by Daryl Lum | Jan 25, 2024 | Bangkok Property Market Updates, Developer Watch, Investment Analysis
The real estate landscape in Bangkok is witnessing a notable shift in condominium prices. Lower Sukhumvit has emerged as the focal point of a substantial surge in prices, contributing to the overall upward trajectory in the city. In contrast, neighboring provinces are grappling with a decline in prices, primarily attributed to an excess of unsold units.
Vichai Viratkapan, the acting director-general of the Real Estate Information Centre (REIC), recently highlighted a consistent year-on-year increase in the price index of new condominium units in Bangkok. This trend has persisted over the past four quarters, commencing in the first quarter of 2023. According to Viratkapan, the condo price index in Bangkok is unequivocally on an upward trend, with lower Sukhumvit leading the way in the 7.51-10 million baht per unit price range.
Beyond lower Sukhumvit, other areas such as Thon Buri and the Lat Phrao-Wang Thong Lang-Bang Kapi zone have experienced notable increases, specifically in the 3.01-5 million baht price range.
In the Greater Bangkok region, which encompasses Bangkok, Nonthaburi, and Samut Prakarn, the price index for new condo units saw a 2.7% rise to 154.3 in the fourth quarter of 2023 compared to the same period in 2022. The primary impetus behind this increase was the 3.5% rise in the price index within Bangkok, reaching 157.3. However, it’s worth noting a marginal 0.5% decrease from the third quarter, attributed to a strategic decline in response to developers implementing year-end sales campaigns.
Viratkapan also pointed out a consistent year-on-year decline in the price index of condo units in Bangkok’s neighboring provinces, Samut Prakan and Nonthaburi. This decline, observed over five consecutive quarters since the fourth quarter of 2022, is largely attributed to a surplus of unsold units from projects initiated before 2021. The maintenance of construction costs based on earlier material and labor rates prompted developers to respond with discounts and campaigns, constituting 71.5% of the sales strategy in the fourth quarter of 2023.
According to REIS, the condo price index in Samut Prakan and Nonthaburi for the fourth quarter of 2023 was 141.2, reflecting a 0.9% year-on-year decrease and a 0.2% decrease from the third quarter of 2023.
In conclusion, Viratkapan highlighted, “The condo price index in these two provinces continues to decline due to consecutive year-on-year decreases over five quarters, from the fourth quarter of 2021 to the fourth quarter of 2022.” Notably, Muang Samut Prakan-Phra Pradaeng-Phra Samut Chedi, Muang Nonthaburi-Pak Kret, and the Bang Phli-Bang Bo-Bang Sao Thing zone have witnessed the most significant decreases, characterized by high competition and a notable inventory of unsold units in the 1.01-1.5 million baht, 2.01-3 million baht, and 2.01-3 million baht price ranges, respectively.
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by Daryl Lum | Jan 5, 2024 | Bangkok Property Market Updates, Expat Living & Relocation
Thailand is poised to achieve its target of welcoming 28 million foreign tourists in 2023, with a notable increase in visitors from neighboring Malaysia compensating for a sluggish recovery in the Chinese market, which was the primary source of inbound travellers before the onset of the Covid-19 pandemic.
Year-to-date, total arrivals have surpassed 25 million, with the number of Malaysian travellers more than doubling compared to last year, reaching four million, as reported by the Ministry of Tourism and Sports. Although approximately 3.1 million Chinese holidaymakers have visited Thailand this year, securing the second position and demonstrating growth from 273,567 in 2022, this year’s figure is anticipated to fall short of the official target of four million to 4.4 million, according to available data.
The Tourism Authority of Thailand envisions a continued recovery with 35 million visitors expected next year, including 8.2 million from China.
However, achieving this target appears ambitious in light of this year’s disappointing Chinese tourist numbers, as noted by Krungsri Securities. Instead, total tourist arrivals are projected to reach 33 million in 2024, attributed to a slower increase in Chinese visitors amid economic challenges in their home country, according to analyst Sirilak Konwai’s report.
Thailand’s Prime Minister Srettha Thavisin is banking on tourism to drive the nation’s economic growth, given that the sector contributes about 12 per cent to the gross domestic product and nearly a fifth of the jobs. The government has implemented temporary visa waivers for travellers from China, Russia, Kazakhstan, India, and Taiwan. Additionally, airlines have been instructed to expand routes and airport operations have been streamlined to reduce waiting times for visitors.
In 2019, the country witnessed a record influx of foreign arrivals, reaching almost 40 million, generating 1.91 trillion baht (SGD 72.9 billion) in revenue. During that year, each tourist spent an average of 47,895 baht during their nine-day trip, according to official data. This year, Thailand has generated 1.07 trillion baht from tourism.
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by Daryl Lum | Jan 2, 2024 | Bangkok Property Market Updates, Expat Living & Relocation
Thailand and China are set to establish a permanent visa waiver for each other’s citizens starting in March, as announced by Thai Prime Minister Srettha Thavisin on Tuesday (Jan 2).
As the second-largest economy in Southeast Asia, heavily reliant on tourism, Thailand had previously lifted entry requirements for Chinese tourists until February of the current year. Prime Minister Srettha highlighted that this move will strengthen the bilateral relationship between the two nations.
China’s Ministry of Foreign Affairs stated that both countries are intensifying people-to-people exchanges through the reciprocal exemption of visa requirements. Ministry spokesperson Wang Wenbin conveyed during a regular briefing that authorities from both sides are in close communication, eagerly anticipating the implementation of the agreed-upon arrangement.
In 2023, Thailand surpassed its target by welcoming 28 million foreign tourists, generating a revenue of 1.2 trillion baht (USD 34.93 billion), according to government data. Malaysia was the primary source market with 4.5 million visitors, followed by 3.5 million arrivals from China. This performance, although slightly below the pre-COVID record of 39 million arrivals with 11 million from China, underscores the significance of international tourism for Thailand’s economy.
