by Daryl Lum | Sep 24, 2024 | Bangkok Property Market Updates
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 Centre (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.
by Daryl Lum | Sep 11, 2024 | Bangkok Property Market Updates, Developer Watch, New Launches & Project Previews
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 | Bangkok Property Market Updates
Thailand is set to distribute 145 billion baht (USD 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 (USD 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.
by Daryl Lum | Sep 9, 2024 | Bangkok Property Market Updates, Legal, Tax & Due Diligence, Rental Market & Landlord Guides
Hotel operators are expressing concerns over proposed changes to foreign ownership rules in real estate, fearing it could result in a rise in illegal hotels in Thailand.
The government’s proposal includes extending the leasehold period for foreigners to 99 years and increasing the foreign ownership quota in condominiums from 49% to 75%.
These measures could negatively impact the competitiveness of Thai hotels by encouraging foreign buyers to exploit the tourism industry, according to Udom Srimahachota, vice-president of the Thai Hotels Association (THA).
Mr. Udom warned that with increased ownership, more foreign buyers might convert condo units into short-term rentals for tourists. Past incidents have shown agents from countries like China purchasing entire floors in condominiums and renting them exclusively to tourists from their home country in key tourism areas.
He highlighted that licensed Thai hotels face higher costs, including land and corporate taxes, while illegal accommodations operate without the same financial burden. Currently, there are around 16,000 licensed hotels in Thailand and approximately 15,000 unregistered ones.
In one instance, Russian agents bought out a condo project in Hua Hin, using the units solely for renting to Russian tourists, directly competing with licensed hotels, Mr. Udom added. He also raised concerns that with increasing flights from China to cities like Hua Hin, Chinese buyers may be drawn to invest in properties and illegally rent them to tourists.
He further questioned the proposal to lengthen leasehold terms for foreign land buyers, pointing out the existing trend of Chinese nominees developing housing, condo projects, and hotels. These investors often import both labor and construction materials from China, limiting the benefits to the local economy.
The THA has voiced these concerns to the Interior Ministry, calling on the government to focus on enhancing the competitiveness of Thai hotels. Mr. Udom also urged the administration to ease financial restrictions, allowing small and medium-sized hotel operators better access to loans for renovations. He emphasized the importance of regulating non-hotel properties rented out to tourists, ensuring they are properly registered within the system.
by Daryl Lum | Sep 4, 2024 | Bangkok Property Market Updates, Investment Analysis
Higher debt leverage resulting from double financing is making it more difficult for property companies to secure bank loans, forcing some developers to rely on short-term loans from major shareholders.
Apinant Klewpatinond, chief executive of Kiatnakin Phatra Financial Group, a holding company of Kiatnakin Bank, said the bank continues to apply its existing loan assessment criteria for the property sector.
However, based on economic conditions and a higher debt-to-equity (D/E) ratio, credit risk in the sector has risen, making it challenging for some residential projects to obtain bank financing, he said.
During the recent era of low interest rates, many property companies increased their debt leverage through both bank loans and bond issuances. This double financing further elevated the D/E ratios of some companies.
According to Mr Apinant, the economic slowdown has presented significant challenges for several bond issuers. When approving new loans for the business sector, the bank also takes into account the potential for bond rollovers.
“For cyclical businesses, the bank will evaluate the broader business environment before approving new loans. Given the cyclical nature of the property sector, we are exercising caution in loan offerings amid the heightened risks in the mortgage market,” he said.
In response to these challenges, some residential developers are taking steps to conserve and raise cash.
These measures include avoiding new costs, borrowing short-term loans from major shareholders and selling assets to manage risks in a difficult financial market and limited mortgage loan approvals.
The property business constitutes a significant portion of KKP’s loan portfolio, accounting for 27.7 billion baht out of the bank’s total business loan outstanding of 60.1 billion baht as of June.
Additionally, KKP collaborates with the Bank of Thailand to support sustainable finance under the Financing the Transition programme, with a key focus on the property sector.
