The Foreign Exchange Transaction (FET) Form (also known as Thor Tor 3), is an official document prepared under the Bank of Thailand (BOT) regulations to report foreign currency exchange transactions in Thailand. This document is evidential proof that foreign currency is used to purchase assets like property in Thailand. The FET form is only issued by authorised financial institutions like banks within Thailand. The authorised financial institution is that is issuing the FET will be the one who handled the exchange of foreign currency.
Why do we need the FET when purchasing Thai property? A requirement under section 19 of the Thailand Condominium Act for foreign ownership is that a foreigner must use a foreign currency that has been remitted into Thailand to pay for the full purchase price of the condominium.
Why can’t we use remittance services? Only authorised financial institutions like banks within Thailand can issue the FET form. The FET form shows that foreign currency has been used to pay for the property in accordance with section 19 of the Thailand Condominium Act. The handling bank in Thailand, upon request, will issue the FET form as proof of the remittance and exchange of foreign currency into Thai baht. The FET form will be required at the land office in order to register the transfer of ownership of a condominium unit in the name of a foreigner.
Can I use remittance services from my home country to the developer’s account in Thailand? No, you should not do that. This is because the FET form must bear the name of the overseas bank from which the money was remitted. This is why we tell all our clients to go to their local banks and use telegraphic transfers to make the payment for the property.
Can I remit Thai Baht from outside of Thailand to pay for the property? No, you cannot. You will need to remit in a currency other than Thai Baht to fulfil the requirements under section 19 of the Thailand Condominium Act. For example, if you are from Japan, you can remit Japanese Yen from your bank to the developer’s bank. You can also use other currencies like US Dollar. Any currency except Thai baht. If you remit Thai baht from outside of Thailand you will not be issued the FET form.
What happens if I do not follow the requirements? Is there any way for me to transfer the title to my name as a foreigner? We have encountered many instances whereby foreigners have failed to transfer their Thai property purchases to their names because of failure to adhere to the requirements under section 19 of the Thailand Condominium Act. The way to solve this is to transfer the full sum of the condominium in a foreign currency. Even though you may have paid the full sum to the developer, because you did not do it in accordance with section 19 of the Thailand Condominium Act, you will not be able to transfer the title to your name.
If you are unsure of the requirements when purchasing a Thai property, please contact our team for more information.
Bangkok can be a daunting city to explore and evaluate, for Property Investors as it offers a confusing selection of neighborhoods and roads. Interestingly conventional geographical delineations such as postcodes and even districts have very little meaning in this sprawling megacity.
Before tackling the question of “where”, it is important to understand “what” is the CBD. Very simply, it can be defined as:
The commercial, business and leisure center of a City
Many factors contribute toward consolidating an area’s status and position as part of the CBD. These include factors such as local infrastructure, office tower supply, mass transit lines, general transport links and even leisure options.
However Bangkok is a historical city and this wide definition of the CBD has meant that the capital has often experienced shifts in the exact boundaries of its commercial and business districts.
Bangkok’s evolution as an international city, has only been made possible by it progressive attitude to modernization and urban development. This development was experienced in stages notably:
1. Historically the river was an important mode of transport and trade; therefore commercial activity concentrated around the banks of the Chao Phraya River, Charoenkrung Road and Yaowarat (Chinatown).
2. However the pressure to modernize caught-on and Bangkok faced the emergence of newer commercial, retail and residential formats. This led to the development and regeneration of Silom, Sathon and eventually Wireless/Lumpini. Shifting commercial activity to these newly developed neighborhoods.
3. The final shift occurred when Mass Transit Lines (BTS and MRT) were developed connecting large parts of the city. This has had the effect of transforming Early-Sukhumvit into a leisure and retail hub for Bangkok.
These waves of urban development and the bridging effect of the mass transit lines, has now anchored the CBD. The area now comprises of 3 key neighborhoods:
– Silom/Sathorn
– Wireless Road/Lumpini
– Early-Sukhumvit (Nana- Phrom Phong’s Sukhumvit 24)
To be more specific one defines the boundaries of the Central Business District as:
Silom, Sathon, Rama IV Rd, Ploenchit, Wireless Rd, Asoke, and the early-Sukhumvit (Sukhumvit Road up to Soi 24)
Specifically Bangkok CBD classify into two distinct sections:
Core CBD
Basically comprising of Silom/Sathorn and Wireless/Ploenchit (The original CBD locations); these neighborhoods host a multitude of office towers, high-quality residential options, embassies and leisure/retail venues.
