Bangkok’s Properties at Their Prime
According to Bangkok’s property developers and REIC (Real Estate Information Centre), the country is now recovering from the effects of the 2011 Bangkok floods, with condominiums starting to show a marked increase, owing to the fact that residential demand has shifted into the condominium sector. As expected, the most desirable properties are those in locations that weren’t affected by the flood, particularly projects that are situated near mass transit systems. Bangkok Post reports that the pre-requisition of properties that are near the vicinity of mass transit systems have increased to 47 percent, from its previous 33 percent figures.
Sought After Locations
The most sought after locations in Bangkok are still the Chatuchak, Bang Na and Lat Phrao districts, but the rankings have been changed, with Bang Na overtaking Chatuchak in the top spot. Chatuchak went down to the fourth spot, while Lat Phrao actually managed to climb up in rank, reaching the second position from its previous fourth. Property Perfect Plc’s director of research and business development, Theerathon Tharachai, has confirmed that Lat Phrao was indeed the most preferred location for condos, with 21% preference, which is followed by the central business district at 18 %, Sukhumvit Road being a distant third at 13%. PPP’s survey also confirmed a consistent preference for units that fall within the one to two million bath price range (roughly $31 thousand to $63 thousand in US dollars).
According to a House and Condo survey done by PPP, majority of people who choose condo living were of ages that fell between 21-30. The people who prefer single house living falls in the 31-40 age bracket. The survey shows that only 35 percent of the 450 residents in Greater Bangkok prefer single house to condo living. According to Sena Development Plc director Kessara Thanyalakpark, homebuyers still prefer condos even though the popularity of said house type has gone down the previous year.
The survey also reveals that majority of the people who were already considering purchases even before the flood hit still have unchanged decisions up to this day. Only 17 percent of the buyers chose to postpone buying a house, and another 23 percent just decided not to buy at all. Still, with the remaining 45 percent interested buyers, the priority is still the purchase of a new property, with only a small 16% choosing to buy a new lot in order to escape future flooding. Unfortunately for developers, most homebuyers also stated that they would rather not buy than pay for exorbitant rates under the guise of flood prevention measures – to them, a house being flood proof should be part of the package from the start. The take from the survey is that property developers must choose between lower margins or better absorption rates. The survey respondents were also under the consensus that residential prices in the affected flood areas will drop over the next few months. The places where a price drop is expected include Bang Phlat-Taling Chan, Bhang Khen Sai Mai, Lam Luk Ka-Khlong, Muang Pathum Thani, and many other flood-affected areas.