Separately, Amporn Supjindavong, UOB Thailand’s head of commercial banking, said the bank continues to offer financial facilities to property clients under a selective strategy.
For new residential investment projects, the bank primarily focuses on homes priced at a minimum of 5 million baht per unit, due to the lower risk associated with post-finance.
“Most large developers do not struggle with residential sales. Instead, they face challenges related to the increasing rejection rates of mortgage loans, stemming from homebuyers’ weakened debt repayment capabilities. As a result, the transfer of home ownership has become a more significant issue for developers than sales,” she said.
Ms Amporn said when approving loans for new residential projects, the bank considers several factors, including house prices, location, project sales and the financial status at both the project and company levels.
The D/E ratio and the company’s ability to manage bond rollovers are also key considerations.
The bank anticipates that mid-sized property companies, in particular, may resort to borrowing short-term loans from shareholders to support cash flow for investment projects. Large developers still report positive financial conditions, she said.
by Daryl Lum | Sep 3, 2024 | Bangkok Property Market Updates, New Launches & Project Previews
New condo launches in Greater Bangkok are anticipated to fall below expectations this year, largely due to sluggish demand amidst economic challenges, according to Colliers Thailand.
Phattarachai Taweewong, Director of Research at Colliers Thailand, explained that the Greater Bangkok condo market experienced a slowdown in the second quarter, driven by modest domestic economic growth and global economic headwinds.
“The Bangkok condo market overall has slowed, primarily due to a lack of strong demand drivers,” he said. “In the mid- to lower-end segments, buyers are facing high levels of household debt, rising interest rates, and a significant rate of mortgage rejections by banks.”
Colliers’ market data revealed that 5,386 new condo units across 15 projects, valued at a total of 35.6 billion baht, were launched in Greater Bangkok during the second quarter. Of these, approximately 1,000 units from four projects in inner-city, high-end segments achieved a sales rate of 65%, while units outside the city centre had a sales rate of just 30%.
In the first half of 2024, 8,674 new condo units, with a total value of 49.3 billion baht, were launched in Greater Bangkok—almost a 50% drop compared to the 15,413 units launched during the same period last year. Despite this significant decline in unit numbers, sales value for the first half of 2024 slightly increased from 48.6 billion baht in 2023, due to a higher concentration of lower-priced units in last year’s launches.
Mr. Phattarachai projected that new condo launches in Greater Bangkok this year will not surpass 25,000 units, falling short of the initial forecast of 30,000-35,000 units made earlier in the year.
“Developers have found that sales in the second quarter were weaker than expected,” he said. “Despite property tax incentives, transfers of residential units are expected to decrease this year compared to last year, mainly due to the continued challenge of mortgage rejections by banks.”
The government has introduced incentives, such as reducing transfer and mortgage fees to 0.01%—down from 2% and 1%, respectively—for residential units priced under 7 million baht. These incentives are set to remain in place until the end of the year.
By the end of the first half of 2024, the inventory of unsold condos in Greater Bangkok stood at around 56,800 units. Given the current demand, it is estimated that it would take approximately 84 months to clear this inventory, compared to 60 months under more favourable economic conditions, Mr. Phattarachai added.
by Daryl Lum | Sep 2, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
The vision of a continuous train journey from Bangkok to Beijing is closer to becoming a reality, thanks to the recent completion of a critical railway bridge over the Mekong River, connecting Thailand and Laos. This milestone significantly advances cross-border rail transport between the two countries, with only a few kilometers of track left to extend the route into China.
The newly operational Thai-Lao railway allows passengers to travel on a 12-hour journey from Bangkok’s Krung Thep Aphiwat Station to Khamsavath Station, just outside Vientiane, Laos. Khamsavath Station, situated approximately 9.6 kilometers from Vientiane, now serves as the final stop for this cross-border connection.
