Thailand Real Estate Market Outlook 2021
Restart the Uneven Recovery
CBRE, a leading international property consultant, reveals in its 2021 Thailand Real Estate Market Outlook that a potentially bumpy recovery across geographies and sectors is predicted as Thailand’s economy continues to weather another challenging year in 2021 due to the pandemic-induced economic storm in 2020; the residential sector will see uneven recovery from condominium and housing markets; and commercial markets will experience mixed fortunes as logistics leads; while the office market braces for high entry of supply and hospitality and retail lag.
Residential: Realign the Price
CBRE believes the Bangkok residential market will remain sluggish in 2021as COVID-19 has put pressure on both domestic and foreign buyers, prolonging purchasing decisions. Limited new launches will be focused mainly on the midtown/suburban areas and affordable segments as price becomes more realistic.
In 2021, developers will continue to concentrate on the remaining built-but-unsold inventory, while also looking for opportunities in new areas and focusing on increasing their financial liquidity. Low-rise housing will be the key focus for new developments as developers seek to mitigate risks while demand for condominiums is still in the market but from buyers with lower budget. Developers will also shift to smaller scale development to reduce investment size and make it easier to pass the financing threshold from the banks.
Ms. Aliwassa Pathnadabutr, Managing Director of CBRE Thailand commented, “Based on the number of CBRE’s transactions in 2020, the selective luxury residential market is still in high demand from both end-user buyers and investors with high purchasing power especially for branded residences and luxury housing, but decision-making has become longer. Supply of large units in the super-luxury segment where sales have been slow in the past will become more active this year. Foreign buyer interest, especially from Chinese investors, to invest in Thailand remains across all segments but the volume of foreign sales will recover when they can return to the country. Sales promotions together with effective government stimulus are needed to attract foreign buyers. CBRE expects to see a more effective stimulus plan that covers wider aspects which will better support the residential market in 2021.”
Office: Reshape the Future of Workplace