By 2017, a 10-30% increase on Bangkok’s overall land prices is expected despite the one year postponement of land and building tax. This expected growth will drive the average prices of real estate in Greater Bangkok to increase by 6-7%.
Nalinrat Chareonsuphong, said that the average expansion of land prices in 2017 will be higher than the 5-10% increase from 2015-2016.
An area on Wireless Road owned by the British embassy is anticipated to be the new high record plot if sold. This area is not far from the highest-priced-per-square-wah plot on Chidlom Road which was purchased by SC Asset Corporation Plc.
According to Mrs. Nalinrat, due to the increase in land prices and scarcity of land, the highest increase of condo prices is expected in the inner city areas which can go up to 9-10%.
There was a 14% to 121,000 baht per sq metre increase on the price hike of Bangkok property this year compared to the 106,000 baht per sq metre in 2015. It is also an 8% increase from the last five years.
Conforming to the company’s research, there was a total of 40,000 units from the 94 projects sold this 2016 which is a 25% decrease from the 53,000 units of 2015. Due to this year’s mourning period, 5,000 units that were planned to launch fourth quarter of 2016 was scheduled for the first quarter of 2017. Despite the postponed launch, Bangkok property developers are confident about the growth of the Bangkok property market with the 70% of the real estate they sold on the second half
Among the locations of the Bangkok property for sale, the most number of condos sold were the real estate placed in Phra Khanong and Suan Luang with 10,700 units purchased. Next were by Phaya Thai and Ratchadaphisek with 9,200 units and Ngamwongwan and Tiwanon with 6,900 units. CBRE,, a leading commercial property and real estate adviser, foresees a continued demand for Bangkok property, especially apartments in prime locations such as Sukhumvit, Central Lumpini, and Sathorn. CBRE also sees luxury condos and low-rise housing sectors to be of more interest to buyers compared to mid- to lower-end projects. They say it is because people are more into real estate investing and are less affected by high-priced mortgages.
They say this is due to the fact that people interested in real estate investing care less about the difficulty in paying mortgages that opens to a bigger residential market.
You can find a list of condos and apartments available in Thailand here. Guidelines of housing loans and other information on property investment are available on our Facebook page.