Residential property market in a state of flux

For the rest of the current quarter, launches of residential projects are likely to remain subdued because of low sentiment and logistics disruptions. However, unlike the situation following the political turmoil in May last year, when buyers jumped straight into the market, many will probably be more cautious until the disaster has ended and an analysis of the flood is undertaken, Colliers managing director Patima Jeerapaet said.
Home-buyers are more likely to prefer high-rise condominiums to landed property because of the impact of the floods. People will also evaluate which areas are less prone to flooding.
“Even if your high-rise home is protected, you still don’t want the area inundated with flood water for weeks,” Patima pointed out. However long the delay in buyers returning to the market, the pent-up demand is likely to increase and eventually a significant number of launches will take place, he said.
Tony Picon, associate director at Colliers, believes condominiums will be even more popular than they were before the floods.
At the high-income end of the market, the same reasoning could add to the trend for purchasing second homes in resorts such as Hua Hin and Pattaya.
“Many have fled to these resorts, especially people who don’t need to work in Bangkok such as children and the elderly,” said Monchai Orawongpaisan, senior manager for residential project sales and marketing.
Again family pressure could result in more property being purchased not only as a weekend retreat but also as a back-up residence. “We could see significant activity in the market during the first half of next year based on this trend in Hua Hin, Pattaya and other nearby resorts,” he added.
While high-rises will prove more popular, landed property will remain a strong presence in Bangkok. There are dire warnings of global warming leading to regular flooding problems, including flash floods as a result of heavy downpours. A future trend could be simply houses on stilts, reflecting a common mode of living in the past.
“Many countries have been affected by floods, and stilt-based housing is proving more popular with innovative designs coming to the fore which exclude the use of hardwood piling,” Picon said.
The existence of such properties would also allow the city to drain water quickly. “It is basically a way of accepting Mother Nature and living with the situation rather than trying to confront it,” he added.
Meanwhile, according to a survey by the Real Estate Information Centre, the number of residential projects facing flooding in Greater Bangkok and Ayutthaya province increased from 100,000 units last week to 140,000-150,000 units from 1,000 residential projects.