The property market heaves a sigh of relief, but consumers are still delaying their buying decisions
According to DDproperty, Thailand’s property market in the first quarter of 2021 still promises various golden opportunities for investors and buyers in terms of prices and low-interest rates.
The Housing Price Index in Bangkok has declined from 201 to 197 points, a two percent decrease from the last quarter and the lowest recorded Price Index since Q2 2018.
High household debt, economic downturn, and the massive new COVID-19 wave has led buyers to delay their purchasing decisions. Hence, price wars between developers have risen to lure buyers and speed up their buying.
Districts with the highest Price Index growth are those located near BTS stations such as Bang Khen district, which increased by seven percent. Lat Phrao district grew by six percent, as well as Lak Si district.
On the other hand, the Supply Index is down approximately six percent from 385 to 363 points, as a result of developers delaying new project launches from prolonged consumer decision-making. The market yet remains optimistic for investors actively seeking in this low-interest-rate environment, plentiful with promotions and discounts.
Locations that have experienced the highest supply decline from Q4 2020 are typically in central Bangkok, particularly Wattana district. Phra Khanong Nuea, Khlong Tan Nuea, and Khlong Toei Nuea subdistricts saw huge supply cutbacks by 19, 16, and 15 percent, respectively.
Price segments that currently dominate the market are the THB5 million (USD167,389) to 10 million segment, the THB3 to 5 million segment, and THB1 to 3 million segment.
The THB1 to 3 million seemed to attract the most attention, but the THB10 million experienced the highest consumer interest growing by seven percent.
“This shows that lower-middle-class consumers are delaying buying decisions during this period especially for properties in the THB1 to 3 million segment, while consumers with higher budgets and stronger purchasing power are showing interest in buying and investing in property. Overall, however, most consumers are still delaying decisions to buy property,” said Kamolpat Sawaengkit, country manager of DDproperty.
Investors and sellers should recognise changes in consumer behaviour and needs when selling or renting out their properties. Preferably, they should defer selling for a higher return in the future, as there are many promotional campaigns such as free interest rates or free maintenance fees.
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