Outer CBD
This area is made up of early-Sukhumvit which offers a vibrant business environment (I.e. Asoke) and a wealth of retail/leisure options (I.e. Phrom Phong).
On a final note, most Property Professionals agree that the mass transit lines have firmly anchored Bangkok’s city center and the prime areas have already been established and consolidated. However the city is an ever evolving and constantly developing entity; interestingly, peripheral commercial and business hotspots are emerging throughout the Capital.
Some neighborhoods have started to present appealing case studies that could result in the extension of the initial CBD boundaries. These include:
–Rama 9/ Ratchadaphisek
– Phaya Thai- Ratchathewi
–Thong Lo/Ekkamai
–Rama III/ Riverside
*This is in no way an exhaustive list of up-and-coming areas.
It is important to note, that each area stated above is experiencing positive momentum in the form of infrastructure, commercial, mass transit and residential improvements.
This demonstrates the enormous potential and lucrative opportunities Bangkok offers Property Investors!
Credits: Fresh Editorial
One question that is commonly asked is “Where is the central business district in Bangkok?” A new report from one real estate firm hopes to answer that question.
The central business district, or CBD, commonly refers to an urban area within a city with the most commercial activity in terms of office buildings, retail centres and hotels. In Bangkok this is considered to be the area lying within Sathorn, Silom, Ploenchit, Wireless, Rama I, Lumpinee, Rajdamri and Sukhumvit. The latter has seen vigorous activity during the last 20 years.
Risinee Sarikaputra, Director, Head of Research and Consultancy for Knight Frank Thailand, explained: “This century we do not expect that the city centre will move, as the mass-transit systems have anchored the city centre to a fixed location, however the centre of Bangkok will expand along the mass-transit lines, as it is doing now, to places like Ratchadapisek.
“New sub-centres will emerge in areas the mass-transit system will serve, expanding and diversifying Bangkok.”
The MRT underground train system was completed in 2004 and this has supported the city’s expansion to the Ratchadapisek area. With new project developments at the Ratchadapisek – Rama 9 intersection, this area has become one of the most talked-about in terms of being the an emerging commercial area, and with strong potential to become an extension of the existing CBD in the future.
The development of high-quality office buildings, such as G Land Tower which is planned to be 615-metres high, the new Stock Exchange of Thailand and the AIA Capital Centre have increased demand from local and international companies to relocate their offices to the Ratchadapisek – Rama 9 area, the agency said.
Unilever has already relocated there, and in addition to the quality supply of offices, supporting amenities in the area offer easy access to the existing CBD, as well as roads linking northern and eastern Bangkok corridors. Rental rates are also very competitive.
Risinee added, “In the past two years we have also seen Bangna emerge as a new sub-centre. The area connects to the Eastern Seaboard via the Bangna Expressway, which was completed in 2000, and the Southern Bangkok corridor via the motorway which was completed in 2007.
“The location has attracted developers to pursue projects in the area, such as Bhiraj Tower at Bitec, which is estimated to be completed during 2016, and SJ Infinite 2, developed by WHA Corporation PLC at Bangna Km8.
“The Mall Group has also announced a mega project in this area called Bangkok Mall to be situated on a plot of some 100 rai. The development will include businesses, residential space, offices, and a theme park. The area has caught the eye of companies engaged in, and related to, airport operations and logistics as well as companies whose factories are located in the Eastern Seaboard.”
Additionally the relocation of Bangkok’s main train station from Hua Lumphong to Bangsue Grand Station has influenced the area around Bangsue. Located on 1,176 rai, the Grand Station will serve as Bangkok’s main transport hub, connecting provincial bus lines, rail links and the city’s subway stations. There will be around four rail routes that will be connected to Bangsue station, linking the northern, southern, eastern and western parts of Bangkok.
The area will also link many commercial areas, such as the Energy Complex, Central Ladprao and Chatuchak Weekend Market. There are many condominium developments in this area as it is conveniently served by various routes, with good connectivity to many parts of Bangkok.
Risinee added: “Bangsue is attractive, evidenced by the number of residential and commercial developments mushrooming in the area. The area also holds much potential for many condominium buyers and investors.”
