DDproperty, Thailand’s No. 1 real estate marketplace, reveals an overview of the real estate market. In the first half of 2022, it still did not recover after facing various challenges from the economic slowdown. Inflation has continued to rise since the beginning of the year. including rising interest rates Combined with the Russian-Ukrainian war that has affected the prices of energy and building materials to rise accordingly.
It has become an important factor that drives consumers to decide to delay their plans to buy a home, despite the demand. The low-rise housing still dominates the hearts of home seekers. This is evident from the continued growth in demand. High-rise housing is still in demand among tenants. real estate business Win the full opening of the country to attract foreign purchasing power This will help drive the condominium market to grow again. Expect the Thai real estate market in the second half of the year to have a gradual recovery. Suggests that the government has issued measures to stimulate the economy that are right at the point to increase purchasing ability Awaken consumer confidence stimulate real estate growth to recover faster
The latest data from the DDproperty Thailand Property Market Report Q2 2022 – Powered by PropertyGuru DataSense reveals the Bangkok housing price index. dropped to 83 points, or down 1% from the previous quarter. This is 17% lower than the price index of 2018 (before the spread of COVID-19). In addition, the past New Normal lifestyle has resulted in consumers looking for low-rise housing. climb This is evident from the detached house price index that continues to grow. by up to 5% qoq. and an increase of 19% from the previous year. The townhouse price index rose 2% qoq. and an increase of 2% from the previous year. While the condominium market, although the price index stabilized from the previous quarter.
But compared to the previous year, it dropped by 6% because the purchasing power of consumers in this group has not recovered. Coupled with the fact that foreigners, another important purchasing power, have been away from the market for a long time, however, this year is still a golden opportunity for ready long-term buyers and investors. Because housing prices at this time are still slowing. And when considering various environmental factors, there is a tendency that property prices will increase in the second half of 2022
Mrs. Kamolpat Sawangkit, Country Manager of DD Property, said, “The economic recovery trend is a reflection of the growth direction of the real estate market. that still has to be tired for another year Because the challenge right now is not due to the impact of COVID-19. alone but was reinforced by higher inflation Oil prices and building material costs continued to rise due to the effects of the war between Russia and Ukraine. All of which directly affect the cost of living of consumers and reduce their confidence in spending.
Data from the Consumer Confidence Index survey, April 2022 by the Center for Economic and Business Forecasting. The University of the Thai Chamber of Commerce found that the Consumer Confidence Index fell for the fourth straight month and was the lowest level in eight months since September 2021, as consumers remain concerned about the spread of COVID-19. Omicron species high cost of living problem and the effects of the Russo-Ukrainian war This is another factor that affects real estate developers as well. This can be seen from the report on the confidence index of property developers in Bangkok – metropolitan areas in the first quarter of 2022 of real estate information centers. GHB’s index declined from the previous quarter to 47.1, a return to below the median (50.0), reflecting that this year’s market growth may require a combination of support from both the government and non-governmental organizations. operators and consumers
This year is still an opportunity for the low-rise housing market. which has continued to grow since the epidemic And it is evident from the demand for low-rise housing that tends to increase by 48% from the previous year. which consumers consider to meet the needs of long-term living For condominiums, although the price index is stable, there is still a chance to grow in the rental market. After rent demand increased by 50% from the previous year. If the country is fully opened and the government has measures to encourage more foreigners to work or invest in Thailand It will be an important positive factor that will encourage the condominium market to grow again.
Interestingly, some locations outside the Central Business District (CBD) and outskirts of Bangkok, such as Lat Krabang, Sai Mai and Thawi Watthana, have seen higher rental rates. Therefore, it is an opportunity for those who want to invest in real estate for rent. This is also a great opportunity to own homes at affordable prices for financially savvy buyers and long-term investors. As most housing prices continue to slow down. And there are still some housing projects built at the same cost in the market to choose from. before the price trend will increase in the second half of 2022
“From the factors that create challenges all around and all affect the recovery of the real estate market. inevitable Thai I think that the government measures that are currently in place may not be strong enough to stimulate the market that has been stagnating for a long time. The government should consider additional stimulus measures for the real estate sector, such as a first-home tax deduction. or expanding the measure to reduce the transfer of ownership-mortgage fees to cover all housing levels Including the measures to stimulate the economic sector that are precise and clear To help increase purchase ability and build consumer confidence. Because despite the full opening of the country But believe that the return of foreigners should not be as active as in the pre-Covid period. and growth in the real estate market It also depends on the degree of easing of the international situation. whether the epidemic or various conflict situations, it is expected that the overview of the Thai real estate market in the next 3-6 months It is in the phase of a gradual recovery rather than a leap forward growth,” concluded Mrs. Kamolphat.
