It is important to look at numerous factors in order to understand Thailand property investment in 2022. On one side, there are opportunities available as prices have yet to recover to pre COVID-19 levels. On the other hand, the real estate market as a whole is dealing with significant uncertainty.
The Bank of Thailand had predicted economic growth of 3.4 percent this year, but the Omicron outbreak could see that eventually be revised. Especially considering the reopening of tourism has been finalized just yet.
However, the situation isn’t all bad. Far from it, in fact. Specific developers and projects reported record sales last year and activity will continue. Here are a few things to know if you are thinking about Thailand property investment in 2022.
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4 things to know about Thailand property investment in 2022
Uncertainty about Bangkok condo launches
Colliers International Thailand surprised many when they predicted that new condo supply launched in Greater Bangkok would grow by 28.5 percent in 2022. According to the consultancy, new launches will be driven by affordable projects in suburban locations. This would be the first increase in three years.
However, sources in the Thai construction industry told Dot Property Group that they are not expecting a large increase in demand due in part to a lack of new condo launches. It remains to be seen just how this will play out over the course of 2022, but the situation bears watching.
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The year of the megaproject
Work continues on countless megaprojects across Bangkok with these driving Thailand property investment in 2022. Sales at The Forestias, MQDC’s flagship development, soared last year with the opening of the project’s showroom. Demand for residences in the award-winning mixed-use estate is likely to carry over into this year.
If you have driven by One Bangkok, you will notice buildings are rapidly taking shape. While residential sales have yet to begin, they could launch sometime this year. Units have hit the market over at Dusit Central Park with CPN working on the redevelopment of the historic Dusit Thani hotel site.
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Finally, progress is slowly being made on Bangkok Mall which will be the largest shopping center in Southeast Asia once opened. The project is also expected to have a residential component with serviced residences the most likely option.
Completed projects preferred
For years, off plan projects dominated real estate sales in the Kingdom. That looks to be changing and Thailand property investment in 2022 will be led by completed projects. This is evident in tourist destinations, such as Phuket.
According to CBRE, buyers in these areas are after ready-to-move-in properties that they can view immediately. One reason for the change in preferences is that it allows them to use the property as a safe haven should the pandemic worsen.
Don’t expect reforms
Both The Board of Trade of Thailand and the Real Estate Information Center urged the Thai government to improve foreign condominium ownership rules last year. Despite these calls, it remains to be seen if action is taken with some proposals having already been rejected.
Simplifying money transfer requirements is arguably the most pressing item on the agenda. Currently, a foreign national is required to transfer money to Thailand from overseas in their own currency. Once that is completed, the buyer must then declare or show a foreign exchange transaction certificate to the Lands Department. This is required even if the buyer owns a business in the Kingdom or is married to a Thai spouse.
It is extremely convoluted and an unnecessary detriment to overseas property investors. However, the government has a number of other items on its to-do list, including the launch of an improved Smart Visa for skilled overseas workers and attracting more foreign business investment. It is possible they delay condominium ownership reforms for later and opt to work on these instead.
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