The Bangkok Condo market has changed drastically over the last 15 years or so and we have seen an overall increase in the price of condo developments across the various districts of Thailand’s capital city. Many factors have contributed to this overall increase in price such as the Thai economy, the government, and the development of Bangkok itself as a major city. The below provides some insight into statistical trends, and also contributing factors as to why the condo market has developed in this way.
A statistical analysis of the Bangkok housing market
Generic statistics relating to the Thai economy and house prices
– Thailand’s housing price index rose from 91.60 in 2008, up to 134.90 in 2016
– Condo prices rose at a lesser rate of 4.7% in 2016 from 8.9% in 2015.
– Average monthly income has risen from 8,500 THB in 2008, up to 14,000 in 2017
– Since 2006, nationwide interest rates have dropped from highs of 5% down to current rates of 1.5%
– Since 2000, Thailand’s Real GDP Growth has yo-yoed consistently Specific statistics relating to historical condo prices (per square meter)
– Silom District: Year 2000 – 76,000 THB / Year 2017 – 155,000 THB
– Lumpini District: Year 2000 – 104,000 THB / Year 2017 – 195,000 THB
– Sukhumvit District: Year 2000 – 72,000 THB / Year 2017 – 140,000
– Riverside District: Year 2000 – 78,000 THB / Year 2017 – 165,000 THB
What factors have affected the Bangkok condo market in recent years?
There is not one single factor that has contributed to the relative increase of Bangkok’s condominium prices; instead, we have a series of factors that have resulted in prime conditions for property development and an increase in the value of properties. Some of the main contributing factors are listed below:
– Stability of the government
– Foreign investment
– The Thai economy and economic growth
– The mass-transit system in Bangkok
– Population growth
– Available disposable income
– A change in attitudes towards condo developments
We can see that the development of Bangkok in itself has played a huge part in the cost of condos and their availability. Since the early 2000’s this city has grown exponentially and a great amount of investment from the government and foreign interests has meant the population in Bangkok has increased (some sources state the population could rise to 14 million by 2025), and the subsequent need for residential buildings. Whilst political unrest in 2006 and 2008 did result in economic stagnation, the country has since recovered and Bangkok has again prospered.
Aside from the improvement of the Thai economy and investment in Bangkok, the city has also seen the development of the mass-transit system, which greatly increased the population’s ability to travel to work and move within the confines of the city. Many Thai Nationals moved within the city centre and made use of the improved transport links – this meant that the need for condos and residential developments increased.
From the information displayed we can see that condo prices have risen by as much as 100% since the early 2000’s, but this increase is slowly tapering off overall, as economic growth settles and the property market reaches its equilibrium. Prices in the luxury condo market continue to flourish. More on that in the future!
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