, B, C, D), or one building designed in U-Shape, H-Shape, or L-Shape; a high-privacy unit should have a balcony that offers a clear view, without the vision of the nearby road or another unit’s balcony on the opposite side.

Despite some distance between the buildings, having a view of underwear on a drying rack on the opposite balcony will surely not complement a sense of privacy.

Distant from Elevators

Many buyers choose units close to the elevators for the convenient access, but in terms of privacy, units which are remote from the elevators are more suitable. If your unit is next to the elevators, all tenants on that floor must walk pass your room, thus, creating interrupting noise of steps. You would also hear people talking while they wait for the elevators, and beeping sound when an elevator arrives.

Units Per Elevator

To have great privacy in the project, one elevator should be used for only 100 units. However, some high-rise condominiums use an elevator to accommodate up to 120-150 units; this will slow down the flow and result in queues, thus, lessen the sense of privacy in that area.

Low-rise condominiums, in contrast, have only around 30-50 units for one elevator, providing a greater flow and privacy in this area. Some luxury projects provide a private elevator that sends the resident right in the room’s foyer for the ultimate privacy, in addition.

The Residences at Mandarin Oriental, Bangkok is one that offers private elevators.

Access Control Elevator

Nowadays, most projects offer Access Control Elevator, a system that allows residents to access specific floor via keycard. This has been a widespread practice as it does not only give the privacy, but also the security. There will be no strangers walking in the same corridor with you.

Facilities Area

A high-privacy condo should have its facilities area separated from residential areas. The facilities are located on the same floor as residential units, that means anyone in the project will have access to this floor. Some may prefer units close to the facilities for convenient access, but with this selection, the sense of privacy must be sacrificed.

Large-Scale Facilities

Not only the facilities area has to be separated from the living zone, it should be ample to accommodate residents as well. This does not mean the swimming pool or the fitness has to be large in size, but a great number of facilities should be located throughout the project to decentralise residents for an airy atmosphere. In other words, the more facilities, the less crowding of people, and, of course, more privacy when you use them.

Fixed Parking Lot

Parking lot might be far from the living area, but it’s also a part of the overall privacy in a project. A high-privacy project should provide ample parking space and without the use of double parking. Some project has a fixed parking lot for each resident, which is very convenient and private for them; some new-launched projects offer automated parking, which gives an even higher level of that.

We have mentioned several times in this article that low-rise condominiums give a greater sense of privacy, however, don’t take it as a conclusion and delete high-rise condominiums out of your options.

There are many factors that you need to concern: price, facilities, proximity to workplace or school, a concept that matches your personal taste, etc. Nevertheless, a few of these 10 properties should be a part of your considering project if you wish to live in a high-privacy condominium.

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Some of the aforementioned factors may not be under our control, yet location, which is the most important factor, can be selected carefully by finding these 3 attributes.

Clear Traffic and Multimodal Transportation 

Traffic and modes of transportation are crucial factors in terms of living. Some people spend days, or even weeks, to observe the traffic movement in their targeted locations; some even rent an apartment nearby and live there to gain actual experience.

Everyday we travel to work or study some distance from our place, thus knowing the traffic condition or the availability of public transport in that location would help you make a better choice about where to live. Of course, none would choose a place infamous with traffic congestion.

More insights about Bangkok property market, check out DDproperty Property Index Report and DDproperty Property Market Outlook Report 

Surrounded by Amenities 

People who live in a single house or townhome often own personal vehicles for the convenience of reaching important places, still, the distance from your house to public amenities shouldn’t exceed 20 or 30 kilometres.

It’s true that the farther away from the inner city, the less price the house would cost; however, a greater distance also translates to a higher petrol expense. The best way is to choose a location which affects your finance the least, while still suits your lifestyle.

Necessary public amenities such as hospital and police station, or school if you have children, should be within 10 kilometres or less than a 15-minute drive to reach, actually; the father these places are, the riskier your life is in case of unexpected incidents.

Restaurants and department stores may be secondary, yet having some in the vicinity could also determine whether or not you would like that location.

