The stability that Thailand’s economy has been experiencing recently has mirrored the success that its real estate market has been going through overall. This has been especially true for Thailand’s larger cities, particularly Bangkok, so much so that 2010 up until 2011 have been described as “good years” by those in the real estate business suprising stability when the rest of the world is going bad.
Bangkok’s Real Estate Property Launching Boom
Stated to a 2011 condominium market report performed by Colliers International Thailand (CIT), the year 2010 saw a record-high in condo unit launches, topping by far the statistics 2009 brought in. In the fourth quarter (Q4) of 2010, more than 20,000 units were recorded to have been launched for Bangkok and its surrounding areas. The number of launched condo units for the whole 2010 exceeded an astounding 60,000 in total. This building boom has raised some concerns regarding an oversupply of units, or the creation of a “bubble” in Bangkok high-rise real estate.
Despite the misgivings a lot of people may have regarding these numerous, newly launched condominiums however, the general opinion seems to remain that Bangkok’s real estate market will continue to be strong. Top personnel at CIT have stated that the concerns may be slightly exaggerated, as various factors such as larger income levels, the city’s growing population and a more competitive market are sure to pop whatever bubble may arise from the launching boom.
Because of Bangkok’s steadily growing and stable economy, more and more people are flocking into the city and its suburbs to take advantage of better income provided by good employment opportunities. This means a rapid increase in the need for convenient and readily available forms of housing in and around the city and a rise in the number of people who can pay for such. Even the more expensive units, such as those located in and around subway and train stations, have been snapped up by eager residents and employees of Bangkok. In addition, while the larger names in land and housing development have continued to dominate the market, smaller but equally progressive developers have been getting in on the action as well, making for healthy competition in Bangkok’s real estate.
The projected idea for the market this year is a turn from launching into actual building. There has been a marked decline in the number of people buying condo units, but this is balanced out by the smaller number of launches that have taken place so far in 2011. Developers have begun the construction of the condo units that people have bought from them during and after their launches. This doesn’t mean that everything stops here, though. Future plans to further develop the existing means of mass transit may eventually lead to an even bigger bullish trend, as Bangkok’s burgeoning population seems to be in need of additional modes of accessible public transportation. Bangkok real estate researchers and analysts have the opinion that though the 2009-2010 rush appears to have slowed down, there is still plenty of room for Bangkok’s real estate market to expand as the country continues with its good economic run.
We will be watching this ever expanding bangkok real estate and its stable market and we feel there is no better time to buy.