Foreign demand supporting Thai condo market, Plus Property says
The condominium market has started to recover thanks to foreign demand, according to Plus Property.
Meanwhile, developers have shifted their tactics towards roadshows abroad after realising the exponential growth in foreign demand – from both expatriates and those living abroad – over the past five years.
Low prices, good rates of return when compared with neighbouring countries, the Kingdom’s central location within the Asean region and quality after-sale services make it easy for people to decide to buy here.
Anukul Ratpitaksanti, managing director of Plus Property, said the signs of recovery of the condominium market had become more visible since the latter half of 2016, when the number of new projects entering the market increased by 32 per cent compared with the same period of 2015.
Amid the economic uncertainties and the high level of household debt during the period, developers have shifted more towards the mid- and high-income segments.
Developers have also expanded into foreign markets to attract purchases by foreigners and foreign investors, both of which currently pay significant interest to properties in Thailand because of its geographical advantages.
Plus Property’s data for the years 2012 to 2017 indicate that demand by foreign buyers who live in Thailand expanded by some 700 per cent.
Most of this demand – 72 per cent – was for condominium units for residential use, whereas 28 per cent of purchases were for the purpose of investment. Some 21 per cent of units purchased by the latter group were leased out and 7 per cent were resold.
Demand within Bangkok expanded the most, constituting 58 per cent of units sold. Seaside units in Phuket, Chon Buri and Hua Hin constituted the second-highest demand growth (16 per cent, 13 per cent and 6 per cent respectively).
Demand in the tourism cities of Chiang Mai and Pattaya grew by 2 per cent. The three most prominent groups of purchasers were Asians (58 per cent), Europeans (29 per cent) and North Americans (7 per cent).
The most popular price range was between Bt5 million and Bt7 million (31 per cent). This was followed by the price ranges of Bt3 million to Bt5 million and Bt7 million to Bt10 million, each of which constituted 21 per cent of sales.