Low Risk of Natural Crisis

This factor is often overlooked and has led many buyers to find disappointment. The two previous factors are often given more weight when people decide where to live, unconcerned about potential natural crises such as flood, storm, or fire, which are beyond anyone’s control. Natural crises don’t often occur, it’s true, yet those who’ve once experienced it definitely wouldn’t overlook this factor.

Recalling the nationwide flood in 2011, where most areas west of Bangkok submerged underwater due to the region’s altitude below sea level (Diagonal Green Area in the city plan refers to low-lying agricultural area where water from all directions gravitates to), not only countless number of houses but temples, factories, and mosques were also heavily damaged, causing citizens difficulties to find a good night’s sleep or even a pillow to rest head-on.

These 3 fundamental factors would help home seekers to find the right home more effectively. Remember to choose a location with favorable transportation, surrounded by amenities, low risk of natural crisis, and suits your lifestyle. Afterward, you can find the right project by reading project reviews here. 

This article is written by Kittikom Pojanee, Content Writer at DDproperty.com. For more information, please contact kittikom@ddproperty.com

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Below are the top ten factors why people spend their money on real estate in Thailand, information from DDproperty Consumer Sentiment Survey collected in 2017’s second half.

1. Location

Despite numerable other factors, Location still tops the list due to its biggest impact. However, luxury doesn’t always translate to higher demand; consumers consider more on whether or not the location is suitable to their lifestyle, and even places distant from the inner city are in high demand nowadays – especially those accompanied by mass transit lines such as BTS Green Line and MRT Blue Line.

2. Infrastructure and available amenities

It’s also vital to gauge the potential of your location: will the price of the property leap or become sterile in the future? Knowing that there are, or will be, mass transit lines or stunning shopping venues near your residence is a sign that your location got some potential.

Rama IX Junction is one of the emerging locations in Bangkok where upscale developments gravitate – hence the closer to MRT Phra Ram 9, the higher potential residential projects are.

3. Security and safety of the location/area

Now real estate developments are decentralising into the suburbs where the costs are lower. A lot of consumers find it more convenient to live some distance from the hectic city, yet still connected to the mass transit line for daily commute. However, the farther the location goes, the sense of safety comes into concern. The more deserted, the more danger and less attractive the property is. Ultimately, everyone’s home needs to feel like home.

4. Price per sqm/sqw

Experienced buyers would prioritise price per sqm/sqw over the full starting price because it could be benchmarked with other projects’. Many enticing starting prices resulted in confined unit space – for example, 24 sqm Studio.

Developers often use this strategy to visually stimulate buyers’ interest. It’s crucially important to look at both figures especially when considering property below 3 million baht.

5. Accessibility to public transport

The mass transit line is not the only mode of public transport buyers consider when looking at a property – taxi, motorcycle taxi, and expressway are also included. Many consumers’ workplaces are in the city and the more convenient they can reach there, the more likely they will choose that location. Public transport doesn’t need to be at their doorsteps but conveniently reachable.

6. Design and construction

Besides reasonable usable area, the design also needs to match buyer’s preference nowadays. The interior and exterior must respond to their identity with a sense of proud and trendy. This goes to the level of material selection and safety of the construction. It’s a long-term asset that every aspect is counted.

7. Size of property/unit

Not only unit size needs to match the population, but the project’s area also needs to contribute a relaxed living. Studio with 24 sqm wouldn’t answer a family of four members, while a penthouse would not be interested in a single resident.

And as the nation is moving towards an aging society, extensive facility area is necessary for the elderly to walk and exercise. As long as the budget is limited, space would come before appearance.

8. Financial eligibility

Affordability could have come to the top factor, but with broader options, consumers find through reading project reviews on websites, it comes in the eighth place. Nowadays buyers can conveniently find the property that matches their preference by filtering the search box for low-end, mid-range, or high-end products.

Try to mortgage calculators by yourself. 

9. Facilities within the property

Clubhouse and unique features and activities are appealing in the eyes of buyers. Swimming and fitness are the expected, while trendy and impressive ones like Co-working space, cinema room, or pet allowance could make a difference. After an exhausting day of works, residents need to relax and unwind with these soothers.

