19 -23 June 2023: Weekly Thailand Property News

Myanmar Buyers Lead Thai Condo Market, Chonburi and Bangkok Dominate Foreign Transfers in Q1 2023

In the first quarter of 2023, a noteworthy trend unfolded in Thailand's real estate market as buyers from Myanmar emerged as the dominant force in foreign condominium acquisitions. With an average unit value of 6.5 million baht, Myanmar nationals made a significant impact. Meanwhile, Indian buyers prioritized spaciousness, favoring larger units averaging 77.7 square meters. The sheer number of transfers showcased China's influence in the market. Notably, Chonburi emerged as the focal point for these transactions, boasting the highest volume of foreign ownership transfers over the past five years. Chonburi and Bangkok together accounted for an impressive 84.8% of the total transaction value, underscoring their appeal to foreign investors. Surprisingly, most foreign buyers opted for units priced below 3 million baht, while the 7.51 - 10 million baht range garnered the least interest. However, condominiums exceeding 10 million baht commanded the highest overall transfer value, contributing a substantial 32% to the market.

Reference: https://www.bangkokbiznews.com/property/1074510

Foreign Condo Transfers Surge in Q1 2023, China, Russia, and US Lead the Way

The first quarter of 2023 witnessed a remarkable increase in condominium ownership transfers by foreign nationals in Thailand. According to the Real Estate Information Centre, there was a notable year-on-year surge of 67%, amounting to a total transfer value of 17 billion baht. The number of foreign ownership transfers rose by 79.2%, totaling 3,775 units, continuing a trend observed since Q2 of 2022. Moreover, the total area of condominiums transferred increased by 73.8% from the previous year, reaching 168,664 square meters. Chinese nationals dominated the market with a significant 46.3% share of the total transfers, followed by buyers from Russia, the United States, the United Kingdom, and Germany. Chinese investors were responsible for nearly half of the total transfer value, accounting for a commanding 47.8% share.

Reference: https://www.bangkokbiznews.com/property/1074503

Population Decline Presents Challenges for Bangkok's Residential Market Sustainability

The future sustainability of Bangkok's residential market and its surrounding areas encounters obstacles as a projected decline in population looms. Anticipated statistics indicate that younger age groups will witness a notable decrease of around 6-7%, raising concerns about the market's long-term growth prospects. Bangkok's current population stands at approximately 5.5 million, with occasional fluctuations but limited potential for expansion. In contrast, neighboring provinces experience a modest annual growth rate of 1.5%, contributing to the overall population of the metropolitan region. To ensure the resilience of the housing market, sustained economic opportunities must attract individuals from other provinces. Accessible and affordable housing options in the outskirts of Bangkok, along with efficient transportation connectivity to the central business district, play vital roles in addressing housing demands. The consequences of population decline are expected to manifest in approximately 20 years, highlighting the need for unwavering efforts to sustain continued economic growth and attract a diverse population.

Reference: https://www.bangkokbiznews.com/property/1073887

MRT Yellow Line Transforms Bangkok's Eastern Zone with Promising Economic Prospects

The inauguration of the MRT Yellow Line in Bangkok's eastern zone marks a significant milestone, unleashing a wave of transformative opportunities. Projected to serve a staggering daily ridership of approximately 200,000 passengers, this vital line connects key areas including Lat Phrao Road, Bang Kapi Intersection, Lam Salee, and Srinakarin, providing much-needed relief from crippling traffic congestion. Each station along the line unveils immense economic potential, fostering the development of upscale condominiums, townhomes, and premium office spaces. Noteworthy destinations encompass the dynamic Ratchada-Ladprao intersection, the thriving Chok Chai 4 Station, and the vibrant Lat Phrao 83 Station. Industry leaders such as the Sirivadhanabhakdi Group and the Pruksa Group actively drive these projects. Additionally, the emergence of mixed-use complexes, skywalks, and the revitalization of shopping centers further amplifies the impact of the Yellow Line. With a promising future on the horizon, Bangkok's eastern zone is poised for exceptional progress and prosperity.

Reference: https://www.thansettakij.com/real-estate/568746

Thai Real Estate Market Faces Headwinds in the First Half of the Year

The Real Estate Information Center (REIC) anticipates a slowdown in the Thai real estate market in the coming months. Factors such as geopolitical tensions, inflation, and rising energy costs contribute to the challenging landscape. The impact of increased interest rates is particularly pronounced in the lower-priced segment, with tighter credit availability and the removal of Loan-to-Value (LTV) measures by banks. Consequently, the industry focus is shifting towards high-end properties and foreign markets. The launch of new projects is expected to decline, prompting experts to emphasize the importance of collaboration between customers and developers to ease financial burdens. Calls for supportive measures from the government have arisen, given the impact of interest rate hikes on consumer sentiment and purchasing decisions. Developers are adapting their strategies to target high-end and foreign buyers, while industry leaders stress the necessity of thoroughly assessing the financial capacities of loan applicants in light of rising interest rates.

Reference: https://www.reic.or.th/News/RealEstate/467544

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