by wilbersuen | Oct 7, 2024 | News
Sales of second-hand condos in Thailand’s Eastern Economic Corridor (EEC) are performing well.
According to the Real Estate Information Center (REIC), the number of second-hand condo transfers in the EEC provinces increased in the second quarter of 2024 compared to both new condos and new and second-hand low-rise houses, with the majority of activity focused on units priced below 5 million baht.
Siddhipen Siddharthapong, acting assistant director-general, stated that this trend indicates a limited budget among homebuyers in Chon Buri, Rayong, and Chachoengsao, driven by a sluggish economy.
“When the economy slows, second-hand homes often perform better in the market due to their lower prices compared to new units and more desirable locations,” she explained.
“Second-hand condos are more appealing than second-hand low-rise houses, as potential buyers either cannot afford the latter or find that similarly priced options are too far from their workplaces.”
REIC’s data shows that second-hand residential unit transfers in Chon Buri, Rayong, and Chachoengsao amounted to 12,033 units valued at 29.5 billion baht in the second quarter of 2024, a decline from 12,532 units worth 32.8 billion baht in the same period last year.
The most significant drop was seen in low-rise houses, with transfers falling to 8,390 units worth 21.1 billion baht, representing declines of 5.2% in units and 6.3% in value, compared to 8,846 units worth 22.5 billion baht previously.
Condo transfers by unit number fell slightly by 1.2% to 3,643 units from 3,686 units, but the value declined more sharply, decreasing by 18.3% to 8.36 billion baht from 10.2 billion baht.
This indicates that while demand remains robust, buyers are focusing on lower-priced units.
Among categories, only second-hand condos saw an increase, rising 17.7%, whereas new condos, new low-rise houses, and second-hand low-rise houses recorded declines of 14.8%, 6.1%, and 4.5%, respectively.
In terms of pricing, new condos priced below 1.5 million baht were the only segment to experience year-on-year growth, with units below 1 million baht increasing by 35.1%, and those priced between 1 and 1.5 million baht rising by 13.9%.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | Oct 2, 2024 | News
The share of pre-owned home transfers in Greater Bangkok has increased for two consecutive quarters, driven by weakened purchasing power due to the economic slowdown, according to the Real Estate Information Center (REIC).
Siddhipen Siddharthapong, acting assistant director-general of the REIC, noted that many homebuyers, particularly in the lower-end market segment, were unable to find homes at their desired price points, leading them to choose more affordable alternatives.
“Pre-owned homes are generally priced lower than new ones of similar size and location,” she stated.
“Given the high household debt and interest rates, many homebuyers are opting for more cost-effective second-hand properties.”
As per the REIC, 21,504 low-rise houses in Greater Bangkok were transferred in the second quarter of 2024, with a total value of 93.2 billion baht—representing a year-on-year decline of 13.5% in volume and 5.6% in value.
The largest decreases were seen in homes transferred by companies, which the REIC considers new homes, with the number of units dropping by 22.5% to 9,087, and value falling by 7.8% to 56.9 billion baht.
Meanwhile, transfers of homes by individuals, categorized as pre-owned homes, declined by 5.5% to 12,417 units, with the value falling by 1.9% to 36.3 billion baht.
The proportion of transferred pre-owned low-rise houses rose to 57.8% in Q2 2024, up from 57.3% in Q1 and 53% in Q4 2023.
For unit sales, the largest increase during the period was seen in units priced over 100 million baht and those between 80-100 million baht, rising by 300% and 150% to four and ten units, respectively. Both categories comprised new homes.
For the pre-owned segment, homes priced above 100 million baht saw the highest year-on-year growth, increasing by 125% to nine units.
Among new homes priced below 80 million baht, units priced between 20-60 million baht increased, while other price categories declined, with units below 1 million baht experiencing the sharpest decline, down 47.2%.
For pre-owned properties, units priced below 3 million baht, between 7.5-10 million baht, and between 20-60 million baht also saw a year-on-year decrease.
According to the REIC, transfers of low-rise housing better reflect market trends than condominiums, as these involve shorter-term decisions made by buyers within approximately six months due to the shorter construction timeline.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by Willie Tan | Sep 25, 2024 | News
The Samyan Smart City project in central Bangkok is making notable advancements in smart energy development. The Metropolitan Electricity Authority (MEA) recently announced the successful relocation of overhead power and communication cables underground, significantly improving the urban landscape.
This initiative, which began in June 2019 in collaboration with Chulalongkorn University, saw the removal of cables along Chulalongkorn Soi 12 and near the King Rama VI Monument at Lumpini Park. This effort not only enhances the city’s aesthetics but also supports the broader goal of smart energy management in the area.
Key developments include installing a Battery Energy Storage System (BESS) and the creation of a smart grid. The BESS, which works alongside solar and wind power, ensures a consistent electricity supply despite variable weather conditions. The smart grid will enhance electricity production, sales, and consumption management, leveraging consumer behaviour data for better efficiency.
Samyan Smart City spans 1,153 rai, bordered by Banthat Thong, Rama IV, Henri Dunant, and Rama I roads. Overseen by Property Management of Chulalongkorn University (PMCU) and initially funded by the Energy Conservation Fund in 2017, the project also includes rooftop solar panels and a district cooling system developed by BCPG, a subsidiary of Bangchak Corporation.
Additionally, the project promotes smart mobility with battery-operated shuttle buses, providing eco-friendly transportation options for students and residents.
