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Thai Real Estate Market: Challenges and Resilience Amidst the Pandemic
Apr 16, 2024
Thai Real Estate Market: Challenges and Resilience Amidst the Pandemic Bangkok
By   Internet
  • City News
  • Thai Property
  • Thai Real Estate Market
  • Real Estate Challenges
Abstract: As the global pandemic sweeps through, economic systems face unprecedented challenges, and the real estate market is no exception. Thailand, as a popular destination for tourism and real estate, has garnered particular attention regarding its market dynamics.

Looking back over the past few years, the land price index in Greater Bangkok has shown a consistent upward trend. From 96.5 points in 2012 to 293.3 points in January 2020, the land prices nearly tripled, showcasing the immense potential of the Thai real estate market. Even during the pandemic, this growth momentum remains strong, demonstrating the resilience and risk resilience of the Thai real estate market.


Analyzing the data on year-on-year (green line) and quarter-on-quarter (yellow line) basis, we can see that the Thai real estate market exhibits a relatively stable growth trend. This stability implies that the rise in land prices is sustainable and predictable, providing investors with more confidence.


Thai Real Estate Market: Challenges and Resilience Amidst the Pandemic

Internet


In the index chart of property prices over the past decade, we can clearly observe a continuous upward trend in Thai property prices. Despite a slowdown in the pace of price growth during the pandemic, the overall market remains stable. Particularly notable is the significant increase in apartment prices (red line) among various property types, further highlighting apartments as investment hotspots.


Statistics from Thai banks show that since April 2022, the property price index has continued to rise, breaking through the 150-point mark. This indicates the vibrancy and resilience of the Thai real estate market.


In the price regression curve, we observe a relatively stable trend with minimal fluctuations in property prices. This implies that the growth trend of the Thai real estate market is very stable, further confirming its growth potential.


Thai Real Estate Market: Challenges and Resilience Amidst the Pandemic


Internet


However, the most attractive aspect of the Thai property market lies in rental yields. According to statistics from the World Property Guide website, the rental yields in some major cities in Thailand in 2023 are quite substantial:


- Small apartments in Bangkok, such as studios and one-bedroom units, can yield rental returns of over 5%, while larger apartments have slightly lower returns, around 4%.

- The average rental yield in Pattaya reaches 5.51%, while in Hua Hin, the rental yield is 5.56%, and the overall investment return in Phuket is as high as 6.77%. Some large apartments even have rental yields exceeding 10%. This is mainly due to the impact of the international situation, with a large influx of Russian families into Phuket leading to a surge in demand for large family apartments, thereby driving up rents.

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Thai Real Estate Market: Challenges and Resilience Amidst the Pandemic
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