We hope to develop the real estate sector by 2023

In 2022, Thailand's real estate sector has not fully recovered due to the economic downturn and the effects of the Russia-Ukraine war, as well as high inflation and interest rates. However, while the expected recovery has not occurred, the overall outlook offers renewed hope for 2023.

The Consumer Confidence Index (CCI), which has continued to rise for six consecutive years, currently stands at 47.9, the highest level in 20 years, indicating a return of consumer confidence in spending. Another factor that supported the real estate industry is the continued relaxation of Bank of Thailand lending (leverage ratio: LTV), which is coming to an end. It has successfully incentivized customers with real demand to buyreal estate.

When making a purchase decision, real estate buyers prioritize location, according to leading real estate website DDproperty. In DDproperty's latest consumer sentiment survey in Thailand, 53% of respondents said they were looking for a project with access to public transportation, while 50% said location was the top factor in their purchase decision. The study, covering the period from January to November 2022, shows that surrounding provinces have overtaken key tourist destinations in terms of housing preference.

Bangkok still remains at the top of the list among property buyers, followed by Nonthaburi, Samui Prakan, Pathumthani and Chonburi respectively. Famous tourist destinations such as Chiang Mai (6th place), Pratchubhir Khan (7th place) and Phuket (8th place) did not make the top 5. Here again, location and transportation play a key role in dictating trends. The surrounding provinces have become more interesting to real estate buyers due to the planned and completed rail links between Bangkok City and Greater Bangkok (Nonthaburi and Pathumthani). For a specific location in Bangkok, it is even more evident that transportation is an important factor, so the Suan Luan area on the east side of the city is now the leading preferred location.

After Suan Luan, the highest demand from property buyers is seen in Bangchak in Bangna sub-district, Khlong Tan Nua in Wattana district, Lad Prao, Huay Kwang, Jompol in Chatuchak district, Hua Mark in Bang Kapi and Din Deng and Samsen Noi in Phya Thai district. Of these top locations, Khlong Tan Nua generates the most interest in the apartment category, while Bangchak, easily accessible by the BTS Skytrain, is the most desirable area for rental properties. The neighborhood has also become a diverse community, and while land prices have been rising for a long time, some condos and rental apartments are still within the affordable range.

In 2022, apartments are still the most sought-after property among potential buyers (55%), followed by detached houses (28%) and townhouses (17%). Forty-two percent of potential apartment buyers want to find an apartment in the price range of 1 to 3 million baht, while potential house buyers are willing to pay no more than 10 million baht for a detached house. This shows that 42% of first time home buyers are looking for an affordable price for their first home, while 36% of people looking to buy a home prefer a luxury option and 20% want a relatively affordable home in the range of 3 to 5 million baht per unit. In terms of price, townhouses are priced the same as apartments, with 48% of potential buyers willing to pay between 1 and 3 million baht per unit. And potential tenants are looking for something in the range of 10,000 to 20,000 baht per month.