Houses in the THB10-20 million price range are seeing strong demand which is forcing developers to bring more units in this segment to the market. According to Knight Frank Thailand, more than 50 percent of all home sales in the Thai capital during the first half of 2022 were at this price point.
“Supply of houses priced from THB10 million and up continues to increase, despite the overall economy being in a state of recovery. This segment of the housing market still experiences significant growth against the current downturn, reflecting demand from buyers who wish to purchase houses in pre-sales phases; in fact, many such projects have been sold well before being completed,” Khun Nattha Kahapana, Managing Director at Knight Frank Thailand, said.
The consultancy added buyers in this segment have been relatively unaffected by inflation and the current economic situation. Location preferences for THB10-20 million homes is usually dictated by availability since supply at the moment remains tight.
“These homebuyers have a stable income and are in the midst of shifting their housing situations or acquiring their second and third homes,” Khun Nattha stated. “As a result, demand for this segment of houses is quite high. The bustling neighborhoods in this housing mostly located in the extension areas of Bangkok (East Bangkok Zone, Bangkok West Zone and North Bangkok Zone), which still have large plots of land available for development as well as transportation options that facilitate easy access to the city’s business center.”
Knight Frank Thailand found that 47 percent of all new housing supply launched during the first six months of this year came in THB10-20 million price range. Looking ahead, the segment should continue to perform well.
“In the second half of the year, we expect that the market will go in a positive direction, due to the target buyer group’s continued purchasing power for real residential purposes. In the rest month of the year, developers will still focus on this segment of the market, continuously launching new projects. They remain confident in the demand generated in this segment,” Khun Nattha concluded.
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