Keep the pulse of the real estate market with prices under 3 million still dominating the market Property Inside Column: Surachet Kongcheep, Managing Director of Property DNA Co., Ltd. (Property DNA)

The condominium or housing market in 2023 has expanded in a better direction than in 2022 because of many positive factors that have improved. Especially in terms of economic growth that has a definitely better direction compared to the past 2-3 years because of COVID-19. That relieved a lot of anxiety.

In addition, the matter of tourism, which is an important machine in Thailand, slowly returned to progress. 2022 was the first year in the past 2-3 years that there were more than 11 million foreign tourists, who were tourists from various countries. for the first time in several years without Chinese tourists

Although the number of tourists is still less than during 2019 But it's clearly more than the year 2020-2021, which is considered a gradual return to normalcy. People working in the tourism business, be it hotels, accommodations, restaurants or services. Associated began to return to income. or start expanding the business again

Definitely positively affecting the real estate business, although in 2023 there may still be a negative factor in inflation caused by an increase in oil prices. Conflicts in different regions of the world and economic slowdown in many countries may affect Thailand's exports. which began to see a slowdown since the end of 2022

If the slowdown continues and increases, it will affect the economic growth of Thailand in 2023. Because Thailand exports quite a lot of products to foreign countries. And if the economy and inflation in many countries are not improving, it may affect the tourism business of Thailand as well.

The affordable housing market, or housing priced no more than 3 million baht per unit, is still a market that developers are interested in. And it's a group of price levels with the largest buyer base on the market. It is still a market that expands in terms of launching new projects. and purchasing power continues well from 2022

Entrepreneurs continue to sell projects priced no more than 3 million baht in Bangkok and its vicinity. Condominiums or affordable homes are the largest category of housing that fits the purchasing power. Because most people have the power to buy housing at a price that is not very high. And the price level of no more than 3 million baht per unit seems likely to respond to the main purchasing power of Thailand.

When the economic situation in 2023 Still not in a state that can be said to recover clearly and there are still risks The fact that entrepreneurs themselves want to continue to launch new projects continuously. to maintain sales of income and operating results in 2023 and beyond Launching sales of projects in line with purchasing power

Most of them are the best solution. and most consistent with market conditions which can be seen from the year 2022 That entrepreneurs open to sell projects in the price group below 3 million baht is quite a lot. Especially projects in the price range below 2 million baht per unit.

Including talking about expanding the scope of housing prices according to the BOI's investment promotion criteria to 1.5 million baht per unit, which seems to be in line with the direction of the expansion of the affordable housing market.

Outer Bangkok is still of interest to most entrepreneurs because of the emphasis on opening new projects at affordable prices A location that can be developed must be a location in the outer Bangkok area. or location along the electric train route under construction with plans to open for service in 2023 or after Because the price of land can still be able to develop affordable projects.

In which some locations may receive special attention from both entrepreneurs and buyers, such as

area around a large university

Areas around large work sites such as industrial estates

Including areas that are old communities that have continued to expand in population over the past several years. and not far from the electric train line

Thonburi area There will be more new condominium projects launched for sale. Because the development of the Southern Purple Line Project And the remaining supply in many locations has decreased compared to the last 2 years. Areas along the Blue Line electric train line certainly have more new condominium projects launched for sale.

Expensive residential projects, or those with a selling price of more than 25-30 million baht per unit, are still more housing than condominiums. which is a continuous expansion from the past because the demand still exists While the competition in this market is not very high There are only a few developers that can sell projects of this level continuously.

It is also accepted by buyers of housing at this price level. Many projects that have been launched for sale in the past 2-3 years have been sold out in no time. And the entrepreneur still has a list or knows that there are people who have expressed their intention to buy a house at this price level. from the sale of previous projects

Including having a list of people who really want to buy But stuck in a problem in the previous project. These groups of buyers are expected to be able to return to be buyers in new projects in 2023. Therefore, the housing market in the price range of 25-30 million baht per unit or more continues to expand. while condominium projects with expensive sales prices Or condominiums with a selling price per square meter of more than 300,000 baht or more.

There are still not many projects open for sale like in the past. And the location for sale of this type of project must still be located around Lumpini Park only. to get attention Or if it's far away, there must be a distinctive project style. and unique or is the most unique project format

Source:https://www.thansettakij.com/real-estate/554234

Date 26/1/2023