Even with the property market facing slow sales and transfers, it remains one of the best investments in Thailand according to CBRE Thailand. The property consultancy reported that the office market and luxury residential market in particular will continue to be good investments in 2016 as demand for these remains strong with supply still being limited.
Aliwassa Pathnadabutr, CBRE’s managing director, explained that property prices are likely to keep rising with land plots in prime locations like the central business district (CBD) seeing the biggest increase. Despite the sluggishness of the Thai economy, this is one of the few areas to not be affected.
“Land prices in the CBD will once again set a new record this year,” she said. “We may see THB2 million per sq. wah within the first half of this year after a previous THB1.9 million record was set near the Chit Lom skytrain station in 2015, preceded by a THB1.7 million record near the Nana skytrain station in 2014.”
Condominium development continues to fuel the skyrocketing land prices. CBRE points out that the prices of new condominiums in prime downtown locations could rise to more than THB300,000 per sqm this year. This means high-end condos will remain a good investment during the slowdown as the struggling stock market forces investors to rethink their plans.
Aliwassa also noted that commercial property, while not appealing to some investors, is another good area for investment. However, as the current global economic outlook continues to be questionable, high land prices could deter some from investing in office developments.
“Strong growth in the e-commerce sector will create new trends in the office sector, like use of a column-free floor plate for flexibility [in open-plan offices],” Aliwassa added. “It also affects the retail sector, which needs to go to online shopping platforms and boost demand in logistics and warehousing.”