Final Stretch to China Despite the progress, a gap in the rail network still hinders a direct connection to China. Currently, passengers and cargo arriving in Vientiane must use taxis, vans, or other vehicles to cover the distance between Khamsavath Station and Vientiane Railway Station, which serves as the gateway to China. Officials remain optimistic that the remaining tracks will be completed by 2028, finalizing the direct rail link from Bangkok to Beijing.
Vientiane Railway Station, a modern facility built by China and located 16 kilometers northeast of the Lao capital, serves as the hub for high-speed trains connecting Laos to southern China. These sleek trains, part of China’s Belt and Road Initiative, have been in operation since 2021, linking Laos to major Chinese cities such as Kunming, Beijing, and Shanghai.
Boosting Trade and Tourism The Bangkok-Vientiane rail route is expected to greatly enhance trade between Thailand and Laos while also driving international tourism to Laos. As the once-isolated, single-party nation continues to welcome more foreign visitors, this rail connection is seen as a vital step in fostering greater cross-border exchange.
Ticket prices for the Bangkok-Vientiane journey are affordable, with third-class seats starting at USD 7.80, air-conditioned second-class seats at USD 16, and sleeper options available for USD 22 to USD 25.30.
Previously, trains from Bangkok only reached Nong Khai, with a highway crossing over the Friendship Bridge as the sole route into Laos. The recent extension of the rail line by approximately five miles into Laos, coupled with the construction of the new railway bridge, has now enabled direct rail travel between the two countries.
Collaboration between the State Railway of Thailand (SRT) and the Lao National Railway State Enterprise has ensured smooth operations, from scheduling and station management to ticket sales. As the train crosses the Mekong, Lao drivers take control, ensuring Thai drivers are not exposed to international liability when operating on Lao soil.
Gateway to China and Beyond For travelers seeking to continue their journey beyond Laos, the Chinese-built train service from Vientiane to Boten Station in southern Yunnan province provides a direct route into China. The service passes through key northern Lao cities, including Vang Vieng, Luang Prabang, Muang Xay, and Luang Namtha, before reaching the border. The Vientiane-Boten trains navigate through 75 tunnels, cutting across the rugged terrain and lush landscapes of northern Laos, an area still marked by unexploded ordnance from the Vietnam War.
by Daryl Lum | Aug 28, 2024 | Bangkok Property Market Updates, Investment Analysis
In July, exports posted their highest growth in 28 months, surging by 15.2%, as easing inflation and improved purchasing power among key trading partners fueled demand.
Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office (TPSO), reported that exports reached USD 25.7 billion (938 billion baht) in July, largely driven by declining global inflation, which bolstered consumer spending capacity. Excluding gold, oil-related products, and weaponry, real sector exports increased by 9.3%.
Key factors contributing to this growth included rising employment and wage adjustments among major trading partners, particularly in Europe, which led to stronger consumer demand, boosting exports. Major markets showing strong recoveries included the US, China, Southeast Asia, and the European Union.
This trend aligns with the International Monetary Fund’s economic outlook, which points to a lift from China’s export-driven recovery and Europe’s rebound from earlier challenges.
Imports in July rose by 13.1% to USD 27.1 billion, resulting in a trade deficit of USD 1.37 billion. Over the first seven months of 2024, exports grew by 3.8% to USD 171 billion, while imports increased by 4.4% to USD 178 billion, creating a cumulative trade deficit of USD 6.62 billion.
Agricultural and agro-industrial product exports rebounded in July, rising 8.7% year-on-year to USD 4.36 billion, led by strong performance in rubber, rice, poultry, seafood, pet food, and edible oils. However, declines were noted in certain categories, including fruit, tapioca, sugar, and beverages.
Industrial product exports saw a significant year-on-year increase of 15.6% to USD 20.3 billion, recovering from previous declines. Key export drivers included oil-related products, electronics, and air conditioning equipment, while sectors like automobiles and semiconductors experienced decreases.
