The Thai housing market this year is showing signs of recovery in both horizontal and condominium properties amid an improving pandemic situation.
According to the Economic Intelligence Center (EIC), the transfer rates of property ownership for single or twin houses in Bangkok and its vicinity from January to February saw noticeable improvement. However, rates for condominium units continued to contract.
The property ownership transfer rate is a key indication of housing market activity. More new housing units still appeared in the first four months of this year for both single-family homes and condominiums, a welcome development since the downturn began in 2019.
The overall housing market in remote provinces also improved, but is still being held back by the limited purchasing power of domestic customers as well as the fluctuating purchasing power of foreign customers. The transfer rate of housing ownership in remote provinces has seen an uptick, while still falling far short of pre-pandemic levels.
The EIC projected that the horizontal housing market still has room for growth this year, due to demand from middle-income earners who have been affected by the economic slowdown. It also noted that the pandemic drove customers to purchase more spacious homes, leading to better performance in the single-house market. Similarly, twin houses rose in popularity among middle-income earners who prioritize values, function and additional spaces.
Townhouses have also been grabbing the attention of those who want privacy but cannot afford single or twin houses.
Additionally, the EIC said the condominium segment is showing indications of recovery as more existing units find buyers, delayed projects resume construction, and new projects are initiated. (NNT)