Thailand’s real estate market did not fully recover in 2022, primarily because to the country’s economic downturn, the war in Russia and Ukraine, and increasing inflation and interest rates. Despite the fact that the anticipated recovery did not occur, the overall prognosis raises expectations for 2023.
Consumer spending confidence has returned, as seen by the increased CCI (Consumer Confidence Index), which has been rising for six years in a row and is now at its best level in 20 years. The Bank of Thailand’s ongoing lending relaxation (Loan-to-Value: LTV), which is about to come to an end, is another factor that has benefited the real estate sector. It has been successful in enticing clients with genuine want to buy real estate units.
Leading real estate website DDproperty reports that when it comes to choosing a home, purchasers give location the most consideration. In the most recent Consumer Sentiment Study conducted in Thailand by DDproperty, 53% of respondents stated that they look for a project with access to public transit, and 50% stated that location is the most important consideration when deciding whether or not to buy. According to the survey, which looked at housing preferences from January to November 2022, nearby provinces outperformed popular tourist spots. For those looking to purchase a home, Bangkok remains at the top of the list, followed by Nonthaburi, Samui Prakan, Pathum Thani, and Chon Buri. Famous tourist destinations including Phuket (ranked eighth), Prachuab Khiri Khan (ranked seventh), and Chiang Mai (ranked sixth) failed to crack the top 5.
Again, the tendency is strongly influenced by geography and accessibility. Due to the planned and realized train links between Bangkok and Greater Bangkok, the neighboring provinces are now more appealing to home purchasers (Nonthaburi and Pathum Thani). It is even more clear that transportation is important for a certain location in Bangkok, which is why Suan Luang district on the east side of the city is now the most popular choice. Those wishing to commute from Suan Luang into the city and to other locations will find the Yellow line (Lad Phrao-Samrong), which is almost finished and scheduled to open in mid-2023, to be a great help. The Eastern railway and the Airport Rail Link are already present in the area.
It is obvious that Bangkok’s inner city is no longer one of the best places to visit. Although there are houses for sale in the CBD area, the prices are not for the mass market and most new home buyers will not be able to afford them.
Bangchak in the Bangna sub-district, Khlong Tan Nuea in Wattana district, Lad Phrao, Huay Kwang, and Jompol in Chatuchak district, Hua Mark in Bang Kapi, and Din Daeng and Samsen Noi in Phya Thai district are the top areas where home buyers are most in demand, followed by Suan Luang. Among these top areas, Bangchak, which is conveniently reached by the BTS Skytrain, is the most sought-after place for rental property, while Khong Tan Nuea attracts the greatest attention in the condominium category. The region has also developed into a multiracial community, and although while land prices have been steadily rising, some rental condos and apartments are still within reach of most people’s budgets.
The most sought-after property in 2022, according to more than half of potential purchasers (55%), was the condominium, which was followed by single-detached homes (28%) and townhouses (17%). While prospective home buyers are only ready to fork over 10 million baht for their future single detached mansions, 42% of potential condo buyers desire an unit that costs between 1-3 million baht. This demonstrates that 42% of first-time homebuyers seek an affordable entry price for their first homes, while 36% of those interested in purchasing a home prefer a luxury option and 20% desire a comparably more reasonable property in the region of 3 to 5 million baht per unit. Townhouses are priced similarly to condominiums, with 48% of prospective buyers ready to pay between one and three million baht for each unit. Meanwhile, prospective tenants are seeking accommodations with monthly rents between 10,000 and 20,000 baht.