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Thailand’s property sector braces for possible turbulence as interest rates are set to rise during this month but demand for the sector continues to remain sustainable albeit the areas in demand continues to be in 5-key areas.
During the 1st six months of 2022, demand for residential property saw Ladprao area as one of the most searched areas for homebuyers, according to Kaidee Property, an online real-estate search engine.
Kaidee Property, an online platform for buying and selling real estate for both first-hand and second-hand in Thailand, revealed the Thai real estate insights from visitors of the website from January to June, or the first half of 2022, indicating that the most popular locations were.
Top 5 Popular Areas
The top 5 most searched areas are all in the Bangkok area:
- Ladprao district
- Chatuchak district
- Bang Khae district
- Suan Luang district
- Lat Krabang district
These areas are considered residential areas for Thais rather than foreigners. The areas were equipped with utilities, convenient transportation, surrounded by shopping malls, business districts, and are not too far from the industrial area.
Latest Land Appraisal Price raised in line with demand from homebuyers
This information is consistent with the latest year’s land appraisal figures that showed Ladprao, Bangkok, increased by 38%, followed by Chatuchak, Bangkok, 36%, Bang Khae, Bangkok, 14%, and Suan Luang, Bangkok, and Lat Krabang, Bangkok, each, increased 11%.
Rising Interest in Detached House
Top 5 types of real estate that received the most attention, as measured by the number of visitors on the Kaidee page:
- Detached house is the most attractive with a total number of page views of 110 million.
- Condominium 91.2 million page views
- Land 56.1 million page views
- Townhome 49.2 million page views
- Commercial area 10.3 million page views
This is in line with the trend of housing purchases after the Covid-19 situation where the market turned its attention to the detached house more than condominiums as people are starting to prefer residents with a larger living space.
In addition, the new trend as a result of the pandemic allowed people to work from home than from the office making it unnecessary for working people to travel to the city every day.
The Price of Popular Houses and Condominiums
From the number of real estate prices that have attracted attention, it was found that detached houses were most looked at, with the price level of not more than 4,500,000 Baht, and the price for renting not more than 25,000 Baht.
While the condominium price that gets the most attention will be no more than 1.35 million Baht, the rent price will be no more than 10,000 Baht.
In terms of townhomes, the price for the purchase that is most searched for will be no more than 2,500,000 Baht, and the price for renting will not exceed 7,000 Baht.
All of which are in the main class and economy class real estate, which is a group that the Thai people would buy for their own living (Real Demand), not the type of investment by investors.
Top 5 New Locations with Highest Supply
These are 5 areas with an increase in real estate supply as measured by the number of properties renting and selling on the platform:
- Khlong Toei District, Bangkok
- Watthana District, Bangkok
- Pattaya City
- Bang Lamung District, Chonburi
- Phra Khanong District, Bangkok
All of them are areas that are popular with foreigners, especially Europeans. As the real estate supply in the area has increased, it shows that foreign demand in the area has not yet returned, so it will be closely watched in the second half of the year for positive changes after the government has opened the country and gradually relaxed the Covid-19 policy to prepare for the transition of the Covid-19 to endemic disease.
Interestingly, there is also a trend of demand from the China market, from a group of parents that have been affected by the policy of improving the curriculum of international schools in China as required by the government causing those Chinese people to look hard in buying housing in the international school district in Thailand.