An overview of bangkok, thailand property market 2016

An Overview of Bangkok,Thailand
Property Market 2016
Prepared by NirrtiGo – An International Real Estate Consultancy
http://www.nirrtigo.com/Property-Thailand
www.nirrtigo.com/Property-Thailand
Email us at nirrtigo@nirrtigo.com

Thailand – Supply and Demand
 In comparison with the other countries in the
region,Thailand still offers affordable investment
opportunities.
 Average 1 bedroom unit in Bangkok start at $86000
USD

Average Re-sale prices of Bangkok Downtown
Completed Freehold Housing units

Lets look at 2015
 In 2015 Real estate sector in Bangkok Continued to
expand.
 In the first quarter of 2015, real estate sector rose by 3
%, accelerated from 2.5 %in the previous quarter.
 On demand side, housing right transfer in Bangkok and
local areas and personal housing credit expanded by
6% and 12%, respectively.
 The property sector remained fairly happy due to high
liquidity in the market and pent-up demand filtering in
to the system, with a large number of project
completions.

2015 continues
 Activity has been particularly strong at the high
end of the market, with record prices achieved for
both condominiums and land.
 But the low- and middle-income property markets
have started to show signs of stress due primarily
to high levels of household debt and low
commodity prices.

Outlook 2016 - Commercial estate a leading
market
 Thailand's commercial real estate sector has continued
growth in Thailand's tourism sector combined with
economic recovery of its domestic market.The
relatively competitive property prices and sufficient
yields make Thailand an attractive market for investors.
 Next to that,Thailand is the leading market in hotel
residences, accounting for 37% of total projects,
followed by Indonesia with 22%,Vietnam at 18%,
Malaysia and Philippines both with 9%, 3% for
Singapore.The top three locations in the country for
hotel residences are Phuket, Bangkok and Pattaya.

2016 - Residential uptake in the
Metropolitan area
 Bangkok is the economic center of the country's
investment and development, and has the most
population in Thailand. Demand for homes close to the
mass-transit system will still grow strong. More
consumers will express interest in developments
towards the city's fringes, they still priorities locations
close to BTS stations for the commuting convenience
and relatively predictable commute times.
 When the government starts to invest in infrastructure
projects, that will open up new land for property firms
to develop residential projects.This will challenge
property firms to invest in the new locations following
the new mass-transit route from Bangkok to the
suburbs.

Existing Housing supply in Downtown Bangkok
2016

Newly Completed Bangkok Condominiums

2016
 Investment in infrastructure such as railway double-tracking,
motorways,and 10 new mass-transit routes will make
Thailand a regional transport hub after the Asean Economic
Community goes into effect at the end of this month.This will
boost demand to buy homes in Thailand,both in Bangkok
and in the provinces,as foreign companies invest in
Thailand as a gateway to other Asean countries.
The ratio of Income and property prices remains a big issue
for the majority of the locals.The fact is that most
condominium units are priced beyond their budgets,which
in turn is an indicator that the majority of condominium
owners along the BTS lines do not rely on the Skytrain
system for commuting,and that there remains plenty of
unfulfilled demand in this market….which is slowly being
taken up by foreign buyers with larger budgets.

Supply, Demand and Occupancy Rates in
Bangkok Thailand

2016
 The expatriate rental budget has not increased for many
years,while condominium prices have risen on average by
8-10 % per annum for mid-range grades,and by 15-20 % for
luxury grades.
 Tenants are willing to spend their budget on smaller units
with a higher per square meter rent if it is well located,well
decorated and newer.
 New buildings with smaller units therefore have a higher
chance of being rented out than older buildings.The
building facilities are also an important consideration.Going
forward,a building that offers a range of modern facilities,
such as attractive common areas, a well-equipped gym and
large swimming pools will be the preferred choice.

2016
 In 2015, the average gross rental yield (before
expenses and taxes) for Bangkok downtown
condominiums was approximately 4.8 %, a drop
from 5.4 % in the previous year.
 While Sukhumvit is the most popular area because
of easy access to the BTS Skytrain and proximity to
schools, hospitals, retail and leisure amenities, the
area also has more supply than central Lumpini and
Sathorn/Silom.

Rental Yield in Bangkok, Thailand

Contact us
 To invest in a property in Bangkok or other parts of
Thailand,
 Email at nirrtigo@nirrtigo.com and our international
property advisor will get in touch with you.

An overview of bangkok, thailand property market 2016

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