10. Proximity to mass transit

Property near mass transit lines, including those in the suburbs, are now seen overpriced relative to their usable areas. Buyers, especially those with personal vehicles, find it’s not worth paying the price as other modes of transportation can also take them to the workplace. Nevertheless, it’s still in the top ten factors why consumers decide to purchase property in Bangkok.

This information was collected from property buyers in Thailand and can reflect their fundamental needs and concerns in order. If you’re a beginner, you can follow these ten factors when deciding to buy a property, or read more insights about the Bangkok property market, check out DDproperty Property Index Report and DDproperty Property Market Outlook Report.

This article is written by Kittikom Pojanee, Content Writer at DDproperty.com. For more information, please contact kittikom@ddproperty.com 

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When choosing a project to invest, investors usually look at the guaranteed yield rates between different projects and select one with the highest figure, the most profitable one. After they pay the price, the property will be rented for a specific number of years (undertaken by the management team), and at the end of each year, you will receive return according to the promised yield rate.

For example, if a condominium project guarantees 3% yield rate for 3 years and is priced at 1,000,000 baht, this means you will earn 30,000 baht at the end of each year.

After all, there are also other factors you need to consider when deciding to invest in a property. These factors are the following. 

Baan Plai Haad Pattaya with 6-7% guaranteed yield rate in 2-5 years term

Projects with high yield rates are usually located in tourist destinations where rental demand is higher than residential demand, or a central working area where a lot of foreign expats gravitate. With healthy rental demand and low vacancy rate, there’s no reason for a project not to guarantee a high yield rate and property value not to surge in time. 7% guaranteed yield rate for 5 years is pretty common in these locations. 

Best Western Premier Bayphere Pattaya with guaranteed yield rate and rental service team

High yield rate indeed looks attractive but it’s vital to also look at the developer’s reputation. Is their rental service team reliable and able to keep our property in great condition during the rental period? If you have time, go check the developer’s profile, past records, and feedback from their customers, to make sure that this project is trustworthy and worth your money.    

X2 Vibe Pattaya Seaphere with 7% yield rate for 5 years

The guaranteed yield rate must be reasonable and clarify the source of it. Many novices rush to invest in unworthy projects only because the yield rate and location look ideal, yet they forget to read the contract thoroughly to understand what’s the figure actually means and where does it derives from. If a project declares they have a 14% yield rate with 2-year term, that probably means 7% per year (Some investors had actually fallen for this enticing figure). And that 7% must come from the rental income of your property only, not other sources.

Having read through this article, your understanding of the guaranteed yield rate would be surely improved. However, no matter how cautious we approach the investment, there’re still some uncontrollable factors such as economic depression, natural crisis, and political turmoil that could plunge the return and value of our property down. For this reason, besides a high and reliable yield rate, you should also look for a project that’s practical for a long-term investment, one which you can resell in the future with profits.

Make a more confident decision when buying/selling a property or investing, check out DDproperty Property Index and DDproperty Property Market Outlook reports for actionable insights.  

This article is written by Kittikom Pojanee, Content Writer at DDproperty.com. For more information, please contact kittikom@ddproperty.com 

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1. Finance

Don't go for a luxury project if it could lead you to a financial struggle. Instead, select a project with a starting price that matches your savings. One tip to ensure is that your monthly installment shouldn’t exceed 40% of your monthly income. You also need to pay for the contract, and booking fees, besides the down payment.

2. Location

Visualize your ideal condominium to make your decision more precise. If you want a tranquil-environment condominium, a suburban project would suit more for the purpose. On the other hand, if you love the bustling city life with a strong transportation network, condos in the city would be preferable.

But if you want a mix of both worlds, a low-rise project in the city might be the best option as it has a low number of residential units.

3. View

The unit's view is a huge concern, especially when you buy a unit in an under-construction condominium because you are not able to see the real view of the room. What you should do is to study the floor plan and ask the developer about the view you will have. At present, many developers offer a 360-degree view of the project for you to observe at the sales office, or via the developer's website.

