There is a buyer’s market in Thailand, but those looking for real estate need to be proactive to find the lowest possible price. Meanwhile, residential demand in the country will shift as the “new normal” causes home seekers to reevaluate their priorities.
According to CBRE Thailand, the buyer’s market in Thailand is unique in that discounts are not being offered at the same rate throughout the country. In Bangkok in particular, there have been no uniform price reductions with developers opting for various programs.
In order to find the best deals, property seekers are having to do a significant amount of research. Some events, such as the Dot Property Black Friday Sale on June 19, are assisting interested buyers by aggregating special discounts in one place. CBRE found that residential real estate sales have nearly returned to pre-COVID-19 levels.
“Currently, Thai developers have been focused on selling units in already launched off-plan developments and completed condominium. Even with a buyer’s market in Thailand having formed, speculative demand is limited with most buyers being end-users,” Khun Aliwassa Pathnadabutr, CBRE Managing Director, stated.
Residential demand set to change with “new normal”
The buyer’s market in Thailand isn’t simply leading to more sales. It’s also uncovering just how residential demand in the country is changing as the “new normal” takes hold. While these trends are still forming, CBRE believes they are worth watching as the recovery continues.
“The first trend is location which we should keep an eye on. Buyers will choose between the inner city and midtown/suburban areas. As people are spending more time at home and working from home, the need for space usage will increase,” Khun Aliwassa pointed out. “Coupled with the mass transportation expansion outside the metropolitan area, some buyers will reconsider their housing choices in terms of value related to usable space.”
Health and environmental concerns are also influencing how property demand will evolve in Thailand. CBRE noted that product development improved during past crises in response to shifts in demand that happened during the aftermath. The “new normal” being brought on by COVID-19 will likely see demand change and homebuilders innovate to keep pace.
“Developers and designers will have to bear in mind changes in buyers’ behaviors and highlight specifications that advance health and convenience of life of residents when developing a future project such as usable area, air quality and new technologies,” Khun Aliwassa said. It will be interesting to see how new products in the residential market will be developed in response to the changes in the buyer’s requirements after COVID-19.”