Knight Frank Thailand Indicates Bangkok Condominium Market Slowing While Resale Market Continues Upward Trend

La Defense skyscraper in Paris,France. Images were created during the istockalypse event in Paris 2016. They have been captured on the public streets of the business district.

Mr. Frank Khan, Executive Director and Head of Residential, Knight Frank Thailand, indicated that “the Bangkok condominium market was pretty slow and soft over 2019, as was the case in several other major cities like Pattaya, Hua Hin and Phuket. The take up rate of the market in 2019 ended with a 15 to 20 per cent decline in comparison to 2018. It seemed this slowing economic growth was most likely generated by the world economy although many government mega projects are ongoing across Bangkok. A number of Thai buyers, having invested in the property market since the past two to three years, delayed their investment promptly as the result of the market reaching its saturation. Moreover, the stronger baht hit a six year high, which could be a concern for the worsened foreign investment sector.”

“Consequently, sales have not been at the same rate as they were in the last couple of years, especially from Chinese investors. The latter has sent a good bit of money abroad to invest in the property market, and the sending of such large amounts can hamper China’s economic stability, so China possesses the strict regulation of money transferring for personal investment. Meanwhile, the Chinese residing outside of China are parking their money and investing in where they will gain the best returns.”

“On the contrary, the resale market continues on a consistent upward trend in emerging areas along BTS and MRT lines, such as the CBD and Sukhumvit, reflecting the fact that real demand for condominiums still exists and the opportunity for buy-to-let condominium investors is clearly out there. A slowdown in the property market will enable investors to buy properties in favourable conditions; large discounts offered would enable greater margins.”

“With the world’s moderated economy and the above factors, as well as much excess inventory, the real estate market will remain weak throughout 2020. This year will be challenging for developers. They should prepare marketing strategies to meet new generation demands from buyers aged 35 to 40 in regard to new technology and convenience; smart living; and surrounding infrastructure. Such qualities would attract the buyers’ attention; also, very attractive promotion prices would draw opportunist investors who are waiting in the market.”