The real estate market in Thailand’s pre-pandemic has been booming and on the rise for a long time. As a result, domestic and foreign investors rushed for a piece of the pie in the real estate market in Thailand. Which lead to the Thai Baht was pre-pandemic solid, and new developments were launching left, right and, center.

The real estate market in Thailand had all sorts of ranges for everyone to purchase and make an investment. From luxury high-rise condominiums to low-rise condominiums, houses, and villas in top tourist destinations as Phuket and Koh Samui. Investors were all flocking in Thailand to purchase a holiday home or a piece for real estate for rental yield in Thailand. 

Looking back to Thailand’s pre-pandemic real estate market boom, prices were high. New Every month, new condos are launched, and sales transactions are coming in from all directions. Top property developers brought massive land areas near major public transportations stations. But the property market during the high got stagnated. New condos rapidly launched, and it became overwhelming to buyers from what condos to choose or purchase. No innovations or designs were coming in the real estate market. With the pandemic and Thailand got struck by the third wave, the market is changing. Here is to look at how ’Thailand’s real estate market is trending towards the end of the year and beginning of 2022. 

Mini-Hiatus for New Developments 

In pre-pandemic, during the year 2018-2019, Thailand was launching new condo developments month after month. Fast forward to the year 2021, and they had been a halt in new property launches. Top property developments are going through all unsold units at a discount price. Real estate inventory units in Thailand have been piling up since the boom and high real estate market. In 2021, they are roughly around 30% of unsold units in Thailand because of rash and quick decisions for launching projects. Investors from China, Hong Kong, and the U.K. had decreased because of less confidence in the government handling the pandemic.

But on the other hand, a halt in releasing new projects has made the real estate market have some uptick and movements. Decision-making becomes quicker, as they are new supply in the market as of yet. The buyers are also getting a property at discount prices for condominiums that generally would not be at a lower price. 

Emphasis on Low-Rise Development 

Thailand’s property market cooled down significantly because of how the third pandemic wave hit Thailand hard. But in hindsight, the third wave offers a chance for property developers to adapt and change how the market is trending. 

One major trend is the robust sales for low-rise condominiums in Thailand. Low-rise always seems to be an afterthought in the Thailand market. Low-rise condominiums are not in the central business district of Bangkok, always at the outskirt of Bangkok. People are used to living with the pandemic; low-rise condominiums offer large interiors and spacious outdoor space for their residences. One major swift is how buyers are looking for ample outdoor space. But large interiors with added innovations are what buyers want to work, study, and relax at home during the pandemic and even after the pandemic. 

Thailand’s SET-listed company Noble Developments plans to launch 17 new projects consisting of low-rise and townhouses on the outskirts of Bangkok, as reported on Bangkokpost.com. Noble Development has seen sales transactions and income for mixed low-rise and townhouse developments. Many other top developments emphasize low-rise condominiums but with good sales locations such as Din Deang, Ratchaphruek, Rama II Road, Huai Kwang, etc. 

Charoen Nakhon: Old Bangkok 

The old town or old neighborhood outside central Bangkok is the Charoen Nakhon neighborhood. A district long ago held the value of being near the Chao Phraya river but left in the rear window when urbanization began. Recently, Charoen Nakorn has come back to the fold of urban planning. Significant changes with BTS and MRT (underground train) expansion and shopping malls open with Japanese investors turned the neighbor nevertheless. The neighborhood has the charm of old Bangkok. Charoen Nakhon’s surroundings are temples, riverboats, ancient street food stalls, and old themes cafe to enjoy ancient Bangkok food and culture. 

Property developers have looked into the area of how corporate workers can travel into Sathorn and Silom easily. Secondly, with the charm of old Bangkok and arts and photography being prominent in Charoen Nakhon area, property developers focus on artists and corporate workers as their main focuses. Condominium facilities are co-living spaces but with incentives of photography studios of the artist, photographers, and videographers in the neighborhoods. Property developers such as Sena and Niche mode joint ventures providing investments and rental yields with condominiums range around 2-4 million to target artistic careers and business ventures in the area. 

Shifting Outside The City 

Bangkok City is known for its high skyscrapers, and of course, the traffic and weather. However, looking at Bangkok from a rooftop bar, you would notice tall buildings surrounding you for like 10 kilometers. According to DDotproperty.com, 80% of Thai residents live in condominiums or apartments. Around 20% live in townhouses or semi detaches townhouses. Thai home buyers are shifting towards townhouses during the pandemic as a health and safety cautions. 

Many Thai populations are considered to be young and upcoming families members or couples. Townhouses and Detached homes are mainly outside of central Bangkok and do not appeal to foreign investors or even Thai buyers before the pandemic. Thailand’s government announcing Thai’s plan to live with the pandemic, townhouse, and detached houses sales rose 26% as of 2021 and 36% by 2022. Sansiri, Thailand’s leading property developer, has announced plans to launched 24 new projects considering low-rise townhomes and mixed facilities houses, stated on Bangkokpost.com. 

Top developers are considering townhouses and single detached houses as pre-sales, and sales for each property type rose during the pandemic as condominiums sales dropped. However, accordinglowerdiscountTheto Bangkokpost.com, with townhouses hovering around 2-5 million baht, the prices are managing to high purchasing power consumers and low purchasing power consumers. Townhouses developed by Sansiri, mainly located near expressways for families to quickly and easily travel to central Bangkok for work or leisure time. The townhouse market range is for buyers looking into the real estate market, with health cautions but looking for an extensive interior to work at home and to have leisure time at home.

As we have passed the middle of the year and moving towards 2022, Thailand’s real estate trends are moving towards something different. Thailand withs pandemic situation, weakening Thai Baht, and consumer behaviors have lead to changes in Thailand’s real estate market. Changes were not in the plan, but good changes to the diverse Thailand real estate market and not stagnated. Low-rise developments do not mean an end to high-rise condominiums as condominiums are still the driving force for the property market. Instead, the market is looking at prices and how to attract consumers with attractive prices. Pruska Developments emphasizes condominiums’ costs to hover around 1-3 million baht to counter and attract more buyers. The prices will highlight low-rise condominiums but would not limit to high-rise condominiums on the outskirt of Bangkok.

With the pandemic, Bangkok residential districts have seen an increase in sales as people would prefer to live not in central Bangkok. Outskirts of Bangkok are less attractive because of transports, but as trains lines are everywhere in Bangkok, transportations have become a mooted point. Prices for condominiums outskirt for Bangkok hover around 1-4 million baht, targeting Gen Z investors, middle-income salaries, and foreign investors looking to start a business in Bangkok and want to stay long-term.