The post-election property market for both residential and commercial property should boost long-term confidence for investment and real demand, according to Nexus Property Marketing Co Ltd.
The first quarter of this year saw more stability in both the residential and commercial property markets, the company’s managing director, Nalinrat Chareonsuphong, said.
According to the survey, the condominium market in Bangkok in the first quarter of 2019 saw an additional supply of 11,300 units from 30 projects, decreasing 20 per cent from the same period in 2018.
The locations with the newest supply were Phra Khanong, Suan Luang and Baring (2,400 units, 21 per cent), followed by Phya Thai and Ratchadaphisek (1,938 units, 17 per cent) and Lat Phrao and Wangtonglang (1,580 units, 14 per cent).
The overall picture of the condominium market saw several changes. A majority of the new supply in the first quarter were city condominiums with the price not exceeding Bt75,000 per square metre and the mid-market with the price not over Bt100,000 per square metre, representing up to 75 per cent of total new supply (approximately 8,500 units). Developers have changed their direction for their development, focusing more on products that match real demand in the market.
Most of the demand this year is predicted to come from real demand due to the loan-to-value measure and stricter loan approval, while city condominiums and mid-market are the most attractive for real demand. The high-end market needs to be cautious this year, as it could be impacted by fewer Thai investors. The average price in this market should surge not more than 5 to 6 per cent, she said.
For commercial real estate, Teerawit Limthongsakul, managing director of Nexus Real Estate Advisory, said that the office and the retail market had not been much affected by the election. The election is a positive factor in stabilising the property sector.