Catch the real estate trend: 'raised-level condos' are hot! Luxury homes It is also the goal of developers to create income and reduce risk. While offices overflow 500,000 square meters, indicating an oversupply effect! Geopolitics encourages land purchases in industrial estates to hit record highs in 5 years, pushing warehouses and logistics up.

Key Points:

In 2024, the residential real estate sector still has to rely on the purchasing power of Thai and foreign millionaires, creating a trend of one floor one unit or elevated condominiums in the luxury market.

Meanwhile, “detached houses” are still the target of developers.

Office buildings (offices) are at risk of oversupply after new supply is about to surge in by another 500,000 sq m.

Effect! Geopolitics supports the purchase of land in industrial estates, breaking records by as much as 5,600 rai in the past 5 years, pushing up the warehouse and logistics business due to demand from investors to move production bases.

Phattharachai Thaweewong, Director of Research and Communications, Colliers Thailand, said that in the past 2023 real estate market overview, the condo market supply figure was at 30,000 units, lower than expected. which is estimated at 40,000 units due to major developers delaying project openings The upper middle segment is still good. As for the price below 100,000 baht per square meter, "stable" because of the problem of high loan rejection (rejection rate), causing demand at the end of the year to "reduce" but real demand in the country still continues. Because it is a purchase for living.

With 70% market share coming from large developers. Because they have more budgets for project development than medium and small companies. Because you can issue bonds Or it's easier to do a lonely project. This is the same trend as 2024 where large operators will continue to be market leaders from such advantages.

“Due to the postponement of project launches last year, in the first quarter of 2024 there will be a large number of project launches, resulting in a high increase in supply along with an increase in prices.”

But what is interesting is the one floor one unit trend in the luxury condo market. It is found that the sales rate of condos that offer large units for sale. There will be a fast sales rate. As for the single house market Demand continues to be popular. There was a growth rate of 2.4% compared to the same period last year.

and the location of luxury homes has expanded into the eastern zone. As for the townhouse market, it "decreased" compared to the previous quarter. The selling price continued to decrease for the third quarter, with most demand being at the price level of 2 million baht.

As for the middle-high-end single-house market, prices range from 3 -10 million baht and up. Clustered in 3 main districts, Khlong Sam Wa has quite a lot of middle- and upper-class products. And although demand from investors has decreased, people who buy to live in still want houses that have value for money (Value for Money), but townhouse development has decreased and is concentrated in the Saphan Sung area. Because entrepreneurs turned to developing single-detached houses instead.

As for retail, there was a large supply coming in at the end of last year, namely The Emsphere shopping center in the Sukhumvit area. Retail trends in Bangkok will not increase. This is because entrepreneurs turn to develop projects outside of Bangkok, such as Nakhon Pathom, Nakhon Sawan, Krabi, etc.

The office building market in 2024, if the project launch is not postponed, will have an increase in supply of up to 500,000 sq m!! Coming from "One Bangkok" (One Bangkok), a mixed-use project covering an area of 104 rai and Dusit Central Park, a mixed-use project covering an area of more than 23 rai, causing higher competition. The owner of the area is trying to attract customers. By reducing rent At the same time, the tenants of the space are looking for a new office. that responds to work needs that have changed from before that is smaller

"Grade A office rental rate minimum 1,000 baht per square meter per month. As a result, new offices that are created will state that their offices are Grade A Plus. To differentiate itself from Grade A offices that are old buildings. The price is set at a high price of 1,200-1,400 baht per square meter per month."

But what is worrisome is the increase in supply this year to 300,000 sq m, combined with the supply that was postponed to open another 200,000 sq m, for a total of 500,000 sq m, while the absorption rate is only 180,000-200,000 sq m will become a big problem in the office building market. The price cannot be increased. While demand is the same Just move from the old place to the new place.

The hotel sector in 2023 had 28 million tourists arriving with an average annual occupancy rate of 75%, higher than before COVID-19. Major tourist groups include Malaysia, China, Korea, Russia and India. It is expected that this year there will be up to 31 million tourists, pushing hotel occupancy rates up to 80%.

While real estate For the warehouse and logistics industry It's an upward trend. Due to continuous demand from investors from Asia This has caused many developers to break records in trading warehouses and land at record highs in the 4th quarter of 2023 due to the driving force from the electric vehicle (EV) and automotive parts industries. Various consumer industries in selling land to Chinese, Korean, Japanese investors

“It is expected that in 2024 there will be a group of investors who are interested in continuously buying. Including income from warehouse rental and logistics services. This is partly due to geopolitical effects. (geopolitics) China and Taiwan cause the production base to move. Come to Thailand and Vietnam.”

In the past year, there were up to 5,600 rai of land traded in industrial estates, considered the highest sales in the past 5 years before Covid, with some months having sales exceeding 1,000 rai. It is considered a sector that is worth keeping an eye on. Because there is constant demand from Chinese and Japanese investors.

“Trends for 2024 are another year where real estate developers must face challenges Therefore, entrepreneurs must adapt in order to prepare for unpredictable things. Because customer behavior has changed There are more complex needs.”

Source:https://www.bangkokbiznews.com/property/1112210

at 8/2/2024