Weekly Thailand Property News Update , EP 5 , 2023

BY Kittipong Kongthanarung

1.What is the location that has the highest reduction in price for single houses, townhouses, and new condominiums in Bangkok in 2023?

Check the prices of single houses, townhouses, and new condominiums in Bangkok Metropolitan Region during the early months of 2023 to find the areas with the highest price increase or decrease. You can find detailed information from the Real Estate Information Center here.

According to the latest report from the Real Estate Information Center and the Government Housing Bank, there are several areas where the prices of single houses and townhouses have either increased or decreased the most in the first quarter of 2023.

The new overall housing price index (for single houses and townhouses) during the first quarter of 2023 in the Bangkok Metropolitan Region has increased by 0.8% compared to the same period last year, with a value of 128.3. However, it has decreased slightly compared to the fourth quarter of 2022.

This shows that housing prices have increased compared to the previous year, but have slightly decreased during the first quarter of 2023 due to a small reduction in selling prices to stimulate sales, and to cater to the purchasing power of potential buyers.

On the other hand, the new condominium price index during the first quarter of 2023 has increased by 2% compared to the previous year and 2.9% compared to the previous quarter. The overall condominium price index that is still in the process of being sold in the Bangkok Metropolitan Region has increased by 2% compared to the previous year and 1.9% compared to the previous quarter.

The single house prices

The single house price index in Bangkok and its surrounding provinces in the first quarter of 2023 is 127.1, an increase of 1% compared to the previous year. It can be divided into:

Bangkok: decreased by 2.5% compared to the previous year. The decrease in single house prices in Bangkok in this quarter promotes sales, with the majority of the decrease in prices occurring in single houses with prices over 10 million baht and located in developed areas of Bangkok.

This can be found mostly in the areas of Rat Burana, Bang Khun Thian, Thung Khru, Bang Bon, and Jomthong, as well as in Phra Khanong, Bang Na, Suan Luang, and Prawet, and in Lat Phrao, Bang Kapi, Wang Thonglang, Bueng Kum, Phahonyothin, and Kannayao.

Three provinces surrounding Bangkok: increased by 2.9% compared to the previous year, but decreased by as much as 3.8% compared to the previous quarter, with a decrease in the group of prices ranging from 7.51 – 10 million baht and above.

This can be found mostly in the areas of Bang Kruai, Bang Yai, Bang Bua Thong, and Sai Noi, Nonthaburi City, Pak Kret, and Pathum Thani City, Lat Lum Kaew, and Sam Khok.

Townhouse Prices

The townhouse price index in Bangkok and its suburbs for the first quarter of 2566 (2023) has a value of 129.7, an increase of 0.5% compared to the previous year. It can be broken down as follows:

Bangkok: increased by 1.9% compared to the previous year, due to the recent launch of high-priced projects.

Three suburban provinces: decreased by 2.4% compared to the previous year, due to price adjustments for marketing purposes, particularly in the 3-5 million baht range, as there is still a lot of supply in the suburban areas.

New Condo Prices

For the overall new condo price index for units currently on sale in Bangkok and its suburbs for the first quarter of 2566 (2023), the index value is 154.7, an increase of 2% compared to the previous year. It is worth noting that the index value for new condos has clearly increased in Bangkok, while it has continued to decrease in the suburban areas from the previous quarter. It can be broken down as follows:

Bangkok: increased by 2.9% compared to the previous year, due to recent project launches and price adjustments.

Two suburban provinces (Samut Prakan and Nonthaburi): decreased by 1.8% compared to the previous year, due to price adjustments for marketing purposes in previously launched projects, which still have the same cost basis.

more info : https://www.thansettakij.com/real-estate/562432

2.Silom – Rama4 location, a new office building project with an area of 700,000 square meters.

Knightfrank recommends keeping an eye on the Silom-Rama 4 area, which is heating up with the imminent reopening of a 700,000 square meter office space from five big projects – Silom Park, Pan Yannawa Tower, The PARQ, Central Park Office Series, and Boonmitr Silom. The “office building” market has become the most eye-catching center of attention for the Thai real estate sector, after the COVID-19 crisis has passed. Before, many companies used flexible or hybrid working policies, leading to the possibility of a new working standard in Bangkok, which challenges the “rental space” of both old and new buildings.

