Bangkok Sales Property: Market Shifts & What to Know

Bangkok real estate market is on the rise, with the demand for the median condo price reaching 5.7 million Thai Baht in 2023, up by 5.57% from 2022. The increase, highlighted by a 45.8% rise in development unit condo sales, reflects the Bangkok sharp recovery and buyer confidence in purchasing condos. 

Let’s dig deep into finding Bangkok real estate market performances in the past five years. From sales transaction, to the demand side and lastly supply market in Bangkok properties. 

Sales Transaction in Bangkok Property Market 

Sales transition from 2022 to 2023 has seen notable changes in median prices across different nationalities. 

International Buyers:

• American and French nationals, who led in median prices in 2022 at 10.73M and 11.15M Thai Baht respectively, saw adjustments in 2023, with median prices dropping to 7.98M for Americans and 7.30M for French buyers.
• When we calculate the price per square meter of sales transactions. American buyers significantly increased from 98.78K in 2022 to 139.82K in 2023, suggesting a move towards premium properties.

This suggests a diversification in the types of properties being purchased, possibly indicating a broader range of investment strategies or a change in the economic landscape influencing buying capacities.

Condominium Market:

• Dominates international transactions, with the majority of American, French, and other nationals focusing on this sector.
  
• A shift in Thai buyers' preferences from a strong condo focus in 2022 (91.50%) to a more diverse property portfolio in 2023.

The shifting median sales prices, from 4.24M THB in Q1 2022 to an impressive 9.89M THB in Q3 2023, paint a picture of a market in transformation, increasingly catering to a diverse and upscale buyer base. This trend is further supported by the growing demand for larger units, highlighting a market that's adapting to accommodate the varied needs and aspirations of both local and international buyers.

Property Types and Investment Trends:

Resale properties remained a popular choice among most nationalities across both years, indicating a robust secondary market in Bangkok's real estate. 

However, the notable increase in off-plan purchases, especially among Chinese buyers (from 0% in 2022 to 40% in 2023), points towards growing investor confidence in the market's future. 

The bedroom size data reveals a consistent demand for 1 and 2-bedroom units, aligning with the global trend towards smaller, more manageable living spaces in urban settings.

Looking into Price Per Square Meter Calculation of Transactions in Bangkok 

The 2022 Prelude:

• Myanmar's Sales Transaction: With an impressive valuation of 135K Thai Baht per square meter, Myanmar investors set the high watermark in 2022, showcasing the strategic allure of Bangkok's prime locales.
• American and Indian Interests: Following closely, American and Indian buyers underscored their preference for premium urban spaces, highlighting the city's capacity to cater to luxury and convenience.
• Thai and French Markets: Offering a contrast, the Thai and French investors found value across a broader spectrum, pointing to the market's diverse appeal and accessibility.

The 2023 Transformation: 

• The US Surge: 2023 saw a dramatic leap with the United States buyers pushing the price to 139.82K Thai Baht per square meter, a clear testament to the growing quest for luxury and exclusivity within Bangkok's confines.
• French and Chinese Momentum: Accompanying this surge, the French and Chinese markets, absorbing Myanmar's previous high-value segment, marked significant growth, signaling a widening circle of international interest.
• Thai Market Adjustment: A slight dip in the Thai market valuations suggests a strategic recalibration, potentially indicating a shift towards more value-oriented domestic buying patterns.

The Comparative Insight: This side-by-side comparison tells a story of change, ambition, and shifting priorities. The rise in valuation for the United States and France highlights an international allure, drawing buyers to Bangkok's unique blend of modern properties. 

The consistency in China's market, absorbing the high-end Myanmar investments, underscores a sustained interest in Bangkok's growth potential and lower property tax..

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Sales Status of Property Purchase and Sales in Bangkok

The data illustrates a strong and consistent preference for condos across all property statuses, with a notable increase in sales for condo units in both developer (DEV) units and resale categories by 2023. 

Conversely, the sales in house units within the DEV category has seen a decline, dropping to 18.75% by 2023 Q3 from a higher percentage in earlier years.

The sales data for 2022 and 2023 brings additional layers of insight:

• Off-plan Units: The slight decrease in the average sales price from 4.68M in 2022 to 4.52M in 2023, marking a -3.00% change, suggests a cautious approach towards newly launched projects, possibly influenced by market uncertainties or a surplus in new developments.
• Resale Units: The -7.00% change in resale unit prices, from 6.45M in 2022 to 5.95M in 2023, could indicate a cooling in the secondary market, potentially due to buyers prioritizing newer developments or negotiating better deals in a competitive market.
• DEV Units: The striking 45.80% increase in the average sales price for DEV units, from 5M in 2022 to 7.29M in 2023, stands out as a significant market movement. This leap could be attributed to a surge in demand for newly developed properties, possibly driven by emerging trends, such as a preference for sustainable and tech-integrated living spaces, or a response to strategic location developments becoming available.

Bangkok Real Estate Past 5 Years Demand & Interest

The condo market in Bangkok saw remarkable fluctuations, with particular interest in the 1M-3M THB price range. 

Rise of Affordable Living Spaces: Starting from a modest base in 2018, the demand for condos in the 1M-3M THB price range surged to an impressive 17.4% by 2023.

Luxury Condo Segment: In contrast, the luxury condo market (priced at 10M THB and above) danced to a different tune, with demand fluctuating yet maintaining a strong foothold. This segment's resilience reflects a stable appetite among a niche demographic for high-end living spaces, offering exclusivity and premium amenities.