Mr. Poonpong expects exports to rise by 1-2% in 2024, supported by global economic recovery, industrial production improvements, and growth in the digital economy. However, risks such as geopolitical tensions and uncertainties in economic and trade policies following elections in key countries could weigh on future export performance. The Ministry of Commerce will continue to monitor these risks closely.
Meanwhile, Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council, noted that although sea freight costs have eased, potential baht appreciation in the fourth quarter could pose challenges for exports.
by Daryl Lum | Aug 21, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
The State Railway of Thailand (SRT) has announced that a new train service from Bangkok’s Bang Sue Grand Terminal to Penang, Malaysia, will commence within two to three months.
On August 20, Mr. Ekkarat Sri-arayangpong, Chief of the Office of the Governor of SRT, confirmed this development. It was endorsed by Mr. Awirut Thongnet, Deputy Governor of SRT, during the 42nd KTMB – SRT Joint Conference held in Kota Kinabalu, Sabah, Malaysia, from August 13-16.
The initiative aims to strengthen bilateral rail cooperation, improve passenger travel, and enhance cross-border goods transportation between Thailand and Malaysia. It aligns with the broader policy of Mr. Surapong Piyachot, Deputy Minister of Transport, to stimulate economic growth and boost tourism for both nations.
The conference approved the Bangkok Grand Station – Padang Besar – Butterworth, Penang, route in principle, which is expected to enhance travel connectivity and promote tourism and trade between Thailand and Malaysia.
The agreement also includes extending the MySawasdee tourist train service from Hat Yai Junction in Thailand to Surat Thani Station, following positive feedback and full occupancy rates on all trips.
This extension is anticipated to further stimulate tourism and generate increased revenue for both nations. Further discussions will focus on finalizing operational details and implementation timelines.
A joint working group will be formed to advance the launch of the extended Bangkok-Padang Besar-Butterworth service, expected to commence within the next 2-3 months, with an initial 6-month trial period.
Mr. Ekkarat also highlighted that the meeting explored further freight transport cooperation, with the SRT expressing readiness to support cross-border goods transportation through routes such as Padang Besar – Hat Yai Junction, Hat Yai Junction – Bang Klam/Ban Thung Pho Junction/Kantang, and Padang Besar – Bangkok/Sapli/Na Pradu.
In addition, the success of the ASEAN Express train service connecting Malaysia, Thailand, Laos, and China was recognised, and plans to increase its frequency from once a week to twice a week were discussed.
This collaboration marks a significant expansion in Thailand-Malaysia rail connectivity, promoting seamless travel, trade, and tourism while reinforcing Thailand’s ambition to become a regional hub for tourism and logistics.
by Daryl Lum | Aug 20, 2024 | Bangkok Property Market Updates
The registration process for the 10,000-baht stipend under the Digital Wallet program commenced on August 1st, with funds expected to be accessible in the fourth quarter of this year to stimulate economic activity. The initiative is projected to inject 450 billion baht into Thailand’s economy, benefiting 45 million Digital Wallet users nationwide.
This program is anticipated to generate four significant economic “whirlwinds,” revitalizing the manufacturing sector and bolstering confidence in Thailand’s economy. The disbursement of funds will drive consumer spending, encourage transactions in both small and large businesses, create new investment opportunities, and boost purchasing power, ultimately doubling economic activity and reviving the production sector.
Key Highlights
Overview of the Digital Wallet Initiative
- The Digital Wallet initiative is a 450-billion baht program launched by the Thai government.
- It aims to increase monetary circulation, reduce living costs, improve quality of life, strengthen economic resilience, create job opportunities, and support the advancement of digital technology and innovation.
- The program commenced on August 1, with registration open until September 15 for eligible Thai citizens.
- Eligible participants include those not serving prison sentences, not required to refund previous government assistance, and not disqualified from other governmental programs.
Economic Impact of the Initiative
- The initiative is expected to generate four key economic “whirlwinds”:
- The first “whirlwind” will boost consumer spending and support grassroots economic growth.