However, it is not the case with the golden location of Silom-Rama 4, which is a significant business district that is filled with large international companies. Currently, the office building market is buzzing again with the launch of 5 new projects from big investors, totaling 700,000 square meters of rental space. At the same time, the trend remains strong as each project competes for a certificate of environmental friendliness, to attract more guests.

The economy is recovering, increasing confidence in the private sector.

The aforementioned issue, Mr. Panya Jengjitwirat, Managing Director and Head of Office Space Division, Knight Frank Thailand, revealed to “Thansettakit” that after the COVID-19 outbreak for 3 years, which has left a major scar on both the business and household sectors, the Thai economy is showing signs of recovery. The government’s economic stimulus measures have had a positive impact on businesses in all sectors, including the real estate sector. He also said that the office building market in Bangkok is currently experiencing an imbalance in supply and demand, with demand being higher than supply.

The New Normal era has sparked a resurgence in office space rentals. When the COVID situation began to ease, many companies decided to bring their employees back to work at the office more often, starting from the first half of 2022. While working from home may offer more freedom and flexibility for employees, it may not be suitable for all types of businesses or jobs. Additionally, in the long term, remote work may lead to reduced relationships between colleagues, hindering brainstorming and team collaboration. The solution for many companies is a hybrid work model, which involves alternating between working from home and coming into the office, depending on what is most suitable. However, there is no fixed percentage or rule for how much time should be spent in the office.

As companies return to working in the office, office space rentals have become more popular. Rental formats include direct agreements between companies and projects, or renting from co-working space providers. This rental model has become more popular as it meets business needs for convenient facilities within the rented space and flexibility in adding or reducing space as needed. However, this rental model may come with a higher rental cost per employee.

more info : https://www.thansettakij.com/real-estate/562441

3.”New City Plan: Transforming Bangkok, pinpointing job hubs, reducing travel time.”

New Bangkok City Plan: Transforming the Capital with Modernization and Sustainability

Bangkok Metropolitan Administration (BMA) has announced its plan to renovate and transform the city into a sustainable and modernized metropolis. The plan includes the development of new districts, construction of new railway lines, reducing traffic congestion, air pollution, and expanding job opportunities.

In the late 1960s, the city embarked on an ambitious plan to improve the quality of life for residents. The new city plan aimed to reduce traffic congestion, air pollution, and create more green spaces. The plan also included the construction of new districts, such as the newly developed district of Bueng Kum, and the expansion of the city’s public transportation system.

Now, as the city enters its tenth year of implementing the third revision of the city plan, it is time to update the plan to keep pace with the changes taking place in the city. With the expansion of the city’s public transportation system, particularly the new railway lines linking to the suburbs, new golden locations for development have emerged, providing significant economic benefits. This has resulted in a need to update the city plan to ensure that land use is harmonized with the changing needs of the city.

For example, the Green Line of the Bangkok Mass Transit System (BTS) runs through the area of Khukhot, while the Red Line links to Rangsit in Pathum Thani Province. Additionally, new lines, including the Yellow Line (connecting to Samut Prakan Province), the Purple Line (connecting to Nonthaburi Province), and the Pink Line (connecting to Nonthaburi), have been constructed. The plan also includes the development of new roads, such as the Kanchanaphisek Outer Ring Road, connecting the city’s various districts.

Recently, the BMA held a meeting with neighboring provinces to discuss the city plan’s fourth revision, focusing on connecting infrastructure in the suburbs and creating new job opportunities in the area.

Mr. Aswin Kwanmuang, the Governor of Bangkok, has stated that the city needs to update the city plan in certain areas, particularly in distributing the commercial zones, to create new job opportunities outside the city center. He also emphasized the importance of promoting the concept of “Economic Base,” which aims to promote the development of local economies, and support the establishment of local communities that can reduce the number of people commuting out of the area for work.

more info : https://www.thansettakij.com/real-estate/562381

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