Mr.Phanom Kanjanathiemthao, Managing Director, Knight Frank Thailand Co., Ltd., anticipates that Bangkok’s residential property market will be among those that experience the most growth in the range of 5 to 7 per cent in terms of number of units and project value. This corresponds with the views of major project developers who, on the whole, continue to view the market as one with growth opportunities; as such, their plans to propel their businesses forward reflect the residential market’s potential. At the same time, their offerings and products in the next year should remain the same, without major changes in room layout or unit sizes; developers will instead look to enhancing project facilities in order to differentiate themselves and help boost sales. In general, projects will include features like automated parking, which can add 20 to 30 per cent to their capacity, compared to the old parking systems; and home automation systems.
The development of residential projects next year will continue to focus on areas accessible by the train network, especially the Orange Line, the Blue Line, and the extension of the Green Line that is currently in progress. The market will expand to the outskirts of Bangkok, with the trains making it convenient for people to travel into the city as well as to anticipate their approximate travel times. As for the single home and townhouse market in the outskirts of the city, the outlook is that the rate of expansion will be low, with traffic issues accounting for the main factor hampering growth. Also, single home and townhouse projects are generally far from the train lines. There are very few plans to build new roads to accommodate the number of cars and ease traffic issues. The condominium market thus has an advantage to being close to the train lines; moreover, they don’t require huge plots of land for development.
The market for B-C grade condos will remain largely comprised of Thai buyers. Condos in the Sukhumvit area, serviced by the Green Line – Baring trains and the subway from Bangsue – Ladprao, will attract more foreign investors such as those from China, Hong Kong, Malaysia, Singapore, and Taiwan. Investors from other countries also exist but in small numbers. The factors that encourage target buyers to make their purchasing decisions vary from market to market.
1.Condominium Market – Buyers will first and foremost consider the location, with the ability to travel easily into the city as an important factor. Also, they will look at the development, unit size, facilities and amenities, and pricing.
2. Single House and Townhouse Market – Buyers will first and foremost consider the usable space, followed by facilities and amenities in the development, and location.
The outlook for growth in the industrial property market depends on support from the government, including investment in infrastructure and tax incentives. In particular, if the Eastern Economic Corridor (EEC) takes shape and comes on board as planned, the industrial property market will grow while attracting foreign investment funds. For the logistics and warehousing market, growth will be seen in terms of volume. The office market shows positive signs as there is relatively little supply entering the market while the economy and business are expected to expand continuously. Demand for office space will rise and rental rates will likely experience a steady increase as well.