- The second will promote spending at both small and large businesses.
- The third will encourage spending between major retailers, fostering investment opportunities.
- The fourth will temporarily increase purchasing power, leading to doubled economic activity, a revived production sector, and renewed confidence in Thailand’s economy.
Registration and Disbursement Details
- Participants can register via the Thang Raj app or through personal registration from September 16 to October 15 for those without smartphones.
- Businesses interested in participating can begin registering on October 1, with around two million stores expected to join.
- Funds will be disbursed in the fourth quarter, with spending restrictions for those without smartphones, who must present their ID cards for in-person purchases.
- Purchases are limited to goods or services within the recipient’s registered district, excluding items on a designated “Negative List.”
Funding for the Initiative
- The program will be funded through multiple sources:
- 165 billion baht from the 2024 fiscal budget, including a 122 billion baht supplementary budget and 43 billion baht from budgetary management.
- 285 billion baht from the 2025 fiscal year budget.
- The Deputy Finance Minister has confirmed that funding the initiative poses no issues.
The Growing Influence of Digital Wallets
Digital wallets are rapidly transforming the financial sector, revolutionizing how consumers and businesses handle transactions. Finance ministers globally are increasingly acknowledging the potential of these digital payment systems to enhance economic efficiency, improve transaction security, and foster financial inclusion. As more people adopt digital wallets for their convenience and accessibility, governments are beginning to observe changes in spending behaviours and economic dynamics.
Digital wallets have the power to significantly increase consumer spending by removing the need for physical cash and offering easy access to funds. This convenience encourages spontaneous purchases and smooth transactions, leading to heightened economic activity. Additionally, digital wallets often include budgeting tools that help users manage their finances better, boosting overall economic confidence.
For businesses, digital wallets streamline transactions and reduce the costs associated with handling cash. Small and medium enterprises, in particular, can benefit from faster transaction times, allowing them to serve customers more efficiently. The integration of digital wallets with loyalty programs and targeted promotions also enables businesses to collect valuable customer data, enhancing personalized marketing efforts and fostering customer loyalty, which is crucial in a competitive market.
On a broader scale, digital wallets can play a critical role in financial inclusion, especially in regions with limited banking infrastructure. By providing a platform for unbanked populations to participate in the economy, these wallets can stimulate local businesses and contribute to economic stability. As finance ministers recognise the potential of digital payment solutions, they are likely to implement supportive policies, creating conditions for economic “whirlwind” effects that benefit both consumers and businesses.
by Willie Tan | Aug 19, 2024 | Bangkok Property Market Updates
Paetongtarn Shinawatra was officially confirmed as Thailand’s prime minister by the king on Sunday, August 18, following her election by parliament two days earlier. This sets the stage for her to form a new Cabinet in the coming weeks.
At 37 years old, Paetongtarn is Thailand’s youngest prime minister, succeeding Srettha Thavisin, who was removed by the Constitutional Court, an institution often at the centre of the country’s ongoing political unrest. Paetongtarn is the daughter of Thaksin Shinawatra, a prominent and polarizing political figure, and she secured the position after receiving 319 votes in the House of Representatives, making her Thailand’s second female prime minister and the third member of the Shinawatra family to hold the office, following her father and aunt Yingluck Shinawatra.
The king’s approval, a formal requirement, was announced during a ceremony in Bangkok by the House Secretary, Apat Sukhanand. Paetongtarn, dressed in official attire, knelt before a portrait of King Vajiralongkorn to pay her respects and delivered a brief speech expressing gratitude to the king and parliament. She emphasized her commitment to working with legislators openly and listening to all viewpoints to ensure the country progresses with stability.
Despite her lack of previous government experience, Paetongtarn faces significant challenges, including a struggling economy and declining support for her Pheu Thai Party, which has yet to fulfil its promise of a 500 billion baht (approximately USD 14.46 billion) digital wallet program.