These efforts underscore the commitment to transforming Samyan into a model of sustainable urban living through innovative energy solutions and smart city technologies. The collaboration between MEA and Chulalongkorn University highlights the importance of partnerships in achieving these ambitious goals. As the project progresses, it continues to set a benchmark for smart city initiatives in the region, demonstrating how urban areas can evolve to meet the demands of modern living while prioritising sustainability and efficiency.
by wilbersuen | Sep 24, 2024 | News
Condominium transfers to buyers from Myanmar during the first half of 2024 exceeded the total transfers recorded in 2023, which had set a previous record.
According to the Real Estate Information Center (REIC), 638 condo units valued at 3.24 billion baht were transferred to Myanmar nationals across Thailand in the first half of 2024.
This surpasses the 564 units worth 3.7 billion baht transferred throughout 2023, marking the highest level of transactions to date.
The surge in condo transfers to Myanmar nationals began in 2022, with 349 units valued at 2.55 billion baht, a significant jump from just 30 units worth 274 million baht in 2021.
“For the first time in 2022, Myanmar nationals ranked among the top 10 foreign buyers receiving condo transfers, compared to only 20-50 units annually in previous years,” said Vichai Viratkapan, Acting Director-General of REIC.
In 2022, Myanmar nationals ranked sixth in terms of the number of condo transfers, following buyers from China, Russia, the U.S., the U.K., and France, respectively.
In terms of condo transfer value, Myanmar nationals ranked third, trailing only Chinese and Russian buyers.
In 2023, Myanmar buyers moved up to fourth place in the number of condo transfers, behind Chinese, Russian, and American nationals, while maintaining their third-place ranking in transaction value.
In the first half of 2024, Myanmar buyers rose to second place in both the number and value of condo transfers, surpassing Russian buyers who had held the second spot for several years, with Chinese nationals continuing to lead.
However, a significant decline was noted in the second quarter of 2024, following a crackdown by Myanmar’s government in April 2024 on Thai condo purchases by Myanmar nationals.
Condo transfers to Myanmar buyers dropped to 246 units valued at 1 billion baht in Q2, compared to 392 units worth 2.2 billion baht in Q1.
A property industry source cited not only stricter money transfer regulations in Myanmar but also more stringent measures by Thailand’s Lands Department, which has tightened foreign exchange transaction (FET) controls.
“If an FET is not clearly documented, the transaction will be frozen,” the source explained, adding that this policy impacts not only Myanmar buyers but also Chinese buyers.
Overall, the REIC reported that total condo transfers to foreign buyers in Thailand during Q2 2024 declined by 6.2% year-on-year, with 3,342 units transferred valued at 14.8 billion baht, a 17.7% drop.
As a result, the proportion of condo transfers to foreigners fell to 11.8% by unit volume and 21.1% by value, compared to 13.6% and 24.6%, respectively, during the same period last year.
Source: Bangkok Post
Yours sincerely,
The editorial team at Invest Bangkok Property
by Daryl Lum | Sep 11, 2024 | News
Nue Epic Asok-Rama 9 launched over the weekend that just passed. This project was hotly anticipated. It is located in the very popular Rama 9 business district. It is walking distance to the Phra Ram 9 MRT station.
Before this launch event, there were pre-launch sales. These sales were only to clients of certain agencies. Even then, sales were strong due to the good location and attractive pricing. Imagine a freehold condominium in the Rama 9 area for about THB 3.xx million.
Here are some pictures of the launch event.
More than 100 units were sold over the weekend! There are still some available launch units available. If you are interested in a unit, do contact the IBP Real Estate Sales Team at +66 66 112 8862 (WhatsApp) or email [email protected].
Here is the Nue Epic Asok-Rama 9 sales site: https://nueepicasokrama9.com/
Here is a review of Nue Epic Asok-Rama 9: https://daryllum.com/my-review-of-nue-epic-asok-rama-9/
Yours sincerely,
The editorial team at Invest Bangkok Property
by Willie Tan | Sep 9, 2024 | News
Thailand is set to distribute 145 billion baht (US$4.2 billion) from its “digital wallet” handout program earlier than initially planned, aiming to support vulnerable groups and provide short-term economic stimulus. This announcement was made by Deputy Finance Minister Julapun Amornvivat on Monday, September 9.
During a budget debate in the Senate, Julapun highlighted that the government has allocated a total of 450 billion baht (US$13.29 billion) for this flagship handout initiative. The program is designed to boost economic activity by transferring 10,000 baht to 50 million Thai citizens for local spending.
Originally scheduled for the last quarter of this year, the handout scheme is a key component of Thailand’s strategy to revitalize Southeast Asia’s second-largest economy, which saw a growth of 2.3% in the second quarter.
The recent change in government, following the unexpected removal of Srettha Thavisin as premier by the court, has created uncertainty about the timing of the promised stimulus measures. However, Paetongtarn Shinawatra, Srettha’s ally and successor, confirmed last week that part of the handout will now be distributed in cash.
Julapun noted that 32 million people, including vulnerable groups, have registered for the program so far. However, those without smartphones, who were supposed to receive funds via an application, are not included in this count. It remains unclear whether the first tranche of payments, expected later in September and sourced from the 2024 budget and other funds, will be in cash.
Paetongtarn, the daughter of influential billionaire Thaksin Shinawatra, recently assured that the new government would immediately stimulate the economy and adhere to Srettha’s policy agenda. Her administration published a policy statement on Sunday, which she will present to parliament later this week.
Despite criticism from economists, including two former central bank governors, who deem the handout scheme fiscally irresponsible, the government maintains that the policy is essential to invigorate the economy. The central bank projects a modest growth of 2.6% this year, up from 1.9% in 2023, but still lagging behind most regional peers.
Source: CNA
