Late 2018 trends in the Bangkok property market suggest that investors will find strong yields in select areas and market segments into 2019. Bolstered by low interest rates, long-term growth in the Thai economy, and sustained foreign interest, the Bangkok property market will enjoy continued investor demand as well as favorable conditions for developers to undertake new projects, particularly in the high-end segment. Government investment will continue to attract development along transit corridors and in Bangkok’s business and expatriate districts.
New housing prices in the upscale and expatriate segment have shown robust growth over the past year. In its most recent report, the Thai Real Estate Information Center cites an overall increase of 11.7% for condominium prices year-on-year. Neighborhoods with high-end condo developments saw more dramatic increases, including Big Sue (33.5% y-o-y), Pathumwan district (34.9% y-o-y) and areas along the Airport Rail Link (35.7%). The uptake rate of new high-end condo developments has hovered around 80% in the past quarter An oversupply in the mid- and low-end segments has led to more modest gains, however this recent data suggests a sustained demand in the high-end market segment.
Growth in 2019 will be driven by several market factors. Expatriate investors will continue to show keen interest in Bangkok real estate, with shifting demographics creating new areas of growth and opportunity for developers. Chinese demand for Thai real estate has increased dramatically in the past several years, and this trend is set to continue into 2019 as investors, expatriate workers, and holiday makers seek out Thai properties as reliable returns on their investments.
Government investments in Bangkok’s infrastructure will also bolster property values in key corridors around the city. Recent data shows the effect on condo prices along the Airport Rail Link and investors can expect similar returns in areas that will be serviced by Skytrain line extensions. Multinational infrastructure projects, such as China’s proposed “new silk road”, will have a knock-on effect benefiting the overall Thai economy and further bolster international interest in Bangkok real estate.
The Thai real estate market has experienced steady growth over the past decade, with Bangkok benefitting in particular as the country’s financial epicenter. Overall, the regulatory environment remains favorable for investors and developers, with low interest rates and relatively uninhibited consumer access to credit.
The Bangkok property market in 2019 presents promising investment opportunities. Foreign investors, first-time entrants into the Thai market, and buyers seeking to expand their real estate holdings in Bangkok would be well advised to seek out agency services to guide an informed investment.