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Expectancy of Property Market Growth in Thailand Up to 10%

Expectancy of Property Market Growth in Thailand Up to 10%

Expectancy of Property Market Growth in Thailand Up to 10%

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In the recent years, Thailand’s economy has experienced some significant ups and downs, but the property market is expected to pick up significantly this year. It is driven by growing low-rise sector of the residential market.

The president of Thailand’s Housing Business Association, KhunAtipBijanonda said the growth of the Thai property market this year will grow by 5 – 10% boosted by transactions in single-house and townhouse segments.

There are a total of 146,870 units of single houses, townhouses and duplexes remaining for sale worth 540 billion baht while 98,130 condo units worth 275 billion baht, according to the Real Estate Information Center (REIC). Bangkok, Chon Buri and Nonthaburi are recorded with the most low-rise and condo units remaining for sale.

The president of the Thai Condominium Association, PrasertTaedullayasatit, said single houses and townhouses sales had picked up since the third quarter of last year, where townhouses priced at 2 to 3 million baht are in strong demand.

In the same location where mass transit stations are, the townhouses priced higher than 10 million baht showed a significant growth competing with the condos in the same location due to lower prices.

“Developers should prepare for changes in the real estate landscape”, Mr. Prasert said. “As happened last year, big developers are expected to continue dominating the residential market, putting smaller developers in trouble”.

The senior director of the financial institutions strategy department at the Bank of Thailand, Don Nakornthab, said the government’s spending on infrastructure in 2016 may be minimal but it could lead private investment and help the property sector, as most megaprojects will develop mass transit and transport networks.

As Khun Don Nakornthab said, “Developers should be more cautious in property development as the economy remains slow, with high household debt and low prices of agricultural products having an impact on consumers’ purchasing power”.

The Thai economy is expected by many economist to improve from last year due to government’s implementation of economic stimulus policies and other measures which were introduced by the central bank and the Public Private Partnership Committee.

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