Long-term optimism despite short-term concerns among home-buyers, poll finds

The survey looks at sentiments among Bangkokians, primarily first-time home buyers and upgraders, about the first half of 2017.
A majority of those surveyed (49 per cent) expect real estate prices to rise by up to 10 per cent in the next five years, with another 14 per cent expecting prices to rise more than 10 per cent. However, in addition to long-term optimism, more than 60 per cent of survey respondents indicated price sensitivity today given current worries about economic growth.
“We see mixed sentiments in the survey – with people focused on economic pressures today, and expressing concerns about an over-priced market in Bangkok,” said Kamolpat Swaengkit, country manager of DDproperty, a subsidiary of the PropertyGuru Group. 
“But we also see very strong long-term optimism about the Bangkok market, and we attribute this to recognition that urbanisation will continue in Thailand. This will drive demand and, ultimately, make Bangkok one of the best cities in the region to buy property, and in particular a condo.”
The survey revealed that buyers continue to prioritise location when considering a condominium purchase in Bangkok. Ninety-four per cent of survey respondents indicate location as the primary factor in their buying decision. Infrastructure, amenities and price per square metre also factor significantly in buying decisions.
A majority of those surveyed would like to see the Thai government take proactive steps to manage the real estate market. Nearly 60 per cent of those surveyed said they would like to see the government address affordability issues. “From a regulatory standpoint, we believe survey respondents liked things such as a first-time buyers program, the elimination of housing transfer and mortgage fees – and we believe people may also be seeking relief [from the] challenges of obtaining a mortgage,” said Kamolpat.
Overall, Thai sentiments regarding the real estate market in Bangkok are trending slightly downwards from a satisfaction rate of 68 per cent in 2015, 62 per cent in 2016 and 57 per cent for the beginning of this year.
When asked about their intention to purchase a property in Bangkok in the next six months, 43 per cent of the respondents are optimistic and would consider buying a residential property. The majority would consider both newly developed and resale properties – and condominiums especially.
Even with the mixed feelings about the short-term environment in Bangkok, survey respondents indicate a strong preference to invest close to home. When asked about their intent to purchase a condo overseas, less than one per cent said they would do so. The vast majority said they would make their next purchase in Bangkok.
The survey, conducted every six months, sampled over 500 respondents in Bangkok, and over 3,300 respondents across the region.