Bangkok’s city centre itself will expand along the edge of the downtown areas, the agency said.
“People are willing to live in any part of the city if the mass-transit systems cover all areas. We believe that Bangkok’s city centre will not move but it will decentralise to convenient locations, supported by mass-transit systems, quality commercial and residential projects, and the availability of facilities and amenities in these areas,” Risinee concluded.
Credits: Andrew Batt (Author of this article)
AP Thailand unveils RHYTHM Charoenkrung Pavillion
AP Thailand with brand promise of “Cheevit Dee Tee Lueak Eng Dai” ready to deliver new ready-to-move-in condominium RHYTHM Charoenkrung Pavillion worth Bht 4,800 million
Conceptualized as The Luxury Gated Community, the one and only condominium in the Charoenkrung area comes complete with the epitome of living quality and great attention to designing the community to be private, safe and ready to deliver quality time inside quality space
The First Luxury Gated Condominium – First ever offering of a complete all-generation common area on an ideal 3.5 rai space
The Exclusive Private Retreat – the ultimate of aesthetics in city-centre relaxation with great privacy and beautiful panoramic view of the Chao Phraya river curve on Sky Facilities
The Best Quality Living – the ultimate of quality living with only 421 units available together with 100% parking space on a prime site right across Shrewsbury International School Bangkok Riverside Campus and only 5 minutes from the heart of Sathorn
WELCOME TO THE LUXURY GATED COMMUNITY scheduled for 28 - 29 January with real space ready for public view together with new sample units on real building with real view
Special offer for customers who register for advance appointment includes up to Bht 600,000 of discount for City View Condo 1- Bedroom Plus with 43.5 square metres starting at Bht 29 million and Chao Phraya River Curve Condo 2 – Bedroom with 102 square metres starting at Bht 17.5 million
Bangkok (27 Jan 2023) – Ms. Kamolthip Bumrungchatudom, Chief Condominium Business Group, AP Thailand Public Co., Ltd., said that her company is committed to operating with the promise of giving “Cheevit Dee Dee Tee Lueak Eng Dai” to customers through design and service innovations while helping elevate living quality to bring to life quality society full of ideals. She said AP Thailand is now ready to unveil its newest flagship ready-to-move-in luxury condominium – its first of 2023. Called RHYTHM Charoenkrung Pavillion, it is a city-centre condominium development overlooking the Chao Phraya river curve. Valued at Bht 4,800 million, the condominium is 17th joint venture project between AP Thailand Public Co., Ltd., and Mitsubishi Estate Residence Co., Ltd., (a company of Mitsubishi Estate Group). It is located on a prime area by Charoenkrung Road.
RHYTHM Charoenkrung Pavillion is the first and only ready-to-move-in development around Charoenkrung to introduce Co-Generations Living – a living trend popular with modern urbanites characterized by people of multiple generations living together – in the design of its common area under The Luxury Gated Community concept to ensure that every life grows together in a safe self-sufficient community where every space is designed to accommodate overlapping needs of residents – be they families with children or single individuals, which requires a balance of lifestyles. The company is confident that RHYTHM Charoenkrung Pavillion will become a new iconic landmark that is different and the best on Charoenkrung considering 3 outstanding features, which are:
The First LUXURY GATED Condominium
Attention was paid to every minute detail of the community’s 3.5-rai common area. The focus is on meeting the modern lifestyle needs where all generations live together in one place. Maximum balance is struck between privacy and security, especially for small children. There is a clear separation between The Pavillion and The Living Quarter. Function is divided for family use and private use in The Pavillion, which consists of 3 clear-glass buildings complete with well-balanced functional areas for families and individuals. They include Study Pavillion for group and individual learning activities, Social Pavillion for exclusive parties and Reading Pavillion which provides a quiet place suitable for book reading in private. The massive panes of clear glass are open to natural lighting and greenery views of giant rain trees and oxygen-producing flora of the Gated Courtyard serving to elevate the quality of living at the heart of the city in a habitat close to nature – an ingredient for great physical and mental health every day. There is an area for free play where small children can run around freely within the safe sight and there’s a special pathway linking directly to the living quarter offering superior experiences with maximum privacy.
