Bangkok developers are building fewer condominiums and are more likely to rely on budget housing in 2023. Experts from Britain recently came to such conclusions after analyzing the data of the Thai real estate market for Q1 2023.
In Q1 2023, 7,148 apartments in condominiums appeared on the Bangkok market - this is 25.3% less than in Q4 2022, and 56% less than in Q2 2022. It is noted that 88% of new condominiums are located in suburban areas, 10% - in areas near the business center and 2% - in the very center of the city.
In the most budget houses, apartment prices start from 1,280,000 baht ($36,327) - that's how much they ask for a one-room apartment of 32 m2. Budget housing accounts for 69% of all condominiums built in Q1 2023. Only 2% of all apartments belong to elite real estate, and another 29% are considered to be housing of the middle price segment.
Experts note that the purchasing power of the local population has significantly decreased in the real estate market. This is largely due to the fact that many government measures that stimulated the real estate sector are no longer in effect.
On the other hand, there is a return of the purchasing power of foreigners. Analysts believe that this is a sign of the imminent return of foreign demand for Bangkok condominiums.
In Q2 2023, there is a decrease in the number of new construction projects. Developers do not yet understand whether it is possible to count on the early return of local purchasing power and therefore act cautiously.