Thailand’s real estate sector did not fully recover in 2022

Thailand’s real estate sector did not fully recover in 2022 due mainly to the economic downturn along with higher inflation and interest rates. The war in Ukraine has not helped. But while the recovery was not all it could have been, the outlook for 2023 is more hopeful.

Thailand’s Consumer Confidence Index stands at 47.9, the highest in 20 years, so spending confidence is back. The Bank of Thailand’s loan relaxation is about to end but has succeeded in encouraging customers with real demand to purchase property.

And that demand is not in key tourism destinations. Bangkok is still top of the list for home buyers followed by Nonthaburi, Samui Prakan, Pathum Thani, and Chon Buri. Tourist spots such as Chiang Mai (6), Prachuab Khiri Khan (7) and Phuket (8) didn’t make the top 5.

Surrounding provinces have become more interesting for home buyers thanks to train links between the city of Bangkok and Greater Bangkok (Nonthaburi and Pathum Thani). For Bangkok, transportation is a vital factor, which is why Suan Luang on the city’s east side, is now the leading location. The Yellow line (Lad Phrao-Samrong) is almost complete and slated to open in the middle of the year. The district already has the Airport Rail Link and the Eastern Railway.

The inner city is no longer among the top locations in Bangkok where prices are not for the mass market, and certainly not affordable for the majority of new home buyers. Following Suan Luang, the top locations are Bangchak in Bangna, Khlong Tan Nuea in Wattana, and Lad Phrao.

According to ThaiPBSWorld, Khong Tan Nuea is top for condominiums. Bangchak is easily accessible by BTS Skytrain and most coveted area for rentals, some condos and apartments for rent are still affordable.

Despite travel restrictions on the mainland, Chinese buyers dominated condo transfers last year, with Burmese nationals in the top 10 for the first time, at seventh.

Karlo Pobre, managing director of CIM Property Consultants Co, a Yangon-based property consultant, said…

“Many families in Myanmar purchased second homes in Thailand for three key reasons. Firstly, for investment purposes in the form of storage of wealth. Secondly for better healthcare services and, thirdly, for their children’s future educational use.”

The number of condos transferred to people from Myanmar rose to 188 units in the first nine months of 2022 from 30 in the whole of 2021. Bangkok was the most popular city for second homes.