See The Most Recent Thailand 2023 Property Market Review
Thailand Housing Market Overview
- Thailand’s real estate market is expected to grow in the second half of 2023.
- The Price Index of single-detached houses increased by 6% YoY
- The Demand Index increased by 58% vs. pre-pandemic
- Overall, property prices are forecasted to remain the same in the second half of 2023.
- Thailand is fast becoming the centre of attention when it comes to business globally.
- Bangkok rental properties are in higher demand for tourists and long-term residents.
- The Thai economy and the country’s infrastructure are still improving and development continues outside Bangkok.
- Villas are still in demand as developers also look to build on bigger plots of land as people look for more room since the pandemic.
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Why is attention turning to the Thai Property Market?
The 2021 Thai real estate market declined slightly due to several factors; however, it was mostly due to the COVID-19 pandemic and more recently global financial markets taking a turn with potential recessions that have impacted the Thailand property market.
The Thai government has since then launched new initiatives to overcome the challenges and begin a recovery phase. The Thai government expects that these new foreign incentives will attract more than a million new foreign investors and professionals within the next five years, and this is expected to contribute over 1 trillion baht in total (US$30 billion) to the economy.
The pandemic has influenced many outside foreign purchasing as it became harder to travel and plan property purchases. For this reason, consumers were taking longer in deciding and holding off on Thai property purchases, however, the Thai housing market is progressively changing and new investors are coming back into the market as the current situation becomes the norm.
With that said, looking towards 2022, the Thailand real estate market is expected to recover rapidly. New incentives for foreign Visas and Tax advantages on property purchased as well as Thailand being an upcoming country to buy will be favourable to many.
Overall, property prices are forecasted to remain the same in 2022 compared to previous years and this is good news for new buyers.
One of the main factors for a speedy recovery of the Thai housing market and growth in the Thai economy will be how well the Thailand government controlled the spread of COVID-19 and economic stimulus measures and incentives that have that will continue to help the property market recover.
Thailand is fast becoming the centre of attention when it comes to business and property investments, Thailand offers a world of opportunities and this has interest from investors all over the world. If you are planning on investing in a luxury home of your own, then you will be able to find luxury homes at relatively affordable prices compared to the rest of the world.
As is to be expected, properties will be more expensive in central Bangkok and other in-demand locations. In cities like Bangkok, rental properties are in higher demand for tourists and long-term residents. The same higher property rental prices also go for islands like Koh Samui or Phuket with property in demand from local residents, overseas tourists, Thais, and Ex-Pats who want a luxury getaway from the mainland or big city life.
Where are property prices in Thailand increasing?
The Thai economy and country’s infrastructure are developing well and just outside Bangkok, you will find a vast area of factories and warehouses conveniently located close to seaports, airports, and road and rail networks.
Companies are also starting to notice the affordable labour costs which are helping ensure manufacturing and the cost of doing business are affordable and attractive. There is also no shortage of office space and other facilities and with neighbouring countries being expensive in Chain, Singapore and others this also helps make it easier to do business between countries.
Key Property Trends in Thailand for 2022
The Covid pandemic and the current financial market worries in 2022 are no doubt the main reasons why consumers are now more careful around their spending habits on unnecessary items, however, buying property is not one, especially in Thailand.
Here are a few reasons why many high-net-worth individuals are favouring Thailand’s property market at the moment.
- Keeping the covid outbreak under control in comparison to many other countries.
- Government visa and property incentives welcome professional foreigners to the country.
- The potential of the country’s economy over the next years for living, property and business.
- Thailand is a business hub with easy access to neighbouring Asian countries with multiple airports and flights daily.
- The luxury property market is still considered to be relatively cheap and value for money for home buyers and investors.
Should you buy or sell property in Thailand in 2022?
For buyers wanting to invest in the Thailand property market now is as good a time as any to be looking at potential purchases in 2022 leading into 2023. Government policy aimed to attract professional foreigners to live and work in Thailand is estimated to contribute 30 billion US dollars over the next years to the economy.
Villas seem to be where the money is heading rather than condos due to the Covid 19 pandemic giving buyers more privacy with less potential interactions with others in condominiums. Buying property in Phuket, Thailand is expected to increase over the coming years with the new incentives.
For the sellers, it is a slightly different story as many developers have unsold inventory due to the pandemic which push property prices in Thailand down a bit. This could perhaps change and is likely that holders will gain more value and net higher profits in 2023/24.
Some of the areas that are gaining good ground with a positive increase in price growth are the out banks of Bangkok city as new business and industrial complexes expand internationally.
Thailand Property Market Set to Recover in 2022
The Thai real estate market shows good signs and is expected to recover in 2022. We have already seen positive signs of this in Q4 of 2021, with the easing of COVID-19 restrictions, and overall economic rebound through stimulus and incentives.
Going into 2022 we will see developers and sellers wanting to reduce their current property portfolio to consumers with strong purchasing power.
The Thai property market although set to look positive will not be left without possible constraints. The growth is relying on new purchases from new money coming into the system and the hope is that the new monetary and residential policy will be of interest to foreign buyers.
At Silk Estate we are here to help guide you in the right direction to help find and legally own luxury property in Thailand. To find out the best way you can make this happen and the benefits of owning in Thailand book a call today with our consultants.