4. Size

Make sure the unit you select can accommodate your members with sufficient space. Advertising pictures are usually exaggerated to entice buyers, while the actual unit size might be different. We suggest you go observe the show units which can deliver you the real feelings when living inside. Normally, a 28-square-metre unit is the smallest size to accommodate two people.

5. Price/Sq.m.

Do you know that starting price and average price per square metre are not the same numbers. Some projects have a high average price per square metre but they come up with tiny unit types to have an attractive starting price number to promote. As a result, next time if you want to know whether the project is expensive or not, look at the average price per square metre instead of the starting price.

6. Inspection

When the paper works come to the last step of signing an ownership transfer, hold on a moment and inspect your unit first. It's an important duty as things get more difficult to change after you sign the ownership contract.

Bear in mind that you have to live there for a long period of time, why not have a cautious check that everything is okay. In general, some locals usually hire a person for a property check as the process usually takes a whole day to complete.

In conclusion, while there is no guarantee about which project is the best one, these six concerns could help you filter down your choices and possibly find the right project that matches your true aspiration. Buying a condo is a huge decision, always make sure to have the best one.

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1st Channel: Direct Purchase

Novices might want to start with direct purchase from the property’s owner. Start searching areas in the vicinity whether there are on-sale properties or not, or look through advertisements, printed materials, or even in a website. After you find a desired one, go to inspect the actual site.

The benefits of choosing secondhand properties in the vicinity are that you are familiar and have insightful knowledges about the location; your judgement would be clear whether the property has a potential to be rented or sold afterwards or not. Plus, you will have a chance to know the history of that property before you decide to invest in it.

Pros of this channel: free from commissions as you don’t purchase through property agents; price is openly negotiable.

Cons of this channel: you are responsible to all required documents, which can be troublesome if the property turns out to have some unsolved issues: the property might be legally inherited to several individuals, the existing tenant denies to move out, the seller is not the real property’s owner and the actual owner doesn’t have intention to sell the property, etc.

2nd Channel: Agents

This is another method in finding secondhand properties, suited for those with some experiences in real estate investment. Finding properties through agents will give you broader options in terms of property types and locations. Nowadays, there are a great number of property agents available, servicing both purchasers and renters with convenience – like a great shopping complex where you can find secondhand properties.

As a matter of fact, properties sold by agents need to pass certain qualifications and must be conformed to the owners’ intention to sell or rent. Likewise, there will be less problem about disguised owners. Agents also act as a middleman between you and the owner – doing all the paperwork for you. With this channel, many investors concern about commission that it may be too high. In reality, commissions are not that high and each agent has a different rate. You can ask this number from all agents, and choose the one that gives a satisfying rate.

Don’t turn down the investment merely by presuming the cost is too high. Study all the information thoroughly first, a considered decision in the following time is never too late.

Pros of this channel: convenient in finding secondhand properties; broader options to select in terms of property types and locations; paperwork and transactions are handled by the agent.

Cons of this channel: more difficult to negotiate the price and, hence, lower discounts; charged with commission.

3rd Channel: NPA (Non-Performing Assets)

NPA (Non-Performing Assets), or assets pending to be sold by financial institutions, is another channel where you can find secondhand properties to invest. NPA are massive in options for you to choose and is a channel which costs lower than finding properties from Legal Execute Department. This is the channel where you could potentially find a high-value property with low price, though it takes some time find one. NPA is a channel suitable for experienced investors, not beginners, because there are a massive number of properties to choose in terms of types, locations, and grades. Novices with insufficient knowledges could make a wrong decision and, hence, create losses instead of profits.

Pros of this channel: possibility to find high-value properties with low prices; massive options; special home loan offerings by the bank, in case of bank’s NPL.

Cons of this channel: properties might be excessive and cause investors difficulty to choose; the property might have been more decayed than those sold by agents or owners; beware of banks’ properties which are still dwelled by previous owners – you would have to waste time prosecuting them to get out of the property.

4th Channel: House and Condo Auctions by Legal Execute Department

This is a channel where investors can create generous amount of profits, and has the lowest cost of investment compared to the three previous channels. The price of secondhand properties in auctions hosted by Legal Execute Department could be 30-50% lower than the market price. This channel is suitable for professional investors as the procedures to get properties are quite complicated.

