The appeal of resale market is growing thanks to the spiralling prices of new projects.
Bangkok’s second hand residential market is receiving a lot of attention of late due to a combination of market factors. A section this is often pushed to the wayside as shiny new projects are preferred due to the region’s love of owning something brand new. However, the tables could be about to turn.
Firstly Bangkok’s land prices are still heading in an upwards direction. This is putting pressure on developers forcing prices up to ensure profitability. Hence many are focusing on producing luxury projects which are warranting impressive figures. Such as the new record set at The Residences at the Mandarin Oriental achieving THB 620,000 per square metre.
A stretch of Bangkok that has been receiving unprecedented attention of late due to the availability of land and the new desire to live on the river. From Rama III Bridge heading towards Phra Pin Klao Bridge there has seen a string on new projects being launched. Prices have been responding accordingly and over the last three years launch prices have hiked by 44 percent.
Affordability.
This is leaving a gap in the market for those seeking properties outside of this bracket hence giving the second hand market another look in. According to reports properties can be anywhere between 26 and 44 percent cheaper in the resale market, quite a marked difference in price. This comes at a time when new projects situated in prime locations have been increasing in value on average by 10 percent between 2014 and 2016. In some areas of the city this is only the tip of the iceberg.
As interest remains in central Sukhumvit values have continued to climb by 25 percent. This rise pushes many out of the market who are wanting to live in this popular part of Bangkok, however the area is brimming with accommodation choices. Whilst previously investors have shied away from the resale market many are now starting to see the attraction in second hand stock. The cheaper price tag, bigger floor plates, not to mention tending to have a big space for facilities too. In many Western nations there is a desire for older buildings due to the characteristics they have. Plus they tend to increase in value more.
Thanks to increasing property prices for Bangkok’s new projects could this be about to happen in Bangkok too?
If you are looking to take advantage of the price differentiation of Bangkok’s resale market then have a look at Thailand Property’s comprehensive listings found online here.