Bangkok’s new mass transit networks plays a part in the market outlook for next year.
As we draw to the end of the year, we can look back at the property market for 2016 and forward to what is to come in 2017. Developers faced a relatively tough year thanks to a combination of factors that included the government sponsored property tax incentives at the beginning of the year and the pushing forward of project launches from the back end of 2016 to next year.
Data released from Colliers International estimates that 40,000 new condominium units in Bangkok were launched in 2016 and approximately 13,000 units for new housing projects. The supply of units in the condominium market decreased in the final quarter for 2016 as a direct result of the overall slowdown of Bangkok’s market, when typically this time of year sees transactions being pushed through in time for the year end.
For the same period real estate firm Edmund Tie & Company saw a slight decline in the take up rates of newly launched condominiums. This was as many developers halted their sales and marketing activities during this time of national mourning of His Majestic the King. Edmund Tie & Company state that launches were down by nearly 60 percent if compared to the previous quarter.
Despite this intended slowdown, the average asking price nudged up slightly by 0.2 percent if compared to the same period the previous quarter. This is however an increase of 13.2 percent year-on-year proving how property in Thailand is a lucrative investment.
The market looks positive for 2017. Sukhumvit is predicted to continue its reign as the most popular destination in Bangkok for new developments. Developers are anticipated to resume launches but next year there will be a particular focus on the areas dotted along the future mass transit networks. The Pink, Yellow and Orange lines are due to start construction in 2017 and a flurry of activity is anticipated as developers and investors capitalise on this development.
Property situated along Bangkok’s mass transit networks have great appeal and warrant the most growth. This expanding of the infrastructure may also boost the nation’s gross domestic product that is currently projected to expand between 3.1 and 3.15 percent in 2017.