Bangkok Property Market Recovers from Floods

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Bangkok property market has recovered from the recent floods and even the worst hit low rise housing, retail and industrial estates sectors in flooded areas have recovered, according to real estate consultants CBRE Thailand.

 

But buyers are now keener on buying a property in the suburbs and the price of condominiums in particular are increasing due to a rise in construction costs and the price of land, the firm says.

 

It reckons that demand for Bangkok Condominiums and townhouses will increase, driven by affordability, attractiveness of the product and location. The low to mid end low rise market has rebounded with new sales in flooded areas, but the high end market is slower to return.

‘The desire of purchasers to own a house or townhouse close to future mass transit stations in the suburbs has continued as fears of a repeat flood are now alleviated,’ said managing director Aliwassa Pathnadabutr.

 

When it comes to family homes, that majority of buyers prefer town houses in a good location several kilometres away from a mass transit station in the suburbs rather than a one bedroom condominium in the city at a similar price, she said.

Demand for small condos tends to come from single people, couples and students. In the luxury market demand is coming from both buyers and real estate investors.

 

Pathnadabutr pointed out that developers will face challenges identifying new locations and selling poorly performing projects before they were completed. Competition remains fierce with a tendency to quickly oversupply a particular location.

 

Demand in the office market has continued to improve with an overall vacancy rate of 13.9%, down from 14.1% in the fourth quarter 2011.