NEWS & EVENTS
Defining Trends To Look Out For in Thailand
The end of 2021 is about to arrive at the end of the year, and we will be celebrating Christmas sooner than we all might have anticipated. However, the end of the year does bring in lots of factors to consider. While some will be considering their next holiday plan, starting a Christmas shopping list, or looking for new opportunities for passive income.
In any business or investment during the last quarter, everything seems to be in a rush. Not in the industry, but even in sports, the last quarter or last 10 minutes, all the plans are thrown out the window. It might be because the end is near, there is not much time left, and you want to be done with it quickly. This is very accurate; you want to enjoy your holiday with family or friends.
But the end of the year can also be a time to reflect and to manage your plan. A plan is there to be your framework, but a framework is there for you to adjust according to new reports. Therefore, you need to follow some recent trends and change your plan with updated trends in any investment. This article will be looking at a few trends in the Thailand Real Estate market to adjust your investment according to the directions.
How to identify trends?
There are many actions to identify trends in the market and how the locals are moving forward. However, some trends are harder to calculate and research for in the fire. For example, the pandemic is an uncontrollable trend to predict. An uncontrollable situation like the ongoing pandemic can cause lots of changes to people’s behavior, lifestyle, priorities, and purchasing powers. The effects of the pandemic are like a chain cycle. Everything from the top to the button changes. It’s up to the businesses and investors to change the plan.
Like real estate, when consumer behavior and lifestyle change, you got to change with the consumer. From a property developer to an investor, a buyer will see changes to the market you are willing to invest in for a future return of investments.
Furthermore, As To How The World Is Changing, Thailand’s Real Estate Market Is Changing With The Trends. The Changes For Directions Occur With Consumer Behaviors And Purchasing Power. Let’s See Below What And Some Trends To Look Out For As An Investor In Real Estate In Thailand For Return Of Investments In The Future.
National, Economical, and Social Changes
The headline of this particular section seems a handful, but it’s one bundle together. It is like a set menu, where if one team is on a downfall, it causes a chain of action. To find a good starting point to invest is to look a the big picture of the country where you are putting your money. For instance, the national GDP (gross domestic product) in Thailand has been lower than in previous years. Just not for Thailand, but as a while, Thailand’s GDP has been slowly trending lower. So the downward trend of Thailand’s GDP does not suggest staying out of the market but looking at why the GDP keeps lowering.
According to Bangkokpost.com, the repeated lower GDP is caused by population growth. Thailand is turning into an aging population. Birth rates are low, and people are well not in a rush to get married soon. Low birth rates turn into a smaller family size, turns into a smaller home. Also, with an aging population, they are fewer new resources, new economic growth.
An aging population does not mean the country’s GDP will keep lowering. Instead, an aging population comes with new ideas and newer generations. In addition, some social changes go with social lifestyles. For example, the pandemic has changed consumer lifestyles forever.
Lifestyle and Wealth
Secondly, changes in lifestyle effects trends in the property. With the ongoing pandemic, people’s income was affected, and purchasing power decreased. For a younger generation, lifestyle and experience are subsequent parallel with wealth. Gen Z would prefer to have a memorable experience than to accumulate wealth. It starts with lifestyle changes, with significant lifestyle changes when it comes to property. Historically, Asian has soft emotions toward the property. Asians see property as an asset, but that is for the older generation. With income and the pandemic affecting financially, a post on bangkokpost.com recorded that Gen Z would prefer to rent than buy property.
As the concept of work from home, Gen Z would prefer to move around like a digital nomad and rent outhouses. About rent than buy will be further on the next section. But with Gen Z’s focus wealth on experience, real estate seems to be an afterthought. Thailand is recording a slow birth rate, which leads to smaller families. Smaller families can lead to more rent than purchasing a property.
Rent more than Buy Property
As an investor looking for passive income from real estate, hearing the locals prefer to rent than purchase a property is like knowing Christmas is coming early this year. Appenrally, according to Bangkokpost.com, Thai’s desire to rent property more than to buy a property. A few reasons have to lead to rent more than purchase conclusion.
First, because of the growing debts rate. During the pandemic, younger Thais are more in debt than the previous generation. Therefore, purchasing a house as an asset will see Thais in debt for an extended period. On the other hand, renting out a property allows you to move around easier without much commitment in one single place.
As investors hearing that Thais would prefer to rent than to buy, it is good news. In Thailand, new real estate projects emphasize minimum designs but maximum use of each unit. Each unit or home is accommodating to work and to live in the house. For Thais,, this is a perfect opportunity to rent out a property before the economy for the country can rebound. The country’s rebound still seems to be far away, but as an investor looking to purchase property in Thailand, we can forecast that rental yields will start to come at the beginning of the year 2022