Investors who know how to select a property, auction’s procedures, appropriate price, and when to stop bidding, are suggested to invest in this channel.

Beginners who are interested in this channel, we suggest you to go observe the auctions hosted by Legal Execute Department first. Try to learn from experienced investors at the site about each procedure and, when you are ready, set off your own moves.

Pros of this channel: chance to find high-value properties with low prices.

Cons of this channel: high competition especially in valuable properties; properties might be in disrepair; prosecution is required if the previous owners persist to live in the property – time consuming.

In conclusion, these are 4 channels where you can find secondhand properties for investment. Each has pros and cons and suitable for specific investors regarding the level of experience. Choose a method that is convenient to you, or explore the new one if you want to gain more knowledges and experiences in this field.

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Before we dive into our main topic, we will first explain some basic rights to your front door. Many people, particularly those that have bought a condo unit, may wonder whether their room’s front door is their property or does it belong to the building’s management? In most cases, the building’s management would inform occupants that their front doors and the area outside their rooms are the common property and they cannot decorate or leave objects that may obstruct or produce an ungainly sight in front of their rooms.

Legally, the term “common property” refers to all areas in the building, communal areas and the land that the property is located on, excluding the room units.

Now coming to our front door, we would think that our front door is not a communal property since we are the only ones to use the door to access our room. However, in Thailand’s Condominium Acts state that the floor and the walls that divide the units are considered the rights of every occupant in that building, the usage of such areas have to be in accordance with governing regulations.

Although your front door is not directly considered public property, however the outside of your door and walls that divide your room from other units may be considered central property and the estate’s central management may issue regulations to manage the area.

Many projects with good central management may issue regulations to manage the area outside each unit such as:
- Objects/ decorations may not be placed or done in front or on the door as the unit’s door and area outside is a shared space. Items such as religious/ sacred objects, mirrors etc. are prohibited from being placed on the door.
- Alterations and decorations to the room number are prohibited.
- Changing the door due to deterioration has to be in accordance with the building’s plan.
- Occupants are not allowed to place objects such as shoe rack, shoes, plant pot or large water cooler in front of their units.

There are many prohibitions that occupants may deem minor or even trivial. However, these regulations are issued for the well- being and harmony of everyone living in that building therefore should be obliged by everyone.

The rules issued by central management may vary from property to property, in some projects with strict management, placing a large water cooler in front of the room is prohibited. This is mainly because management does not want the delivery man to enter the building for security reasons, nor does the water containers left in front of the rooms produce an undesirable sight and may also obstruct the walk way. However, in some projects, placing water coolers and/or water containers in front of the rooms are permitted for occupant’s own convenience.

Many people may feel that they should have the right to decorate their front doors as they wish. This may be deemed inappropriate by some central management as they may feel that if occupants are left each to their own it would lead to disorder and ungainly sight for the project.

In conclusion, when you move into a new condominium, whether you have bought the unit or rented, you should observe the building’s regulations and adhere to them. Rules and regulations issued by each building’s central management are there for the safety, well- being and harmony of every individual living in that building.

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Still, one needs to consider whether to live there by rent or buy it for a permanent stay. If this happens to be an undecidable problem for you, the following tips would simplify it to be much clearer.

1. Your Future Work Plan

If you are certain to stay working at your current workplace for a long period of time or moving to a new place with a mass transit that’s still located in its vicinity, then buying would be the right choice. On the other hand, if you are not sure how long would you stay at your current workplace, and your new workplace in the future might not be located close to mass transit, then renting is preferable.

The advantage of buying is that you will have a value-appreciating asset, meaning you can sell it later with a higher price or lease it for monthly income when you no longer live there.

However, the downside is that it could take some time to find a buyer or a tenant, which is not favourable for those who urgently need the money. In contrast, renting costs substantially less money but it comes with the price of having no asset in your hand.

2. Down Payment

The next thing to consider is whether you have a sum of money for down payment or not. In general, down payment requires 10-20% of the condominium’s price; you need to pay this amount to the developer before applying for a mortgage as banks cannot lend you a full-credit mortgage.