Buyers also focus on single-family homes. The rental market is still mainly at the condos.
Low-rise housing is still hot. The single-detached home supply index increased 40% in the year. The supply index, or number of homes, rose to 233 from 229, or 2% qoq (up 13% from the previous year). Low-rise housing continues to come in strong. As a result, the number of single detached houses increased the most at 11% qoq. or an increase of 40% from the previous year. Meanwhile, townhouses increased 6% qoq, or 25% qoq.
Condominium, although stable from the previous quarter But during the year, it increased by 11%, reflecting that entrepreneurs and consumers who have horizontal products in hand bring more products to sell. To respond to buyers for real living (Real Demand), which tends to increase purchase demand, especially single detached houses, which increased 3% q-o-q and up to 48% y-o-y. This is a positive sign even though the product absorption rate in the market or the actual purchase rate is not very high. As for condominium projects, despite the stable supply index But expect the number to increase in the following quarters. This can be seen from the confidence of entrepreneurs who start launching new projects continuously to penetrate new target groups.
However, while demand remained unchanged from the previous quarter, it rose 33% year-on-year and 70 percent from the pre-epidemic period (4Q19), reflecting that consumers are starting to reconsider. The need for more housing
The rental index remained stable. Even though people interested in renting condos have increased by 50% in the year even though the rent index in Bangkok Most recently, it was stable at 90 points from the previous quarter and down 6% from the previous year. But considering the trend of the rental index growth in that year. Single-family homes rose by 18% and townhouses up 7% from the previous year. Contrary to the condo rental index, which dropped 6% in the year, reflecting that low-rise housing still meets the needs of tenants. In terms of real estate supply index For rent there was a decline of 5% qoq but up 21% y-o-y.
by decreasing all forms of housing Condominiums declined 5%, detached houses declined 3% and townhouses declined 2% qoq. In addition, the rental market has interesting growth opportunities. This is evident from the rental demand index rising 7% qoq (42% y-o-y), with condos’ rent demand increasing 11% qoq and up 50% yoy. This is different from single detached homes that declined 9% qoq (up 20% qoq) and townhouses decreased 9% qoq (up 15% qoq), reflecting the recovery trend of Condo rental market that still has a target audience that is not less interested
The locations with the highest price index in this quarter were mainly in the non-Central Business District (CBD) and outer Bangkok areas, benefiting from new mass transit projects that were already in service to help push. growth as follows:
- Thawi Watthana District, located in the outer Bangkok area, saw the highest price index increase, 15% qoq and 22% yoy. The single detached house’s price index rose the most at 16% qoq. Benefit from the Light Red Line Project Bang Sue – Taling Chan section Makes the journey connects the corners of other cities and the city center of Bangkok. more convenient
- Taling Chan District, located in the outer Bangkok area, saw a price index increase of 7% qoq and up 12% from the previous year. The detached house price index increased 1% qoq. It is another location that has been benefited from the light red line project. Bang Sue – Taling Chan section crosses over
- Bangkok Yai In an area outside the central business district The price index rose 3% qoq and 3% yoy, with condos having the biggest increase of 7% qoq. There is a MRT Blue Line project that crosses over 2 sections, both Bang Sue – Tha Phra. and the loudspeaker – the second Which is connected at Tha Phra Station It is another important factor that makes this location attractive.
- Bang Bon District, another location in the outer Bangkok area, although there is no electric train crossing over it, it is considered a large source of work and residence. has potential for growth As a result, the price index rose 10% qoq but dropped 26% yoy. The single detached house’s price index rose the most at 9% qoq.
- Pathumwan was the only district in the Central Business District (CBD) to experience an increase in price indexes, up 3% qoq and 12% y-o-y, with condos having the biggest gains at 3%. from the previous quarter The potential of this location also comes from being close to the BTS SkyTrain project, both the Sukhumvit Line and the Silom Line and the Blue Line. Hua Lamphong – Bang Sue and also near the source of work and leading educational institutions It is one of the interesting locations in the heart of the city. The price index continued to increase.
