According to Thailand’s property and facility management agency Plus Property, condominium market survey, the data indicates that during the time of the Tom Yum Kung crisis, condominium projects were primarily constructed in response to actual demand for residential use.
Two-bedroom and larger units rose to popularity in the pre-crisis years, before widespread development of public transit systems led to higher demand for studio and one-bedroom units.
However, Plus’ own unit resale data shows that two-bedroom units have increased in share, from 22% last year to 25%, signifying a behavioural shift among consumers that may lead developers to offer more two-bedroom units with an initial focus on the high-end segment.
Mr. Poomipak Julmanichoti, Managing Director of Plus Property Company Limited, revealed that condominiums had become a major part of life in Bangkok over the past ten years due to the greater convenience offered by modern public transit systems, like the BTS Skytrain. Condominium unit prices vary inversely with their distance from city centre areas and directly with unit size – the larger the unit and the closer it is to downtown zones, the higher the price.
“In the period just before and after the Tom Yum Kung crisis, condominium projects were constructed in response to actual residential demand. Most were either two-bedroom units or larger. The opening of the BTS Skytrain in 1999 coincided with an economic revival.
Projects suspended during the crisis resumed construction and saw it through to completion. Once the Skytrain system achieved widespread popularity in 2004, more condominium projects began development along Skytrain routes. These projects were designed to fit the more frenetic urban lifestyle.
Demand for two-bedroom units is rising.
With consumers primarily seeking new homes in the vicinity of their workplaces for commuting convenience, developers began to focus more on one-bedroom unit types. The trend persisted throughout 2009 as condominium living became increasingly popular. With younger generations showing a tendency to prefer living alone in exchange for greater convenience, studio units also grew in prominence alongside one-bedroom condominiums.
Development in 2014 is now focused on one-bedroom units of ever-smaller sizes, which are more affordable for middle-class buyers.
Investment in one-bedroom units is also on the rise due to the ease of finding new tenants, especially as expats are spending significantly less on residential rentals compared to before the Tom Yum Kung crisis. Today, Japanese expats represent the largest group of foreign condominium tenants, with their budgets generally more suited to one-bedroom rather than two-bedroom units – hence the very small amount of two-bedroom units found in new projects.”
However, demand for two-bedroom units is also rising.
Many consumers who invested in one-bedroom units five to ten years ago now have extended families, and hence require more residential space. Demand for larger units can be expected to increase throughout the next five years, as new developments today are still focused on studio and one-bedroom units.
Projects located on Bangkok’s fringes also reflect the trend of growing demand for two-bedroom units. Plus Property’s resale data correlates with this finding, showing an increase in the resale share of two-bedroom units, from 22% last year to 25% today.
Bangkok 7th World Most connected city to China
Bangkok also ranks 3rd in terms of the volume of Chinese corporate leasing activity over the last three years, according to a new report from real estate consulting firm JLL.
While China’s biggest corporates are increasingly flexing their global muscle as the country’s economic and geopolitical influence accelerates, Bangkok is the 10th most popular destination for mainland firms expanding overseas. (more…)
Thailand’s Special Economic Zones (SEZ) and new opportunity connected
The SEZ policy was first launched in 2015 based on the government’s belief in the strong potential of the 10 areas to connect with the neighboring countries in terms of trade, economy and investment
With its strategic location in the center of ASEAN with emerging markets, including Cambodia, Laos, Myanmar, Malaysia and southern China, on its border, Thailand is well position to connect investors to new opportunities arising from the increasing border trade and the region’s rapid economic growth.
Can border reopening revive tourism in South-East Asia?
In Thailand, where pre-pandemic tourism accounted for 11-12% of GDP, the country lost an estimated $50bn last year as Covid-19...
Thailand dropped from UK’s tough covid-19 travel ‘red list’
Earlier, Thailand was listed among countries with high infection levels that were put on a ‘red list’, requiring arrivals to...
The ASEAN-Russia Trade and Investment Cooperation Work Program
ASEAN and Russia recently agreed to enhance and widen economic cooperation at the 10th ASEAN Economic Ministers (AEM)-Russia Consultations held...
Flexible Workspace Startup Worklounge Debuts with 20+ Luxury Member Lounges in Thailand
Worklounge launches a premium membership granting remote professionals and executives access to exclusive hotel lounges across Thailand. Their platform is...
5 insights to guide ASEAN’s digital generation in a post-pandemic world
We surveyed 86,000 people from six ASEAN countries about their views for a post-pandemic world. The ASEAN Digital Generation Report...