Bangkok’s real estate market will improve in 2022

Bangkok’s residential market will improve next year as supply and demand are more balanced, while foreign buyers, especially Chinese, are still interested in Thai real estate, according to real estate experts.

Suphin Mechuchep, chairman of real estate consultant JLL Thailand, said potential future demand for Bangkok’s residential market will include foreigners whose demand will increase due to the flexibility of remote working.

“Those who work in the office for three days and at home for two days can create new demands,” she said.

“The growing demand will also come from the concert economy with concert workers from other countries and digital nomads from around the world.”

She said Bangkok continues to be an attractive option for foreigners, mainly due to the lower cost of living.

However, the demand from foreigners will be higher once the borders are fully opened.

“We need to prepare the public health system and pandemic controls like last year, while at least 80% of people in Bangkok and major destinations should be vaccinated in order to boost the confidence of foreign buyers in a short time. time, ”Suphin suggested.

She said a longer visa can boost both demand for properties among foreign buyers and wellness, medical center and longevity activities. The work permit process should also be less complex.

To drive sales from overseas buyers, developers need to target the right target markets.

For several years, the main foreign buyers in Thailand have been Chinese and Singaporeans, Ms. Suphin said.

Kamolpat Swaengkit, country director of real estate portal website DDproperty.com, said Chinese buyers were interested in Thai real estate because the annual return was over 5%, which was higher than their home country. .

“Many Chinese are looking for a second home for their retirement. Some send their children to Thailand to study while developing their family business there. Some want to settle down to do business in Southeast Asia, ”she said.

All of them love Thai culture and lifestyle, while the cost of living is also lower than in many countries.

The price ranges that capture this market are those below 5 million baht per unit which accounted for 54%, followed by 5 to 10 million baht (16%).

Rathawat Kuvijitrsuwan, head of research and advice at real estate consultant CBRE Thailand, said investors in the Asia-Pacific region have more intentions to buy properties in 2021, compared to 2020.

“Preferred regions for cross-border investments include developed Asian countries like Singapore, China and Japan, followed by emerging countries like Southeast Asia,” he said.

Mr Rathawat said the most preferred investment sectors were industry, logistics, warehouses and data centers, followed by office, residential, hospitality and retail.

“An oversupply is not widespread,” he said. “There is still a strong demand for retirement homes and places near universities. Exploiting these markets with the right prices can offer a higher percentage of success. “

Vichai Viratkapan, acting director general of the Real Estate Information Center (REIC), said the housing market should be able to pick up next year, with local demand driving the recovery.

“A drop in the newly launched supply this year will bring about a market equilibrium,” he said. “As the new supply decreases, the stock will eventually be absorbed and a positive sign of new supply will begin next year.”

REIC predicts that at least 80,000 units of new residential offering will be launched in Greater Bangkok next year, compared to 53,693 units expected this year.

The new residential offer launched in Greater Bangkok in the first half of the year fell by 37%.

The biggest drop was in condominiums, with a 42.5% drop as developers froze new condominium projects and turned to low-rise homes.

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