The Exclusive Private Retreat
Relaxing in the midst of city views and the Chao Phraya river curve in fresh, beautiful angles provides the ultimate of aesthetics in relaxation in a high-rise condominium right at the heart of the city overlooking the Chao Phraya river curve. It comes complete with all the facilities to meet all the needs of the residents. Of special note is the Sky Facilities on Floor 42 – 44 with spaces provided for indoor and outdoor activities for a great mix of privacy and functionality for multiple generations of residents ensuring “quality time in co-living space” for everyone. For example, Sky Lounge provides a space for throwing exclusive parties Sky Terrace offers a relaxing corner with a spectacular view of the Chao Phraya river curve
Play Space lets small children play within a comfortable sight of their guardians. And the highlight of all facilities is Infinity Edge Pool. This salt-water swimming pool spans 47 metres long. It provides one of the most beautiful panoramic views of the Chao Phraya River. Kid Pool is designed to be clearly separate from adult’s deep-water section. There are also Sky Gym, Private Gym and Personal Training to support trending physical activity – all of them come complete with a full range of equipment from leading brands.
The Best Quality Living
The ultimate of quality living and privacy is assured with the project having only 421 units available. All units in RHYTHM Charoenkrung Pavillion are complete with massive functionality. Areas and zoning are allocated to keep all residents happy together with an interesting mix of privacy and co-living. All functions are connected from a large flexible living room to a multi-purpose room, an open kitchen, a spacious terrace and a large bedroom with built-in water closet. The resident can relax with beautiful panoramic city or Chao Phraya river views on the site just across Shrewsbury International School Bangkok Riverside Campus, within a few steps of walk and only 5 minutes away from the heart of Sathorn.
“RHYTHM Charoenkrung Pavillion stands out with Timeless Design architecture, simple yet powerful. Given its unique design coupled with our great management of the 3.5-rai common area for complete, ideal functionality as well as the units being designed with attention to ideal all-generation living as the first and only place in the same area, we are confident that RHYTHM Charoenkrung Pavillion will be a new iconic landmark and the ultimate of AP Thailand’s highlight condominium we are ready to deliver as our first development this year and that it will instantly attract an interest from prospective customers in and around Charoenkrung,” added Ms. Kamolthip.
RHYTHM Charoenkrung Pavillion ready-to-move-in luxury condo at the heart of the city overlooking the Chao Phraya river curve is the only development around Charoenkrung to offer a full package of living quality with attention to designing a community for optimum privacy and security. AP Thailand is ready to deliver quality time within quality space to its customers and is scheduled to hold the WELCOME TO THE LUXURY GATED COMMUNITY event on 28 – 29 January where the real space of sample units on the real building with real view will be open to the public for the first time. Customers who register for advance appointment are eligible for up to Bht 600,000 of discount for City View Condo 1- Bedroom Plus with 43.5 square metres starting at Bht 7.29 million and Chao Phraya River Curve Condo 2 – Bedroom with 102 with square metres starting at Bht 17.5 million. To register for appointment to visit the project, go to https://bit.ly/RhythmCharoenkrung or call 1623.
“AP Thailand – Cheevit Dee Dee Tee Lueak Eng Dai”
New ready-to-move-in luxury condo at the heart of the city overlooking Chao Phraya river curve.
Bangkok is the most visited city in the world and attracted as many as 30 million travelers in 2023. Foreign investors have poured in, particularly from countries and regions like Hong Kong, mainland China, and Singapore, driving up prices.
If you have visited Bangkok a few times and aren’t sure about where you should buy real estate, you have come to the right place. In this article, we list the neighborhoods, the most interesting areas to buy, and finally, explain briefly about the most luxurious areas.
Neighborhoods in Bangkok
Bangkok is the home of dozens of neighborhoods that can be further broken down into smaller areas. Below you can find a partial list of the neighborhoods and that you can found on Wikipedia:
Bang Kapi
Bang Sue
Chatuchak
Don Mueang
Dusit
Pathum Wan
Phetchaburi
Phra Nakhon
Pom Prap Sattru Phai
Ratchadaphisek or Ratchada
Sathorn
Si Lom
Sri Nakarin
Sukhumvit
Thon Buri
Victory Monument
Wang Burapha
Yaowarat
The areas we will focus on in this article are located in the central areas of Bangkok and include Sukhumvit, Pathum Wan, and Silom. Sukhumvit, in particular, attracts plenty of overseas investors who are bullish on the Thai market.
Over the years, other areas have started to gain more interest among property buyers.
