Property firms, banks and investors are focusing on the future property market of Bangkok, which is predicted to grow significantly over the next year according to the general consensus.
The growth of the property market is predicted to be concentrated in certain areas around the city, especially those that are gearing up for incoming infrastructural changes and mass transportation lines. Specifically the Purple Line, which will be completed this year is a hot topic of discussion among those in the industry, as it may be cause for a major market demand along its route.
Kiatnakin Bank, which has recently relaxed its criteria for offering project loans is reportedly monitoring whether the condominiums that will be completed along the Purple Line will actually be desirable to property owners and dwellers, or simply to speculators and investors who may hold on to the properties and leave them empty while the land appreciates.
The loans, while more lenient than before are still restrictive on some projects that may be risky, or are already experiencing competition despite the fact that the Purple line has not yet been built. Once the infrastructural transportation projects begin, the demand will naturally increase, especially for serviced apartments which are predicted to grow by 4%. Rental businesses including hotels and commercial spaces may grow accordingly, by 2-4%.
If there are in fact more speculators along the purple line than actual customers, the bank’s new relaxed lending will be adversely affected. The relaxation is a result of an increasing demand for home purchases, which they say they expect to continue to grow by up to 15% just this year.
While the market will grow this year in terms of value, the property firms have also begun targeting more upscale market. As the two factors may balance one another out, the volume growth may remain stagnant.
