Question: What Are The Key Factors Driving Bangkok Condo Property Prices?
The influx of Chinese Buyers
In recent years, you would have noticed that there are more and more Mainland Chinese buying properties in Bangkok. And we reckon this is probably just the tip of the iceberg.
A lot of the major Thai developers have still not yet made the effort to penetrate the Chinese market.
You may also notice that the number of Chinese tourists to Bangkok is growing year by year. A good number of them are actually in Bangkok to do business. Eventually, they may also consider buying a property in Bangkok as a 2nd home or for investment.
As Thailand is an important jigsaw puzzle piece for China’s One Belt One Road initiative, you can expect more Chinese investors to hone in on the properties in Bangkok.
Big Scale Infrastructure Expansion By The Thai Government
The Thai Government has commissioned the construction and expansion to the existing rail network in Bangkok. This is a massive project that will eventually double or triple the number of stations Bangkok has now.
Notably, some mega projects include the Bangsue Grand Station, which will be the main interchange for all the different rail lines as well as the terminal for the high-speed rail that will link to China.
Not forgetting also the Eastern Economic Corridor, a $45 billion project that aims to industrialize the eastern seaboard of Thailand.
The Rise Of The Upper Middle-Class Thais
Another observation we have is that if you were to visit mega malls like Siam Paragon or Central World, you will actually realize that a lot of the people spending money there are the local Thais themselves.
As the country grew, the upper-middle-class Thais do have a lot more disposable income compared to several years back. Their lifestyle is also changing, such that a lot of them are now looking to stay in good quality condominiums within the city. Whenever a new project launches in central Bangkok, we do also get a lot of interests from the local Thais.
Whilst the prices are currently on an uptrend, it would be prudent to note that it is not realistic to assume property prices will forever keep running up in a straight line. Same as the Singapore, Hongkong, China or London property market, a correction is always inevitable.
Thus when we recommend Bangkok property to our clients, we would only choose projects that are of good locations and from reputable developers. This is because we always try to mitigate the downside for our clients.
Got a question for us? Reach us at [email protected]