This article on demand for Bangkok condo and houses appears in the Dot Property Group Thailand Real Estate Year in Review. Click here to download the full report.
The Bangkok residential market saw demand split almost evenly between housing and condominiums, although international buyers have yet to reappear in droves despite Thailand’s reopening. That means developers must continue to focus on the domestic market for sales.
According to data from Dot Property Group, 96 percent of housing demand and 83 percent of condo demand came from local home seekers last year. The housing figures are not surprising given the country’s land ownership restrictions on foreign buyers, but the condo total remains low compared to pre-pandemic levels.
Condo units priced at THB3 million and below recorded the most interest in 2022; however, there does seem to be an increase in demand for high-end properties. The second most popular price point was THB5-10 million, followed by THB10-20 million. The once robust THB3-5 million segment has fallen due in large part to its dependence on overseas buyers.
Domestic buyers drive new condo locations
During the first quarter of 2022, Dot Property Group highlighted both the northern suburbs of Bang Sue, Chatuchak and Lat Phrao districts and the northeast suburban area of Suan Luang and Bang Kapi districts as up-and-coming areas to monitor.
By the end of the year, these locations were among the top five for Bangkok condominium demand, ranking higher than traditionally popular places like the Silom CBD and the city’s riverside. The northeastern suburbs featuring the Suan Luang and Bang Kapi districts received the second most condo inquiries. This area is anchored by On Nut Road and will be served by the MRT Orange, Brown and Yellow Lines with all three meeting at the Lam Sali Intersection in Bang Kapi.
Meanwhile, the northern suburbs containing the Bang Sue, Chatuchak and Lat Phrao districts was the third most popular location of condo units in Bangkok. This area is home to Bang Sue Grand Station; SRT Red Line and Light Red Line; and MRT Brown Line among others.
Unsurprisingly, Greater Sukhumvit remained the most in demand for Bangkok condos. It has by far and away the greatest amount of supply in the city.
Affordability is key to Bangkok housing market
The Bangkok housing market was driven by affordability with domestic buyers most interested in properties priced at THB10 million or less. These accounted for almost 75 percent of all Bangkok housing inquiries made to the Dot Property Group network of websites last year.
Between March and May, interest in homes outpaced condos which is relatively rare for the Thai capital in modern times. Knight Frank Thailand noted limited supply could be holding the market back. A lack of available homes could be a reason interest fell behind condo units during the second half.
The most popular locations for housing in Bangkok are all in suburban districts where prices remain low due to an abundance of land. These areas are connected to the city center via expressways.