Housing for senior citizens will also grow in popularity as developers compete for this section of the market amid an ageing population in Thailand, the research report from Thailand's No. 1 online real estate portal, showed.
The DDproperty Property Market Outlook 2018 report was launched to help homebuyers make an informed decision in making one of their biggest, and most expensive, purchases. The report analyses relevant data from the past year to forecast market trends in the next 6-12 months, helping consumers – whether they are buyers, sellers, renters or lessors – to not only understand the market, but to prepare plans and make decisions with greater confidence.
Real estate demand in Bangkok was supported by developers launching projects near future mass transit lines and the city's fringe areas during 2016-2017. However, when the Thai government's economic stimulus package expired in the second quarter of 2016, demand became sluggish for most of 2017.
"DDproperty expects demand for new releases to start moving in an upward trend as we head into 2018, thanks to rising consuming spending - in-line with the economic recovery, the expansion of mass transit lines, and government infrastructure projects along the Eastern Economic Corridor," said Kamolpat Swaengkit, Country Manager for DDproperty.
"On the supply side, 2018 may see even more projects from developers compared to 2017, so the real estate market is forecast to show signs of improved health next year."
Growing Condominium Supply in 2018
The DDproperty Property Index, which was launched last month, showed condominiums had the highest price index growth at 209 in the third quarter of 2017, compared to single-detached houses and townhouses, reflecting increased demand. Developers are expected to launch more condominium and housing projects in 2018 in provinces such as Chachoengsao, Chonburi, and Rayong.
Developers had already ramped up launches throughout 2017, with an estimated 45,000 new units forecast to reach the market before the end of the year, a 15% increase from 2016. Supplies are likely to be even greater next year after the government's decision to launch a new economic stimulus scheme, which have previously prompted greater consumer spending, including in the real estate sector.
According to DDproperty's Consumer Sentiment Survey, consumers don't believe property prices have changed in the past six months, and will remain stable for the next six months. Moreover, they believe property prices will increase by 5%-10% in the next five years, with condominiums enjoying the highest price growth.
Developers Eye Senior Citizens
DDproperty, which each month helps more than three million Thais find a home, said that Bangkok's fringe areas such as Ratchada, Ladprao, and Rama 9 have caught the attention of consumers, whose purchasing decisions are made on three key factors: location, infrastructure/nearby amenities, and price.
"In the first half of 2017, many consumers delayed their purchases due to economic uncertainty, and were waiting for the government to launch a stimulus package for them so they could buy a property at a lower price," said Kamolpat.
The survey results for the second half of 2017 and the first half of 2018 are expected to reveal higher consumer satisfaction levels due to the economic upturn, investment from both the private and public sectors, and lower household debts.
"In addition to incorporating some quirky innovations into newly launched developments by leading developers, what we expect to see in 2018 are more residential projects with senior-friendly facilities, as Thailand gears toward the complete aged society in seven years," concluded Kamolpat.