The Housing Business Association forecasts that the property industry in Thailand could increase by 5 to 10 percent in 2016.
Atip Bijanonda, president of the Housing Business Association, cites smaller schemes such as single houses and townhouses as contributing to the increased property values as there is a shift in buyer’s demand for property type.
Whilst property is fast becoming the asset choice for consumers in Thailand, there has been increased interest for townhouses between THB 2 – 3 million since the last quarter of 2015 according to the Thai Condominium Association. Condominiums within the vicinity of mass transit networks continue to be attractive, but they are now in competition with townhouses in the THB 10 million plus price bracket that are also located close to transport but with a lower price tag.
Developers are adapting to demand
The property tax incentives, which expire on the 28 April, should help speed up transactions for any unsold inventory in Greater Bangkok. However in the capital, supply has decreased over the last few years, rising 2.7% in 2015 compared to 16.2% in 2014 and 11.8% in 2013. Developers should take heed of the changing market, and consider smaller developments that can be built and transfer quicker compared to high rise condominiums in order to keep on top of inventory.
“Property developers should keep an eye on the market trend, diversify to single house and townhouse development, especially in provinces, focus on the middle to lower end segment, continue improving products to differentiate and consolidate brands to save marketing costs”, comments Chartchai Payuhanaveechai, the president of the Government Savings Bank.