If you could afford the down payment easily, then buying would be trouble-free. On the contrary, if your savings are still inadequate, renting would be favourable; and in the meantime of renting, you could put your money in low-risk investments such as bank deposit, money market fund, and government bond, until you have that sum amount of money for the down payment.

3 Daily Cost Savings For A New Home

3. Debts

Assume you prefer to buy instead of rent and ready to apply for a mortgage after paying out the down payment. Firstly, banks would assess your financial performance to see whether you can afford the loan or not. Normally banks would allow debt-to-income ratio between 40-60%, but 30% is recommended for a lower risk.

Typically, the more salary you earn, the higher the loan size you could borrow; however, the more debts you owed, the more chance banks would reject your application. If you have a high level of debt, renting might be preferable, but you also need to make sure that those rents won’t turn out to be another incurring debt.

Low-Price Condominiums 

Whether you have decided to rent or buy the condominium, the most important thing to prepare is your financial ability. With a healthy balance sheet and financial record, you could easily borrow a mortgage from banks. But if you are still struggling to pay debts, you might want to live by rent first, and in the meantime save more money, until you are ready to own a property with confidence.

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The article is written by Nitchanee Chantasart, CFP of Kasikorn Bank, and translated by Sitth Chongprasobtam

The question arises as to when is the best time to buy a condominium? In general, the time to buy a condominium in Thailand can be divided into four major phases. These are VIP Round, Presale, Official Launch, and Project Completion; each one offers a different price, promotions, as well as risks and pros and cons that buyers should acknowledge before making the decision. Let’s have a look at each one.

1. VIP Round

This is the first phase that developers allow a small group of privileged customers, or loyal customers, to reserve the units before everyone else. This phase usually takes place before the project construction starts and it is the time when the project price stays the lowest. Besides the best price, another benefit is that VIP customers will get to select the units first.

They could reserve premium unit types which are limited in number, or units that have the best view or great location on the floor plan; the more quality the unit is, the higher price they can fetch when selling in the following time.

2. Presale

Presale is the second phase after the VIP Round when developers allow general customers to come to reserve the units for the first time. The presale period is normally held for two days. It is the time when developers entice buyers with promotions and discounted prices which are slightly higher than the VIP Rounds. In this phase, there are still plenty of units left, but the exclusive and rare ones might be taken in the VIP Round.

One thing to note in the Presale phase is to put a consideration before emotions; the atmosphere can be high-pressure as a lot of buyers come to compete for the best units, while salespersons would persuade you to sign the contract as early as possible to make a one-day-sold-out phenomenon.

3. Official Launch

After the presale, the developers would channel the project to be widely recognised in the market through advertising, marketing campaigns, and grand opening. In this phase, the project price would have surged by five to fifteen percent, while the less number of units left makes buyer’s options become more limited.

It is also the time when those who own units reserved in the VIP Round or Presale phase come to sell their units through reservation contracts to gain profits. During this phase, the project construction and down payment through installments are likely to get started. In spite of the increase, the price is still possible to continue surging until the project completion.

4. Project Completion

This is the time when the project price reaches the highest, but the paradox is that it’s also the time when you can get a low-priced unit. To demonstrate, there could be some buyers, who reserved units in the previous phases, happen to no longer want the units, didn’t qualify for a mortgage loan or realized that they could not afford the future repayment.

These buyers would rush to sell their units out before the ownership transfer date when they are obliged to pay a huge capital. As a result, they could sell at a lower price for the relief, especially when there are many facing the same situation. In spite of the high price, buying a condominium in this phase comes with benefits of no construction defaults and inspection of the actual units which help you to come up with precise decisions.

In conclusion, if you look to invest, the sooner you reserve, a higher profit you can make due to the best price and best unit. However, if you look to reside, buying after the project completion is a safer choice despite the higher payment. Knowing your true goal and making the right decision at the right time, would help you to get the best property in this competitive market.

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The article is written by Chetapol Manit and translated by Sitth Chongprasobtam 

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Under-Construction Condominium

Major developers normally start to sell the units when the construction does not even start, and investors usually capitalise in this phase on the price leaps, by booking units and resell to others with higher prices before the ownership transfer date. The followings are the pros and cons of buying an under-construction condominium.