While travelers and investors have targeted the most central areas, like Asoke, Thong Lor, and Phrom Phong, we see increased activity further away along the BTS lines.
Where should I buy property in Bangkok?
Below we have listed some of the best areas to buy real estate in Bangkok, depending on if you want to buy as an investor, for leisure purposes, or if you seek exclusivity.
Let’s start with one of the most sought after and famous locations in Bangkok.
Asoke
Asoke is part of the CBD in Bangkok and thrives thanks to its importance as a transportation junction. It’s the home of the BTS/ MRT Mass Transit interchange, which increases the foot traffic and retailing opportunities.
Thanks to its strategic location, Asoke is the home to many multinationals’ head offices in the region. Yet, there are plenty of restaurants and cafes in abundance as well.
Despite being one of the most developed areas in Bangkok, Asoke continues to transform through various mixed-use developments, including the Singha Complex and The Parq on the Rama 4 section.
Phrom Phong
Phrom Phon is located in proximity to Asoke and you can reach the area on foot. It’s primarily known for being one of the best locations to buy lifestyle properties, thanks to its more laid-back atmosphere compared to Asoke.
You can find plenty of bars, restaurants, but also Emporium, a luxury shopping mall located in Khlong Toei.
The area is one of the most popular shopping and leisure hubs with a wide selection of condominium projects.
As Sukhumvit continues to be the most popular area among foreign buyers, Phrom Phong will undoubtedly be a great location for property buyers down the road.
On Nut
On Nut is located next to Phra Khanong and has developed from being a somewhat sleepy neighborhood to becoming one of the most promising investment destinations.
Here, you can find plenty of quality condominiums built by internationally recognized developers such as Sansiri, Ananda Development, and AP Thailand. Units are still comparably affordable, offering high rental yields for investors.
It’s not rare that units can yield as much as 5% – 7%.
A benefit of living in On Nut is that the neighborhood is tranquil and with many development opportunities. You won’t be far away from the city center that you’ll conveniently reach within 10-15 minutes by taking the BTS.
W-Market is a popular food market located in Phra Khanonh and with short walking distance of projects like The Base in On Nut.
Here, you’ll find both foreigners and locals that enjoy an easy night out or just continue to some of the more central districts later.
The area around On Nut BTS station is also worth visiting thanks to the many restaurants, supermarkets, and bars.
Ploenchit
Ploenchit is the home of many foreign embassies and you’ll also find some of the most expensive land deals being signed here.
It offers a more peaceful and formal environment compared to the above-mentioned areas and is sometimes referred to as the embassy quarters. Yet, there are plenty of restaurants, a luxury mall, and bars here.
Ploenchit should be on your radar if you have a high budget and look for a more luxurious living environment.
Silom & Sathorn
Silom is located close to Sathorn, Bangkok’s financial district, and one of the oldest and most established parts. Multinationals such as JP Morgan and local banks like Bangkok Bank can all be found here.
Silom is truly in the upper-scale and prices set thereafter. It’s also one of the more established and older parts of central Bangkok.
Despite having plenty of restaurants, posh bars, and hotels, Silom is also known for lacking some of the local and cultural atmospheres that can be found around Sukhumvit.
That said, every area comes with benefits and disadvantages and Silom still makes it into this list.
The Most Premium Areas in Bangkok
A question many people ask is “Where do the rich live in Bangkok?”. The city is different from many Western cities in the sense that there can be great wealth disparities within small areas.
With that said, the following areas are the most expensive in terms of land prices and you can find a high concentration of wealthy people living here:
Sukhumvit
Sukhumvit has the highest concentration of bars, restaurants, malls, and other amenities, and real estate prices are particularly high in the following areas:
Nana
Asoke
Phrom Phong
Thong Lor
Thong Lor has become a particularly interesting area in the past years and where prices have skyrocketed. It’s not strange, as it offers a diverse segment of restaurants, bars, and resembles that of Soho in London.
Wireless- Lumpini
Ploenchit
Chidlom
Ratchadamri
Silom / Sathon
Silom
Chong Nonsi
What are the most expensive condominiums in Bangkok?
Condominium prices have escalated in Bangkok and units sometimes fetch hundreds of thousands of Thai Baht.
You can also find ultra-luxurious units that cost millions of US dollars. Below I’ve tried to capture some of the most notable ones.
