Investment Insights

Weekly Thailand Property News Update , EP 1 , 2023

BY Kittipong Kongthanarung

1.The land in the Rama9- Ratchada is now hot property where pushed land prices to rise to as much as 2 million baht per square wah.

The land in the Rama 9 – Ratchadapisek area along the MRT Blue Line subway route has heated up once again as Big Capital, a major real estate development company, has dusted off the land and started developing the Mix-use project vigorously, taking advantage of the COVID situation as the country’s economy begins to recover.

As countries around the world open up and travel returns to normal, particularly China buying land, the aforementioned area has seen a surge in land prices reflected in the new land appraisal prices for the years 2566-2569, which have increased by over 20-30%.

Moreover, if the Orange Line East Extension of the Mass Rapid Transit system opens, it will provide even more positive momentum to this area, which will become a hot spot for development, especially around the Thailand Cultural Centre station, the interchange station between the Blue and Orange Lines, which will become the largest underground transit hub in Thailand in the future.

For more information :  https://www.thansettakij.com/real-estate/555694

 

2. Thailand’s tourism expected to recover in 3 years with another 10,000 new hotel rooms opening.”

CBRE predicts a good recovery in the Thai hotel industry after Chinese tourists return quickly, with the expectation of 10,000 new hotel rooms being added by 2025. Bangkok’s hotel market is growing by 12% amid high competition, while budget hotels are improving their occupancy rates. Mr. Attapol Kongsakul, the Head of Hotel Business Department at CBRE Thailand, stated that at the end of 2022, we saw a significant improvement in the tourism sector, and in 2023, it continued to be positive. The market has benefited from the better performance of hotels and the increased number of foreign tourists coming to Thailand, as well as the support from the fact that Chinese tourists can return to Thailand faster than expected.

Although foreign tourists are returning, the government still places importance on maintaining domestic tourism, with campaigns to promote domestic travel within the country. Hotels need to continue to develop continuously since hotels that are still in operation can reopen.

CBRE’s research department expects that there will be more than 10,000 new hotel rooms entering the market by the end of 2025, resulting in an increase in hotel room occupancy in Bangkok by 12%.

For more information : https://www.thansettakij.com/real-estate/557113

3. 5 locations with the highest increase in rental prices in Thailand the real estate market 2023

DDproperty (DDproperty) has released its Thailand Property Market Report Q1 2023, which highlights trends in the residential market. The report found that rental demand increased by up to 124% compared to pre-pandemic levels, indicating that the trend towards renting is more popular than buying.

Due to consumers not having enough money to use for property purchases and the flexibility of renting being more suitable for current lifestyles, the rental market is growing. High interest rates and the uncertain global economy have made Thai consumers more cautious about spending, especially for high-priced and long-term mortgage payments for residential purchases

Rental prices in Bangkok according to locations along the skytrain route.

The locations with the highest increase in rental prices during the quarter were mostly along the new or already operational skytrain routes, as well as large employment centers. These areas include:

  • Saphan Khwai, which saw a rental price index increase of up to 168% QoQ (213% YoY), benefiting from the Orange Line Mass Rapid Transit (MRT) project and the upcoming opening of the Culture Center-Min Buri (Suan Siam) route in 2024.
  • Nong Khaem, with a rental price index increase of 23% QoQ (6% YoY), located on the Thonburi side that connects to the city center conveniently via the Blue Line MRT, Hua Lamphong-Bang Khae, and will also have a Blue Line extension from Bang Khae to Phutthamonthon Sai 4 in the future.
  • Bang Khun Thian, with a rental price index increase of 6% QoQ (1% YoY), although not located along any skytrain routes, it is near large employment centers in the Phra Ram 2 area.

In addition, central Bangkok areas also became attractive locations with an increased rental price index in the past quarter, reflecting the returning demand to rent in these areas, including:

  • Pathum Wan, with a rental price index increase of 4% QoQ (3% YoY)
  • Khlong Toei, with a rental price index increase of 3% QoQ (2% YoY)
  • Ratchathewi, with a rental price index increase of 3% QoQ (1% YoY)
  • Watthana, with a rental price index increase of 3% QoQ (1% YoY)

For more information : https://www.thansettakij.com/real-estate/557131

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