Weekly Thailand Property News June 19 -23 2023

Myanmar Buyers Lead in Thai Condominium Purchases; Chonburi and Bangkok Dominate Foreigner Transfers in Q1 2023

The opening quarter of 2023 witnessed an intriguing trend in Thailand's real estate market, with buyers from Myanmar dominating foreign condominium acquisitions, each unit averaging a value of 6.5 million baht, as reported by the Real Estate Information Centre. Indian nationals, on the other hand, opted for size over quantity, buying the largest condominium units, averaging 77.7 square meters. Chinese investors marked their presence through the sheer volume of transfers. 

The lion's share of these transactions was reported in Chonburi, a location witnessing the highest volume of foreign ownership transfers over the past half-decade. Chonburi, along with Bangkok, represented a colossal 84.8% of the total transaction value, illustrating their formidable appeal among foreign investors. 

Interestingly, despite the allure of high-end condominiums, most foreign buyers exhibited a preference for units priced below 3 million baht. Units priced between 7.51 - 10 million baht recorded the least interest. However, condominiums exceeding a price tag of 10 million baht accounted for the highest overall transfer value, contributing a substantial 32% to the total.

Reference: https://www.bangkokbiznews.com/property/1074510

Foreign Condominium Ownership Transfers in Thailand Surge in Q1 2023, Led by China, Russia, and the USA

The opening quarter of 2023 marked a significant surge in condominium ownership transfers in Thailand, with foreign nationals from China, Russia, and the United States leading the charge. The Real Estate Information Centre reports a striking year-on-year increase of 67%, taking the total value of these transfers to a notable 17 billion baht. This period witnessed a 79.2% growth in foreign ownership transfers, bringing the tally to 3,775 units, and extending a trend visible since Q2 of 2022. Furthermore, the total area of condominiums changing hands escalated by 73.8% from the previous year, reaching 168,664 square meters. With 46.3% of total transfers, Chinese nationals held the most substantial share, followed by Russia, the United States, the United Kingdom, and Germany. Notably, nearly half of the total transfer value can be attributed to Chinese investors, who represented a commanding 47.8% share.

Reference: https://www.bangkokbiznews.com/property/1074503

Population Decline Poses Challenges for Bangkok's Real Estate Market

The future sustainability of Bangkok's residential market and its surrounding areas encounters hurdles as a projected population decline looms. Younger age groups are expected to witness a significant decrease of approximately 6-7% in the population, giving rise to concerns about the market's long-term growth prospects. Bangkok presently maintains a stable population of around 5.5 million, with occasional fluctuations but limited potential for expansion. In contrast, neighboring provinces experience a modest annual growth rate of 1.5%, contributing to the overall population of the metropolitan region. To ensure the housing market's resilience, sustained economic opportunities must attract individuals from other provinces. Accessible and affordable housing options in the outskirts of Bangkok, coupled with efficient transportation connectivity to the central business district, play crucial roles in addressing housing demands. The consequences of population decline are expected to manifest in approximately 20 years, emphasizing the need for unwavering efforts to sustain continued economic growth and appeal to a diverse population.

Reference: https://www.bangkokbiznews.com/property/1073887

Yellow Line Revolutionizes Bangkok's Eastern Zone, Unleashing Development Potential

The inauguration of the MRT Yellow Line in Bangkok's eastern zone heralds a momentous era of transformation and abundant opportunities. Anticipating a staggering daily ridership of around 200,000, this line interconnects key locales such as Lat Phrao Road, Bang Kapi Intersection, Lam Salee, and Srinakarin, offering a respite from crippling traffic congestion. Each station along the line unfolds vast economic prospects, giving rise to a slew of luxurious condominiums, townhomes, and upscale office spaces. Notable destinations include the bustling Ratchada-Ladprao intersection, the promising Chok Chai 4 Station, and the vibrant Lat Phrao 83 Station. Renowned industry players like the Sirivadhanabhakdi Group and the Pruksa Group actively drive these developments. Moreover, the advent of mixed-use complexes, skywalks, and the rejuvenation of shopping centers amplifies the impact of the Yellow Line. With an auspicious future on the horizon, Bangkok's eastern zone stands poised for remarkable progress and prosperity.

Reference: https://www.thansettakij.com/real-estate/568746

Real Estate Market Faces Slowdown as Interest Rates Rise, Shifting Focus to High-End and Foreign Buyers

The Real Estate Information Center (REIC) has predicted a deceleration in the Thai real estate market during the first half of the year, citing various risk factors such as geopolitical tensions, inflation, and escalating energy costs. The surge in interest rates has significantly impacted the lower-priced segment, causing banks to tighten credit availability and remove Loan-to-Value (LTV) measures. Consequently, market players are redirecting their attention toward high-end projects with foreign buyers. The launch of new projects is projected to decrease, prompting industry experts to highlight the importance of customer-developer collaboration in alleviating financial burdens. The adverse effects of interest rate hikes on consumer sentiment and purchasing decisions have prompted calls for supportive measures from the government. Developers are adjusting their strategies to target high-end and foreign buyers, while industry leaders emphasize the need for thorough consideration of loan applicants' financial capacities in light of rising interest rates.

Reference: https://www.reic.or.th/News/RealEstate/467544

Search Now