1. Cheaper 

The earlier you buy, the lower the price. From the start of the project construction until the completion, the price could leap by 10-30% depending on the demand and economic factors. However, you are not able to see the real site and how the project actually looks, before the construction is fully completed in the next 2-3 years, on most occasions.

2. Change Prior to Notice 

The developers always have a right to change the features prior to our notices. This means by the time you are waiting for the project to complete, the furnishings, brands, and designs could alter. Make sure whether the features are subject to change or not, otherwise, you might run into a non-negotiable argument with developers.

3. Uncertainty

Economic, political, and natural crises are the factors that we can't control. However, it can impact the price of the property due to the low residential demand during the time of unstability. If any of these happen, the project's completion could be delayed, and the unit price would not surge, make it difficult for you to make a decent profit.

Ready-To-Move Condominium

Ready-to-move condos are the fully constructed ones; it can be a new project that begins selling the units after the project's construction is completed, or an under-construction condominium that is finally completed with residential units remained for sells.

1. Real Experience

Buying a ready-to-move condo has no risks of construction delay, uncontrollable factors, and changes of the features. You get to see the entire project on-site, know what views you will have, and experience the real feelings while living there. However, the price is usually higher compared to an under-construction condominium.

2. Ready-To-Move

Whether you plan to live or invest, the unit is ready for you right after the paper works. This means you will get to rent a unit out sooner to make money or have a residence faster for your family members to stay.

However, note that if you could buy a unit during the under-construction phase, there will be more choices of unit types for you to select; the sooner you buy, the broader options you can decide.

To sum up, both under-construction and ready-to-move condos have pros and cons. Buying an under-construction condo comes with a lower price but you have to bear some risks of uncertainty, while ready-to-move condos are more feasible for you to make a precise decision but it comes with higher prices.

Notwithstanding this information, there are more concerns before buying a condo which you need to consider in order to make the best property decision.

Read more insights about Bangkok property market and home tips, check out DDproperty Property Index Report, DDproperty Property Market Outlook Report and Property guides

Look at similar homes

As with anything to do in the property, whether you are a buyer or a seller, you will need to do your homework. You should find out what similar homes are going for in your neighbourhood, which means that you should plow through property listings online and in the newspapers to get a good, general idea.

You should look at both homes which are currently listed and which have already been sold. Although homes which have not yet been sold leave the question hanging, of whether they are worth the price their sellers are asking for, it is always useful to know what the active competition is like.

Use the strategy of square foot pricing

In square foot pricing, you will need to measure the interior area of your property. To do this, you may have to make an estimate for the size of hallways and similar spaces but for rooms, this can be relatively straightforward. For example, if a room is 10 feet by 10 feet, then the area of the room is 100 square feet.

Once you have calculated the total area of your property, you need to take the cost of the property and divide it by the area to get the price per square foot. This is one way in which home buyers compare property prices - by comparing the price per square foot of one property to another, buyers can see for themselves which is the more expensive property.

This strategy is also useful in the event that you are unable to find a similar property to compare with, perhaps because you live in a neighbourhood where the properties differ in architecture, size, and style.

In this case, you should pick a number of homes, preferably about five properties, which are as similar to yours as possible, and add up the area of each home before dividing it by the number of homes to get the average square feet.

Once you have done that, do the same for the prices of the homes you have chosen in order to get the average price. Then take the average price and divide it by the average square feet to get the average price per square foot. To estimate the price of your property, take the average price per square foot and multiply it by the area of your property.

You should note that this is only an estimate, however. If you want to be as accurate as possible, you should get an appraiser to look at your property.

Consider the amenities available

You should factor in the amenities in your neighbourhood. Close proximity to MRT, BTS and BRT stations and bus interchanges is always an advantage, as is the presence of grocery shops, shopping malls and other facilities such as clinics and sports complexes.

It may be difficult to gain an estimate simply from looking at the amenities available, however, the general consensus is that the more convenience you enjoy while staying in your property, the more value it has.

