The last 2 years have been difficult for everyone due to the COVID-19 pandemic. However, now the Capital’s real estate professionals are optimistic as the market is recovering and Thailand is open again, attracting investors, tourists, and homebuyers.

After tough times, and a real estate market that was hit hard, everything is starting to go back to normal, keeping in mind that we have a new normal.

Developers are starting to get active again. There is an influx of foreigners and the locals are trying to go back to their new normal lives. These are great news not only for Thailand but also for its dynamic real estate market.

5 Big trends that emerged in Bangkok’s real estate market

1. Central Bangkok rentals are still recovering

Bangkok’s local economy is reliant on tourism, and the decline in visitors including investors in the past 2 years had a negative effect in the Capital.

This had a direct and indirect impact on local employment, with the transient population of Expat residents at a low compared to 2018/19.

This created knock-on effect on Central Bangkok’s rental market, which has been a foreigner-led market. Bangkok’s downtown luxury condos that previously had no issues finding tenants are currently looking pricey in a period where most households are looking to save on expenses.

The reduced Expat rental demand, forced prices down as there is a plentiful supply. Landlords have had to change rental rates and this has caused a price readjustment across several neighborhoods and projects in the Central Business District.

2. Fewer new condo launches

Flagship projects launches in Central Bangkok by the Capital’s leading developers, slowed down, with most of the established developers like AP (Thai), Ananda and Sansiri choosing to clear their existing stock of previously newly-completed projects.

This is not surprising since foreign demand from major international markets such as China and Hong Kong have still not recovered to the previous highs of 2018-19. As for the Thai market, buyers seem to have temporarily shifted their focus away from downtown condominiums.

3. Developers focusing on low-rise housing

The Thai market’s enthusiasm for condos has temporarily slowed down, with many homebuyers opting for new housing developments with large interiors and outdoor space, usually located in Outer Bangkok.

This trend combined with the tough economic conditions for the last 2 years, has made developers refocus their development pipeline. Several of them announced that they will focus on the launch of low-rise house and townhouse projects, at least for now as most likely when there is more economic recovery, developers could change their focus again.

4. Thai buyers grabbing resale opportunities

In the same way rental rates declined, the resale market has also experienced a correction. The once lofty expectations of sellers on the secondary condo market has become more realistic and in line with the current market conditions. This downward shift in prices has caught the attention of Thai bargain hunters, investors and especially homebuyers.

Traditionally, Thai buyers have always had a preference for new projects, with resale condos being a less popular option. However, the adjustment in selling prices has made buyers re-evaluate their perceptions. With many currently finding attractive buying opportunities in good quality projects and desirable downtown locations.

5. Hoping for a full recovery in 2022-23

As the economic recovery outlook looks good, the Capital’s real state market is more confident. Large developers are active again and we have seen a number of new project launches. Great news for Bangkok.

With the country’s vaccination program fully in place and the reopening of country, will soon reinvigorate the real estate market.

What’s next for investors, developers and real estate agents?

As a Real Estate Agency, Fresh Property’s business has been incredibly affected by the current situation. The company has experienced a big drop in inquiry levels, new client registrations and volume of completed rental / sales deals. Despite this, our company believes it is important to take some perspective on the current situation.

As the saying goes “buy on the sound of cannons, sell on the sound of trumpets”, investors should take note of the fact that Bangkok’s real estate market is offering appealing investment opportunities. Real estate is all about “buying low, selling high” and the current market correction is offering potential investors an attractive entry point.

The road ahead will most probably be a bumpy marathon for both developers and real estate agencies. However, the serious players in the industry have always understood that real estate is cyclical in nature and affected by the “roller coaster” of economic cycles.

While the boom times are always more fun, this lull in residential activity is giving Bangkok’s property market some time to breathe and stabilize, after over 5 years of uninterrupted growth.

Fresh Property firmly believes that there is opportunity in chaos, the companies and investors that are able to adapt to the “new normal” and survive will be the big winners in the long run.

Let us all hope for a speedy recovery.

Fresh Property is a full-scope and established Bangkok Real Estate Agency. We offer consultancy, sales, rental and property management services.

Buyers and renters are welcome to browse our extensive portfolio of new projects, resale properties and rental homes.

Alternatively, feel free to contact us by sending us an inquiry to [email protected].