Changes in Real Estate in Thailand
The ever-changing landscape of what is Thailand Real Estate can be accredited to some key national and international factors. The upbeat global outlook at the turn of the year, in turn, influences investment from leading financial institutions, property developers and operators, private owners, equity partners, property funds and investors. Decisions are now based on extensive market research and statistics from leading analysts. Technology also plays a leading role in how real estate gets done. One of the trends that have emerged over the last few years is the use of data from multiple sources, giving the buyers, owners, developers, investors more information than ever before. Targeting buyers through the use of data have become commonplace.
Throughout the last 30 years, there have been many social changes which had affected demand in the real estate market. Young people in major cities have more disposable income, leaving home before marriage. This, in turn, fuels the one-bed condominium market. The developers have made huge leaps in the quality of build and now are clearly focused on the end user in supplying fully fitted out dwellings.
New projects are being launched by developers, but the demand is carefully monitored, there is a new category the Chinese foreign buyers which developers have targeted over the last few years. A year on year increase in tourism has created a demand for real-estate, especially from the Chinese market. Retailers have also benefitted greatly from the rise in Chinese tourists in Bangkok and major resort areas, monitoring their spending patterns and identifying the strategy that the retail developers deploy enables the real estate market to develop a plan around the arrival of the Chinese.
With the renewed optimism of an improved global economy, Thailand developers are competing for prime developments sites which in turn pushing prices higher.
As the banks become more conservative over lending to Thai developers, they are seeking foreign partners and investors. There is also an increase of joint venture condominiums developments with Japanese partners.
Sales to Thai buyers has shown signs of slowing down, and there will be no improvement as the bank impose tighter regulations on mortgage lending soon to specific categories of buyers. In the domestic market, some second-home buyers will be restricted to a maximum loan of 80% of the property value. Developers are looking at locations carefully to attract the Thai end users, while some focus on attracting the foreign buyer.
Technology is again leading in the way in how real estate is being planned and maintained in the form of Smart Build Technology. The information from sensors that are installed around the property will help monitor, traffic, water, temperature and light and assist property managers as they look to maintain their properties more efficiently. These devices enable the average person to equip their home in a smart device DIY style. Developers are looking to include these devices into their build, including lighting controls, thermostats, home safety sensors, security cameras, locks and alarms, home appliances, sounds systems, and TVs.
Looking forward real estate always depends on how the economic climate is performing, while the demand will still be there for new builds, there might be an interest in the value in the old building renovation.