The Residences at Mandarin Oriental Bangkok
This is one of the most luxurious riverside hotel-managed condominium projects. This ultra-luxury condominium project was developed by The ICONSIAM Superlux Residences and managed by Mandarin Oriental.
There are numerous super luxurious facilities and amenities nearby, including The peninsula Bangkok and Millenium Hilton Hotel. It’s even said that a BTS Gold Line was built specifically for the project, even if some claim this is false.
Thailand's tourism sector has rebounded with positive sentiments, as it is projected to receive 25-30 million international tourists in 2023, injecting 1.5 trillion baht (US$43.5 billion) into the economy.
During 'The Future of Thai tourism after Covid-19: A new era begins' briefing at the Foreign Correspondents Club of Thailand in Bangkok earlier this week, Chattan Kunjara Na Ayudhya, deputy governor for marketing communications at the Tourism Authority of Thailand (TAT), provided insights into the country's recent tourism performance.
Thailand’s top performing markets
Malaysia, Thailand’s southern neighbour, remains the top visitor source market with nearly 2.4 million visitors in the first seven months of 2023, of which overland tourists make up a significant chunk.
China, which was the top source market for Thailand with 11 million visitors in 2019, is currently ranked second with nearly 1.8 million visitors to date. The return of China visitors hasn’t been as quickly as anticipated, Chattan admitted, although the recovery momentum for the Chinese market has been picking up in latter months.
South Korea is in third spot with approximately 866,747 visitors to date and has “exceeded expectations”, on its way to surpassing previous records, according to the TAT executive.
India stands in fourth place with about 858,843 visitors to Thailand to date, and flight connections with the destination are gradually recovering.
Russia, in fifth place, remains a major market for Thailand, particularly during the winter months when arrivals soar. So far, over 840,128 Russian visitors have travelled to the country.
Despite seeing a downturn in arrival numbers from Japan, TAT does not plan to reduce resources or interest in Japan as a visitor source market. Instead, TAT aims to “address the imbalance” by maintaining a strong presence in the Japanese market.
Deeper, wider push into emerging markets
To increase Thailand's resilience in the face of unexpected crises, TAT has pursued a market diversification strategy. This includes exploring emerging markets in Europe, such as Poland, Czech Republic, Romania, and Bulgaria. Additionally, countries like Uzbekistan and Kazakhstan have been targeted through roadshows.
Saudi Arabia has emerged as a "superstar" market for Thailand, with arrivals increasing significantly from 30,000 a year previously to 100,000 in 2022, following the normalisation of bilateral relations between the two countries last year. The number is projected to grow even higher in 2023, and TAT is setting up a promotion office in Riyadh to further enhance this growth.
Amazing Thailand keeps giving
For 2024, Thailand is targeting 35 million international visitors and 1.92 trillion baht (US$56 billion) in tourism revenue. The domestic sector is projected to see around 200 million domestic trips and 1.08 trillion baht (US$31.5 billion).
Looking ahead, TAT aims to focus on creating valuable experiences for visitors, with a greater emphasis on growing visitor spend rather than just visitor numbers. To mitigate overtourism, certain popular destinations will have limitations put in place, and some islands may be closed for certain periods.
TAT will continue to maintain the "Amazing Thailand" brand, and the NTO will adopt a deeper segmentation strategy, targeting specific segments like Chinese couples, Indian weddings, business travellers, workationers, digital nomads, and health and beauty travellers.
The outlook for 2023 economically and for the Thai real estate market continues to be promising. With Covid-19 in the past, generally speaking, businesses and people are no longer engrossed and distracted by the pandemic.
Tourist numbers rebounded in 2022, and in the first half of this year, Thailand welcomed over 11 million international visitors. The Tourism Authority of Thailand has increased its 2023 forecast to 23 million and 30-35 million in 2024.
The Bank of Thailand's GDP growth is 3.6% for 2023, and statistics indicate six consecutive periods of expansion. The growth trend in tourism positively impacts many industry sectors, including real estate. These and other factors are helping to drive the economy and consumer confidence.
Conversely, although trends signify recovery, some factors may hamper growth. The tightening of lending due to persistent high household debt and the rising interest rates may hinder consumer spending. The REIC fourth quarter of 2022 statistics indicate a 5.6% increase YOY in the construction price for standard homes, spurred by increased materials, energy and labour costs.
