Market Trends of Residential Real Estate Industry in Thailand
This section covers the major market trends shaping the Thailand Residential Real Estate Market according to our research experts:
Bangkok and Vicinities Witnessing Growth in the Residential Sector
Bangkok and vicinities are experiencing notable growth despite the declining market during the COVID-19 pandemic.
This growth is supported by most of the projects in Bangkok suburbs and vicinities are affordable to the majority population ranging from middle class to high class. Furthermore, growth is supported by the easy availability of transportation facilities through the expansion of the Bangkok Mass Transit System (BRT) and Mass Rapid Transit systems (MRT) in Bangkok.
Furthermore, Bangkok and the vicinities are experiencing significant growth in the housing sector, which is supported by growth in the Thai economy, greater investment in infrastructure megaprojects, government stimulus measures targeted at the real estate sector, and strong demand for accommodation from overseas buyers investing and working in Thailand.
Moreover, in 2021, Bangkok and vicinities accounted for a greater number of housing units registered by 96,630 units and new launches by more than 43,000 units in the country. Most of the transaction volumes in Bangkok are contributed from condominiums, followed by detached houses and townhouses.
Low-rise Housing Witnessing Lucrative Growth
Low-rise housing had robust growth in the country, supported by developers' interest in shifting trends. This was triggered by increasing demand for single-detached homes and townhomes from end users. Furthermore, the low-rise housing sector was resilient in 2020 despite the pandemic affecting the residential market.
In addition, the demand for this sector is driven by dynamic customer perspectives, which include the location, size, design, and functionality of the projects in the country. Moreover, the southern region is showing dominance in Thailand's low-rise housing projects, which occupied a greater construction area of 2,313,867 square meters with an 8% Y-o-Y growth in 2020.
Many developers like Sansiri, Habitat Group, and Supalai are shifting from condominiums to low-rise housing. For instance, Sansiri launched 19 low-rise housing projects in 2021, which accounted for more than THB 21.9 billion. In addition, Property Perfect PLC is launching 15 low-rise housing projects accounting for THB 26.2 billion, focusing on super luxury and upper-end segments and middle-end segments.
