This year, the Thai property market is showing signs of recovery in horizontal and condominium properties amid an improving pandemic situation.
According to the Economic Intelligence Center (EIC), ownership transfer rates for detached and semi-detached houses in Bangkok and its environs from January to February have seen a noticeable improvement. However, prices for condominium units continued to contract.
The property transfer rate is a key indicator of housing market activity. More new housing has appeared in the first four months of this year, for both single-family homes and condominiums, a welcome development since the recession began in 2019.
The overall housing market in remote provinces has also improved, but remains held back by the limited purchasing power of domestic customers as well as the fluctuating purchasing power of foreign customers. The home ownership transfer rate in remote provinces has been on the rise, but remains well below pre-pandemic levels.
The EIC predicts that the horizontal housing market still has room for growth this year, driven by demand from middle-income earners who have been impacted by the economic downturn. He also noted that the pandemic has pushed customers to buy larger homes, leading to better performance in the single-detached home market. Similarly, twin homes have grown in popularity among middle-income people who value value, function, and extra space.
Townhouses have also caught the eye of those who want privacy but cannot afford detached or semi-detached homes.
Additionally, the EIC said the condominium segment is showing signs of recovery as more existing units find buyers, delayed projects resume construction and new projects are launched. (NNT)