Furthermore, the ongoing Russia and Ukraine crisis, China and Taiwan tensions, the decline in exports and the uncertainty following Thailand's May 2023 general election may impede progress.
Property Market
The property market in the post-pandemic era has altered. People's expectations have changed slightly, too, with a focus on an improved work-life balance and health and well-being. This has led to a shift in housing requirements.
Trends indicate some domestic buyers prefer low-rise, less than eight-floor buildings with more space and adaptable areas. Working and studying at home, even one or two days a week, has become more common. Subsequently, residential designs with an office or spare room or buildings with co-working spaces have become increasingly sought after.
The pandemic also led many people to adopt a healthier lifestyle with more exercise, relaxation, improved diet, etc. Savvy developers have been watching this space and designing projects with a range of facilities to suit an active lifestyle.
Additionally, many consumers are concerned about climate change, therefore choosing housing with green credentials to reduce their carbon footprint and save energy and other costs. Such developments are expected to increase market value more than non-green buildings.
Downtown Condo Market
New downtown condos slowed considerably during 2020 and 2021. Even in 2022, less than 70% of the pre-Covid numbers were launched. In 2023, the forecast is approximately 7,000, still some way off the 2019 launches of about 12,000 units.
According to a recent Bangkok Post article, the 2023 new launches are unlikely to be priced higher than existing inventory, as developers still need to move older stock. In essence, developers are reducing their profit margin to absorb increased costs in development and construction.
Considering the resale market, some owner occupiers and investors are attracted to older condos, often with more space than newer builds. Renovating and refurbishing such condos can provide more room and flexibility for individuals and families.
Midtown and Suburban Condo Market
The midtown and suburban condo market also suffered during the pandemic, particularly in 2020 and 2021. However, it bounced back more quickly in 2022, with almost 50,000 new launches, nearly reaching 2019 new benchmarks. This market recovered more quickly than downtown condo launches, potentially spurred on by more affordable prices for domestic buyers.
Many of the new projects feature a mix of residential and commercial. Developers are creating more imaginative designs maximising space and functionality. Co-working areas and shared recreational facilities like fitness centres, swimming pools, saunas, onsens, rooftop spaces and gardens are being incorporated.
Low-Rise Housing Market
This market segment has not suffered like the condo market, with a dip pre-Covid in 2019, continuing in 2020 and 2021. In 2022, new launches were almost 35,000, almost reaching the 2018 level.
Perhaps the most significant change is the growth in luxury and super-luxury housing, with 2022 super-luxury launches exceeding the previous seven years.
Alternate Locations
Research by Krunsgsri shows a strong demand for condo high-rise housing in provinces heavily dependent on tourism, including Phuket, Chiang Mai and Chonburi. Many foreigners buy condos to live or holiday in Thailand or as an investment to place into the rental pool. However, it isn't just foreigners. Many Thais are looking further afield, away from the more expensive Bangkok market.
Developers in some of the more populous provinces are also building affordable condo projects, particularly in Khon Kaen and Rayong.
If you are considering investing or becoming an owner-occupier, selling, or renting a property in Thailand. In that case, Lazudi is a real estate expert with offices throughout Thailand. Contact us today.
Thai developers are urging the newly-formed government to provide special interest rates for first-time buyers as residential properties and interest rates are skyrocketing.
Housing units are increasing partly due to a 30-50% spike in land, construction, and wage costs. The minimum wage is also likely to increase due to the new scheme by the political parties likely to form a government, which could increase up to 600 baht per day.
REIC's acting director general Vichai Viratkapan added that the new low-rise houses price index that is available for sale in Greater Bangkok also rose from 128.3 to 129.7 in the second quarter. These increases were specifically for low-rise houses in projects launched in 2021-2022.
The price index for new low-rise houses in Bangkok went up 1.9% year-on-year and 1% year-on-year in Nonthaburi, Pathum Thani, and Samut Prakan. As for single detached houses, it went up 2.5% year-on-year and up by 0.8% year-on-year for townhouses.
However, salaries are only increasing by 5% per year, and as a result, it decreases Thai people's purchasing power for new homes. According to Mr Saenphin Sukhee, ways that would reduce the home instalment payment issues for first-time buyers would require the new government to introduce a special interest rate. The Bank of Thailand (BOT) should also help to initiate commercial banks' flexibility in granting home loans. Another possible alternative would be tax deductions.
