Investment Insights

Weekly Thailand Property News Update , EP 3 , 2023

BY Kittipong Kongthanarung

1.Private sector pushes the government to rethink, foreign laws buy real estate in Australia, pulling in Chinese buyers and igniting “GDP”.


The Real Estate Information Center (REIC) has revealed that currently the size of the real estate economy in Thailand is significant, accounting for 9.7% of the country’s GDP. The development of real estate has created multiplier effects for the economy, as it is related to other industries such as water, transportation, and construction, leading to production and job opportunities.

However, Mr. Wichai Viratapan, the REIC’s managing director, pointed out that this machinery is currently weak due to uncertain economic conditions, high interest rates, and inflation, which could cause the real estate market, especially residential property, to decline by up to 14.1% this year. The total value of property transfers is approximately 9.15 trillion baht, some of which came from the previous year when the market was doing well.

During the recovery period of the Thai tourism industry, with the return of foreign tourists, the real estate industry and tourism will be a new opportunity to boost both the residential market and the future of the Thai economy. There are opportunities for both the purchase and long-term rental of residential properties as well as short-term rentals. “When tourism is good, the real estate market will expand.”

Comparing the first half of 2022, when Thailand opened up, and the period after the lifting of travel restrictions worldwide, the value of foreign property transfers increased from 3.9 trillion baht in 2021 to 5.9 trillion baht. Bangkok, Chonburi, Phuket, Chiang Mai, and Samut Prakan were the top five provinces with the highest foreign property transfers.

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2. The retail space is bustling after the easing of COVID restrictions in Bangkok, with a growth rate of over 53% to 125,500 square meters. By the end of 2022, 6.7 million square meters of retail space had already been opened.


Although retail space projects in Bangkok have become more active in 2022, there are still many vacant areas in many projects in all areas of Bangkok, including several large shopping centers in the city center. This includes the CentralWorld and many other large shopping centers in the heart of the city.

In addition, community malls or hypermarkets in the outskirts of Bangkok still have vacant spaces for rent. The improvement of rental spaces within shopping centers in the city center has been evident throughout 2020-2021, and in 2022, vacant rental spaces, including those that were previously closed for improvement, have begun to reopen.

According to an analysis by “Property DNA”, the accumulated retail space in Bangkok at the end of 2022 was approximately 6.7 million square meters, and new retail space of approximately 125,500 square meters was opened, 53% of which were in shopping centers and 33% were in specialty stores.

Stores that sell home decor products account for only 13% of community malls. This indicates a decrease in community malls that have continuously opened for more than 10 years.

Several retail space projects are currently under construction and will be opening in the future, with the majority being shopping centers accounting for approximately 80% of the retail space set to open between 2023-2025. Meanwhile, community malls have decreased significantly and only account for 11% of the total retail space projects.

Hence , After COVID is ended ,The trend for rental rates in retail space in the shopping center projects in 2566 is certainly improving compared to the past three years, but it may still need to wait for more than a year until the situation returns to pre-COVID-19 levels. The influx of foreign tourists has created a buzz for many large-scale shopping centers in the city center.

In addition, marketing activities and various activities within the retail space project have brought back colors and atmospheres since the beginning of 2565. Some shopping centers in the city center may have to wait for foreign tourists, especially tourists from China, to enter Thailand more than in the present time.

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3. The 3 mega trends that are currently dominating the real estate industry in Thailand will be the driving force for business transformation in the next 1-2 years.


According to REDPAPER, developers need to focus on upgrading their products to meet the changing demands of consumers. The emphasis should be on flexible design for the new generation and moving towards the ESG model, which prioritizes environmentally-friendly materials throughout the business chain.

3.1 Emphasize the “value” of products and services.

From a survey of the real estate business in all three groups, it was found that giving importance and adding value to products and services is an important factor that real estate developers must prioritize. This is because it can elevate the products and services to a higher level. In the residential business, it was found that the demand for single houses increased to 44% in 2022, up from 33% in 2021. This is because single houses can deliver value in an era where people are increasingly living at home. They offer spacious living areas and can be flexible to use.

3.2 “Human Centric” concept. 

The Human Centric concept, which emphasizes the importance of putting humans at the center of design and development, should be applied to satisfy users’ needs.

3.3  “ESG” is pinned in every component of business operations. 

The ESG issue, which stands for Environment, Social, and Governance, is a matter that many organizations consider in conducting their business. This is because consumers nowadays attach importance to purchasing products and services from companies that have policies or directions that are responsible for society and the environment. This is due to the fact that facing disaster situations or changes in climate conditions are factors that make consumers take ESG issues more seriously.

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