Despite the current political unrest and economic slowdown, Bangkok’s secondhand home market continues to expand, with growth concentrated in specific locations, reports The Bangkok Post.
Housing demand remains strong, while new supply is in decline as many developers have scaled back on projects this year. This has boosted interest in the already-robust resale market, which should enjoy growth of over 15 percent this year, said Voradet Sivatachanon, president of ERA Franchise (Thailand). In addition, many financial institutions have set a higher target for new home loan releases this year, encouraging further market growth.
The top locales for secondhand property include the inner city, where resale condos are the most popular as they are considerably cheaper than newly launched units; areas such as Bang Bua Thong and Bang Yai along the MRT’s Purple Line (that is currently under construction); and Ram Intra Road-Min Buri, which is served by a newly completed transport network.
Last year, growth in the secondhand market was driven by the condo segment that included units priced between THB 1 to 4 million. This accounted for 60 percent of the market, followed by townhouses, which comprised the remaining 40 percent.
Taking a more cautious outlook, Somsak Muneepeerakul, president of the Real Estate Broker Association, said political problems would have a negative impact on the resale market, as buyers will delay making decisions. Market performance will also be sluggish if political problems persist and business slows down in the first half of the year.