Market Research Report
Residential Real Estate Market in Thailand - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
|Residential Real Estate Market in Thailand - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)|
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 78 Pages
Delivery time: 2-3 business days
Thailand boasts a unique real estate market, which is quite stable, despite the economic and political volatility in the country, which is especially true in the case of Bangkok. The total number of new housing plunged by 40.8% y-o-y to 20,883 units in Q1 2019 in Bangkok Metropolis and vicinity. Over the same period, new apartments and condominium units in the metropolis plummeted by 64.5% to 7,961 units, while housing projects fell by 4.5% to 7,786 units. On the other hand, self-built housing rose by 9.4% y-o-y to 5,136 units in Q1 2019. In Bangkok Metropolis land development licenses are also rising strongly by 14.7% y-o-y to 2,782 units in Q1 2019.
Ananda Development and Origin Property have announced plans to develop several hotels and serviced apartments in Bangkok and the Eastern Economic Corridor. Ananda Development has partnered with Ascott Limited to develop five serviced apartments valued at THB 12 billion, four of which will be in Bangkok and one in Pattaya.
In recent years, minor changes in Thai law have allowed nonresidents to explore the Thai real estate market further. There has been a rise in FDI investment in real estate activities in Thailand in 2018, compared to 2017. According to Sansiri PCL, there is a rise in real demand from foreigners despite challenges as they account for 30% of total sales.
The Bangkok metropolitan area was a prime investment location for China. Chinese buyers of condominiums have jumped dramatically over the last two years. The increase in Chinese buyers of Thai condominium property has partially been due to increases in restrictions or increased taxes for foreign buyers in other markets.
Thai banks are being conservative about new project lending to developers, so Thai developers are seeking funding from foreign partners. Most joint ventures to date have been with Japanese investors on a project-by-project basis for condominiums.
Large developers dominate the market with a high concentration rate. There is high competition in the upper end of the condominium market in Thailand. The slowdown in the condominium market has encouraged major residential developers to consider diversifying their portfolios into other property sectors, such as office, hotel, and serviced apartments. Major real estate players in Thailand Residential market are Sansiri Public Co. Ltd, Supalai Company Limited, Property Perfect, and Pruksa Holding.