After receiving the royal endorsement, Paetongtarn embraced her father and family members. In her initial press conference, she pledged to continue the policies of her predecessor, Srettha, focusing on economic stimulus, drug enforcement, healthcare improvement, and promoting gender diversity. She reaffirmed her commitment to the digital wallet policy, although she intends to review it to ensure fiscal responsibility.
Paetongtarn stated she has no plans to appoint her father, Thaksin, to any government position but will seek his counsel. She also mentioned that her government’s policies will be presented to parliament next month.
The recent dismissal of Srettha after less than a year in office serves as a warning of the risks Paetongtarn faces in a political environment characterized by coups and court rulings that have repeatedly disrupted governments. The Shinawatra family’s political legacy and future are also at risk, as their once-dominant influence suffered a setback in the last election, forcing them to collaborate with their long-time adversaries in the military to form a government.
Recent events suggest a breakdown in the fragile agreement between Thaksin and the royalist establishment. This facilitated his return from 15 years of self-exile in 2023 and Srettha’s brief tenure as prime minister. A week earlier, the court that removed Srettha also disbanded the Move Forward Party, which had won the 2023 election, over its campaign to amend a royal defamation law, arguing it threatened the constitutional monarchy. The popular opposition party has since reorganized under a new banner, the People’s Party.
by Daryl Lum | Aug 14, 2024 | Bangkok Property Market Updates, Investment Analysis, New Launches & Project Previews
Clients often ask us whether developers will increase their prices as time passes. The answer in most cases is yes. If you made a purchase during launch, the price which you paid for that development is typically lower than what you would pay if you bought into the development after a few years.
An example of this:
Let us take a look at a very popular project in the Rama 9 area. This project is Nue District R9. It is located next to Jodd Fairs, behind Grand Central Rama 9. This area is often heralded as the second central business district with the Sathorn Financial District being the first. Companies like Unilever and Huawei are in this area. So are the Stock Exchange of Thailand and the Chinese Embassy.
Back in 2022, the per square meter of a unit in Nue District R9 was about THB 130,000 to just above THB 140,000 per square meter.
Fast forward to July 2024.
This is the current pricing for the last eight units in the development. The per square meter pricing, before discount, has gone up to about THB 200,000 per square meter. After the discount, the per square meter pricing is averaging at just under THB 200,000 per square meter.
The increase in pricing is more than 30% from the launch.
We make this comparison because we sold units in Nue District R9 in 2022 and today in 2024, a client wants to purchase a unit in the same development.
To summarise, buying a development during launch is advantageous for two main reasons.
- Prices are cheaper during launch.
- You have more choices when choosing a unit.
To ensure this, may we suggest a few pointers.
- Always buy from a reputable developer.
A large local Thai developer that is listed on the Stock Exchange of Thailand. Such developers have holding power and have reputations to maintain. They will not slash prices and will gradually sell units at higher prices over time. There is no time limit for Thai developers to sell out their stock. Nue District R9 is by Noble Development. Noble Development was the developer behind Noble Ploenchit. Noble Ploenchit was completed in 2016. The development was sold out only this year. The developer took their time selling their unsold stock.
- Buy a development in a prime location.
The reason why Nue District R9’s pricing increased is because it is located in the Rama 9 financial district. It is within walking distance of Phra Ram 9 MRT Station. There are development plans in the area moving forward. The land that Jodd Fairs is sitting on will eventually become a mixed development with offices and hotels. Yes, we agree that there is a lot of vacant land in Thailand. However, land is extremely limited in the core regions of Bangkok like Siam, Ratchathewi, Ploenchit, Rama 9, Sathorn, Silom, Thong Lor and Ekkamai.
There is a new development in the Rama 9 area called Nue Epic Asok-Rama 9. Prices start from about THB125,000 per square meter. This is significantly lower than the current price of Nue District R9.
Here is a review of Nue Epic Asok-Rama 9: https://daryllum.com/my-review-of-nue-epic-asok-rama-9/