Get a comparative market analysis

If you need reassurance, approach a real estate agent and request for comparative market analysis sometimes referred to as a CMA. CMAs are essentially reports containing data on listings which are active, pending, sold, withdrawn or expired.

Get your property appraised

If you still require additional reassurance, you may hire an appraiser. The cost of hiring an appraiser, however, depends on the size and unique features of your property.

Appraisers will review your property, the market and other properties which they deem comparable to yours, after which, they will provide you with an appraisal, which can be deduced as a professional estimation of your property's market value.

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Be organized

Write down all the items that you intend to move to your new place on a notepad and keep it somewhere you can find it. Start packing these items early so that you save time for other tasks closer to the moving date. For those unwanted items, organize a garage sale and sell them off at discounted prices. This is a good way to make some extra cash.

Get packing supplies

Collect lots of discarded boxes and buy some strong adhesive tape to pack the items so that the contents don't fall out when transporting. Use newspaper or bubble wrap to cover breakable items like glasses, plates, paintings, and sculptures before placing them in the box.

Avoid confusion

Each family member should have their own box to place their personal belongings inside. Examples of items they can put inside include bed sheets, towels, toys, and stationery. Ask them to label the boxes clearly so that they can retrieve it easily.

Choose your movers wisely

Make sure you get good movers who are professional and responsible because they will be handling your most prized possessions. Do your own research. Check the yellow pages for moving companies. Call them up and set a time and day for them to come to your home for an on-sight inspection.

This is to help them quote a price. Don't just hire the first mover who has given you a quote. Call a few more companies so that you can compare prices and services. In addition, ask family and friends for recommendations of good movers.

A good moving company will take care of your personal belongings and will help pack and unpack electrical items such as computers, televisions and light fixtures.

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If you are handling negotiations on your own, you must know your material. Once you have found out how much homes usually go for in the neighbourhood, use that as a gauge and do not exceed it. If you have a definite budget, stick to it.

Be clear about what your needs are and after you have viewed a good number of homes, make a list of those which meet your needs best. The more homes you have that match your needs, the more bargaining power you have when it comes to negotiating price.

Consider the amenities available to you if you decide to purchase this property. Is well serviced by the public transport system or do you have to take two or three buses to reach your workplace? Is there a MRT, BTS, BRT, Express Way nearby? Can you find food easily around the estate? If the amenities are not particularly appealing, you can use this as a bargaining tool to lower the price the home seller is asking for during negotiations.

Try not to be turned off by homes that do not have a high number of home viewings. This does not necessarily mean that the property is not popular among prospective buyers. It could be due to the possibility that the price the seller is asking for that particular home exceeds the budget of a certain group of buyers.

You should also take into consideration the likelihood that a home which is not viewed often might not have many offers for purchase. In that case, the seller may be more willing to negotiate terms.

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If necessary, engage the services of a real estate agent. Make sure that you select an agent who understands your purchasing needs and is willing to accompany you to view eligible homes.

Before you go out to view a home, make sure you bring along a digital camera and spare batteries. When you start taking pictures of the homes you visit, be sure to begin each series of photographs with a shot of the front door, where the housing unit number is clearly visible. This will help you later to distinguish between the various sets of photographs you have taken.

If it is a landed residential property that you are viewing, take a picture of the exterior of the house.

Take notes as you visit each home. Note down any unusual details about the places you are viewing, especially features that you like or dislike. Be as detailed as possible.

Check that the location of each home you visit is somewhat ideal. There should be a good range of shopping and leisure amenities nearby, as well as a clinic and a school if you have children or are planning to start a family.

The place should also be well serviced by public transport services, be it buses, Expressway, BTS or MRT.

When visiting each home, pay attention to its surroundings. For example, do you like the people living next door? You should ensure that you are comfortable living in that environment.

After leaving each location, rate the home on a scale of one to 10, with 10 being the highest score.

Once you have decided on a few options, review them again. You might spot some features which you didn't on your first visit that could determine your decision.

While it is acceptable to take your time to review your options, do not hesitate too long, especially if you have already found a home that you like. Chances are, you are not the only one who thinks it's perfect and its seller may have already received a few offers for it.

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