Market Outlook for Thailand’s Real Estate Shows Potential Recovery for 2022
Market Outlook for Thailand’s Real Estate Shows Potential Recovery for 2022 As many people already know, due to the impact of the global economies on various industries, the real estate market has suffered significantly as well. This has led to a surplus in properties that are being sold/rented at a relatively low price, below market value, leading to buyers benefiting from this situation. While it is true that many buyers have delayed, postponed, or even stopped their buying processes or property searches, there have been buyers out there that have seized the opportunity during this crisis for undervalued properties.
According to studies done by Juwai.com, one of China’s leading property buying websites and real estate portals, there are signs of recovery for the Thai real estate marketing within the upcoming years. The executive chairman of Juwai, Georg Chmiel, tracked the prices for rentals and sales based on surveys from Thai real estate agents at the beginning of 2020, with prices expected to drop first, before climbing back up by the end of 2021.
It is to no surprise that the residential prices and rental rates for nation-wide properties in Thailand would be on the decline for 2020. The forecast for rentals is generally negative, with a huge dip, as foreign buyers and renters account for a lot of the transactions in the market. The largest percentage swing is met for residential prices in Bangkok with prices dropping to as low as 4.9% decrease with hopeful recovery at a 7.4% increase in 2021. Chiangmai, however, is forecasted to grow even more significantly at 12.8%.
Looking at customer segments on real estate, data shows speculation on buyer transactions for year 2020. According to surveyed property agents, foreign buyers will account for most transactions nation-wide. 42% of agents believe that foreign buyers will increase in Bangkok and in Chonburi, while 35% of agents believe foreign buyers will increase nation-wide when compared to 2019. Nonetheless, following these trends, with current real estate prices on the decline, it could be seen as an attractive investment opportunity for both domestic and foreign buyers.
Credit: Juwai