Bangkok Property Market Bounces Back
Posted on 21. Apr, 2014 by Author035 in General
Through January and February, Bangkok’s property market was hindered by political issues within the city. A slowdown hit all kinds of property; commercial, residential and investment. However, forecasts for growth are now optimistic as foreign investors continue to show interest and new projects enter development.
Even the two months during the slowdown saw the launch of thousands of new condominium units. Altogether, these numbered approximately 5,880 with the majority (73.5%) located in suburban areas. Most of these were aimed at the middle or lower sections of the market. However, no such new units were launched in the inner city as a result of the shutdown, and road blockages caused construction on some projects to grind to a halt.
January and February also saw low take-up of new projects, with the rate averaging at just 40%. This is believed to be due to the impact of the political turmoil on buyer sentiment and job security. Furthermore, some of the complications associated with the political climate led developers to significantly lower the amount of marketing they put into projects, further affecting the take-up rate.
Prices of new condominium developments remain little changed since last year, largely due to an effort from developers to drive sales. It seems that these efforts may be working and contributing to a recovery of the property market. Following on from the turmoil of January and February, many developers have now said that sales are higher than forecast after events such as the House and Condo Show in March. Emerging markets in the areas surrounding Bangkok also having an impact, including property for sale in Phuket.
Retail property in Bangkok also suffered as a result of the protests and political turmoil. However, now that the rallies have moved from the streets buyers are beginning to return and the market is once again climbing. During the two months at the start of the year, more than 50,000 square metres of space were opened.
The hotel and tourist property market is also bouncing back from the problems. While the shutdown was in effect, an estimated 350,000 international visitors to Thailand cancelled their visit. Others decided to visit other destinations within (like to research property for sale in Pattaya for example)Thailand rather than come to Bangkok. This certainly impacted on related property markets. Hotel occupancy stood at just 20-30%, but things are now set to start recovering. Hotel operators remain confident, and government agencies forecast that the year will see similar or even higher numbers of tourists when compared to 2013.
Regarding property investment in Bangkok, both domestic and foreign investors continue to show interest. Now that the worst of the political issues are over this is on the increase. Land enquiries are particularly strong, and interest is largely focussed on the core of Bangkok close to its extensive travel links.
Property markets throughout Thailand, particularly in Bangkok, have shown a trend of strong and consistent growth over recent years. It is hoped that this should not be seriously affected in the long run by political instability, and the area remains attractive to investors.