Bangkok Property Market
The Greater Bangkok property market should keep growing in the 4th quarter of this year even with no government sponsored tax incentives to be enacted, reports local media. Condos are expected to be the most popular unit type with detached houses, townhouses, and duplexes also interesting potential buyers.
The city’s property market will remain stable to close out the year because of continued government spending, accelerated disbursement, higher state enterprise investment, rising imports of capital goods, eased lending regulations by financial institutions, and relatively low interest rates, says Adirek Saengsaikaew, Chairman of the Organising Committee for the 37th House and Condo Expo, to the Bangkok Post.
The House and Condo Expo brought in an estimated THB12 billion in real estate sales with more than 100,000 visitors attending the annual property event. Show organisers claim that the event will help improve property market sentiment in the 4th quarter of this year and into early next year. That is because buyers at the show who purchase residential units represent real demand and no speculators.
The property market in Greater Bangkok is expected to grow by 5 to 10% this year, up from an estimated THB383 billion recorded in 2016, according to Adirek. Growth between 2015 and 2016 was 20.9%. That total was particularly high because of the property tax incentives that were put into place by the Thai government.
The property market in 2018 will see a lot of strong competition as large foreign companies, including many from Japan, start up joint venture projects with local developers. This will cause land prices in prime locations to rise with condo sales prices predicted to increase by 5-7%.
“At present, land is somewhat scarce. Most of the large plots are owned by government units that prefer long-term rental to sales,” says Prasert Taedullayasatit, President of the Thai Condominium Association.