Investment Insights

Thailand’s Real Estate Market to Improve in Second Half of 2020

BY Bridge Estate

Real estate markets around the world have felt the impact of COVID-19 pandemic, and Thailand is no exception. Its condominium market, popular among foreign buyers in the region, was experiencing slight setbacks because of the fallout over US-China trade tensions and the strengthening Thai baht in 2019. The peak of the pandemic in the first and second quarter of 2020 saw widespread travel restrictions globally, preventing the closing of sales to foreign buyers and further exacerbating the situation.


Residential (condominium) property sales are looking to improve in H2 2020
However, the country’s excellent management and curbing of the virus spread without extended disruption to the economy has impressed many, and real estate agents have observed an increase in the number of enquiries for Thai property at the start of the second half of 2020. Thailand has cemented its position in the region and globally as a safe and stable place to invest and live, invest and travel in.


The gradual lifting of movement and travel restrictions in the second half of this year within Thailand and in the region also spells good news for real estate developers, as confidence returns among investors.


Developers have turned their focus to selling their unsold ready-to-move properties and completing existing projects, before launching new ones, to limit the competition. Attractive discounts and flexible payment options, coupled with the lowered interest rates, have also been encouraging demand among buyers in the real estate market. Foreign buyers from countries like China that have brought the virus situation under control have had more time to consider various offers and are ready to make purchase decisions.

Wider international travel is expected to open in the later part of this year as more countries successfully curb the virus spread, and the resumption of business and leisure travel is expected to boost demand even further for Thai property.

Political turmoil in countries like Hong Kong and China is another push factor for investors to look towards Thailand as a safe haven for a more stable future.


What are buyers looking for in a home post-COVID-19?
The new normal that the pandemic has brought about has changed the way we live, work and play. As more people spend time at home, their needs for their living spaces have also evolved.


Working from home long-term is one of the biggest lifestyle changes that people around the world have had to make. As such, buyers will be looking for homes that can provide conducive environments and infrastructure for both work and living.


Homes in neighbourhoods outside metropolitan areas are also seeing an increase in demand with working from home being the norm, as staying near the office is not as much as a priority for some. In Bangkok, the slated transport route expansion outside the metropolitan areas also has buyers focusing on value related to usable space instead of just location. Concerns about population density is also another reason why homebuyers might look outside of popular and central locations.


Understandably, the pandemic has increased the health consciousness of everyone. Homebuyers will increasingly consider home specifications that help to advance their health and convenience, such as usable area, air quality and other complementary technologies that can help facilitate that.


Developers will also need to re-evaluate their current offerings for residents and consider whether they still fulfill the needs of the post-COVID-19 home buyer. The state of the post-COVID-19 economy and world is still highly uncertain, but there are still some silver linings in the near future.


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