• Dominance of High-End Houses: The demand for houses priced at 10M THB and above has consistently led the market, peaking at 58.9% in 2019 and maintaining a robust presence with 55.28% in 2023. ​
• Fluctuations in Affordable Housing: The journey for more budget-friendly options in the house market has seen its ups and downs, particularly in the 1M-3M THB range. A notable dip in 2020, followed by a partial recovery, hints at the nuanced shifts in homebuyer behavior, particularly the growing demand for larger homes with gardens or extra rooms, likely spurred by the lifestyle changes brought about by COVID-19.

Real Estate Valuation in Bangkok for Demand & Interest

By 2023, the median price capturing the majority of buyer interest has tapered to 5 million THB. This 14.29% decline over the span of six years is more than a mere adjustment; it's a reflection of a market in transition. 

The year-on-year stability observed from 2018 to 2020 at around 6 million THB, followed by a consecutive dip to 5 million THB by 2023, underscores a recalibration of buyer expectations and investment appetites. The sequential decreases of 8.33% and 9.09% in the latter years spotlight a market responding to broader economic currents and a possible saturation within certain condo price segments.

Contrastingly, the housing sector stood as a bastion of stability, with the median price steadfast at 10 million THB through 2022. This unwavering figure speaks volumes of a consistent demand for houses, reflecting values placed on houses in Bangkok. 

However, the narrative took an unexpected turn in 2023, with a sharp 20% decline to 8 million THB. This abrupt shift suggests a significant reevaluation of what buyers are seeking in a home, possibly spurred by macroeconomic factors, changing lifestyle preferences, or a new emphasis on value-for-money in the wake of global uncertainties.

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Top Nation Interest and Top Buyers in Bangkok Real Estate 

Bangkok real estate scene is a global stage, showcasing buyers' interest that spans continents. Over recent years, this vibrant market has seen varying levels of engagement from both local and international buyers, each group bringing its unique preferences and investment strategies.

Thai Buyers: The Backbone of the Market

• Thai nationals have been the cornerstone of demand in Bangkok's real estate, dominating inquiries with a peak at 92.47% in Q4 2022. Although there's been a noticeable shift to 77.69% by Q4 2023, the strong local participation, especially in the condominium sector, remains evident, underscoring a robust yet diversifying domestic market.
  

American Buyers: A Rising Force

• The interest from American buyers has seen remarkable fluctuations, culminating in a significant spike to 13.22% by Q4 2023. This uptick in attention, particularly towards high-end condos, is mirrored in the sales data, with median prices reaching a zenith of 9.89M THB in Q3 2023, indicating a growing American footprint in Bangkok's premium real estate offerings.

Singaporean and Hong Kong Buyers: The Steady Investors

• Buyers from Singapore and Hong Kong have maintained a consistent presence in the market, with their preferences subtly leaning towards high-value investments.

British Buyers: The Emerging Enthusiasts

• The UK's engagement with Bangkok's real estate has been on an upward trajectory, peaking at 4.96% in Q4 2023. This burgeoning British interest is particularly evident in the sales of larger units, with a noticeable uptick in 2 and 3-bedroom condos, showcasing a preference for more spacious living accommodations.

The data also highlights a burgeoning interest in larger units, with 2 and 3-bedroom condos gaining traction, especially among international buyers.

Property Supply Trends in Bangkok

Bangkok's property supply trends have offered a compelling narrative of change and adaptation, with key areas emerging as focal points for both developers and investors.

• 2022 Highlights: Asoke and Rama 9 led the charge in unit counts, capturing 29.55% and 26.14% of the market respectively. Their prominence underscored the magnetic appeal of central locations, where the pulse of urban life meets the promise of lucrative investments. With Thonglor, Nana, and Phrom Pong followed suit.
• 2023's Transformative Trends: The narrative shifted significantly towards transaction values, with Khlong Tan Nuea taking the lead by accounting for 44.74% of the market's total value. It includes new leisure attractions such as Emsphere Mall changing the landscape of Bangkok real estate market. A complete guide on how Emsphere Mall is changing Bangkok real estate market in 2024 and beyond is by following the link here. 

The alignment between supply trends and sales data, especially in burgeoning areas like Khlong Tan Nuea, indicates a market in sync with the evolving preferences of both buyers and developers.

Overlaying this sales data with the broader supply trends from 2018 to 2023 offers additional layers of insight. The steady supply in sought-after areas like Khlong Tan Nuea, coupled with its surge as a top sales location in 2023, suggests a market that's not just growing, but also evolving, with buyers and developers aligning more closely than ever before.

Your Opportunity in Bangkok Real Estate

As Bangkok's property landscape continues to evolve, the opportunity for discerning investors and homebuyers has never been more pronounced. The shift towards quality and strategic locations underscores a market ripe with potential for those ready to engage with it thoughtfully.

Whether you're drawn to the vibrant streets of Asoke, the burgeoning potential of Khlong Tan Nuea, or the strategic locales of Khlong Toei Nuea and Phra Khanong, now is the time to explore what Bangkok has to offer.

You are ready to make an informed investment or a new home with strategic areas on the rise and a clear trend towards quality. Your next is connect with Fazwaz

Reach out to Fazwaz Real Estate for expert guidance and insights into Bangkok's property market. Let us help you navigate this evolving landscape and find the opportunity that's right for you.

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