Bangkok’s real estate market is still recovering from the slowdown due to the pandemic.
After years of several project launches and a major construction drive, the market slowed down.
Bangkok’s real estate market, with a recovering Thai economy but with the possibility of a global recession, spooked developers and investors.
Economic conditions are improving but are not the only factors. The strong Baht, a property supply oversupply and the Bank of Thailand’s stringent new rules on mortgage approval have had an effect on the property market at large.
Also, the Thai Government’s “New Land and Building Tax”, that aims to reduce income disparity, has come into effect. This new legislation imposes taxes on the landlords and holding companies that are monopolizing the supply of property and land, especially in Bangkok.
Less speculators, more contrarians
Are there any real estate investment opportunities left? Yes, for sure.
Since the end of last year, Fresh Property has experienced an increase in “contrarian investors”. These individuals pride themselves in “bargain hunting” for attractively discounted property, in what they perceive as a depressed market.
A correction is underway, and landlords and developers are taking a realistic view on the sales price of their properties, with some accepting lower profits. Discounts are available on anything from unsold developed stock, off-plan resale contracts to second-hand condos.
Amazing deals are now available for investors willing to move fast and take risks.
Some property sellers accepting reduced profits
Fresh Property is a modern real estate agency with a good understanding of the macroeconomic market conditions.
So far we have not experienced many motivated sellers with “negative equity or debt repayment issues”.
The 3 main profiles of motivated sellers seem to be as follows
Real Estate Portfolio Rebalancing
Many sellers are simply taking a conservative approach and reducing their level of financing. Many landlords are accepting to take reduced profits for their properties, consolidating equity in their more profitable units.
International buyers offloading
In recent years, property purchases by international investors especially from countries such as Hong Kong and Mainland China have continued to grow.
For these investors, buying a property in Bangkok was a speculative bet to try and capitalise on fast profits rather than a long-term investment. Some speculators have decided to off-load and move-on.
Expats selling
Another type of sellers are expats that decided to leave the country. They prefer to sell their units fast, rather than have the hassle of managing a rental investment from overseas.
Examples of the types of hot deals currently on the market
Completed and Transferred Deals
Ideo Sukhumvit 115 A functional and well-presented studio sold at 1.99 MTHB.
sWaterford Diamond A spacious 2- Bed Condo offering 63 sqm. sold at 4.3 MTHB.
Hot investments that still Available
The Base Park East 77 A modern and comfortable 1-bed at 2.55 MTHB.
Supalai Place 39 A spacious and cozy 2-bed condo at 6.3 MTHB.
Investment opportunities for risk takers
The reduced price by sellers is creating a unique investment environment.
Discounted real estate is an opportunity that savvy investors could potentially use to their advantage. As “cheaper” condos offer the benefit of higher rental yields and higher resale profits.
