One Bangkok developer is predicting that the property market in the Thai capital will experience stable growth during the next decade. The Nation noted that Pruksa Real Estate president and chief executive officer Thongma Vijitpongpun believes there will three to seven percent growth in the property market on an annual basis over the next 10 years once the government begins investing in infrastructure projects.
Thongma told the newspaper that the Greater Bangkok property market is set to benefit from the planned construction of ten new mass-transit routes that will link the capital with its growing suburbs. He added these projects will open up new areas for residential development, as demand shifts from Bangkok’s central business district to the suburbs since it will be easier for commuters to get to and from the city center
“We forecast that demand will grow by an average of seven percent a year in Bangkok and the suburbs from this year through 2025, and during the same period the demand for homes in the provinces will grow by three to five percent,” Thongma stated. “Our estimate is based on our experience after two mass-transit routes – the BTS Skytrain from Mor Chit to Sukhumvit 107 and Mor Chit to Bang Wa and the MRT subway from Hua Lamphong to Bang Sue – were constructed.”
According to The Nation, the new demand will come from both the lower-income and upper-income markets. A recent study by Pruksa revealed that there is a potential market of seven million people in Greater Bangkok currently renting or living with their families who would like to own their own homes but only a small number of this group qualify for a mortgage. Thongma concluded that this was an issue that will need to be addressed. Pruska’s survey noted that If the government relaxed lending rules demand for homes costing no more than THB600,000 would double.
