Trends and Features of the Bangkok Residential Property Market

The Bangkok housing market is not currently experiencing growth. According to a report by the Kasikornbank research centre, sales are expected to go down by 7.8% by the end of 2023 compared to the end of 2022. The effect of pent-up demand due to the pandemic has passed, and real estate sales are now showing a downward trend.

This is forcing banks and developers to look for ways to revive demand in the Bangkok real estate market. One is to reduce government fees for mortgages for properties worth less than 3,000,000 THB ($84,500). This, as well as some positive forecasts from experts expecting growth in 2024, encourages investors and consumers to purchase Bangkok real estate. It is more profitable to buy when prices decrease than when they rise.

Read on to know more about the key features of this market, its trends, and the pros and cons of buying a home in the Thai capital.

• Advantages of Bangkok Real Estate
• Disadvantages of Bangkok Real Estate
• Specifics of Bangkok Real Estate

Advantages of Bangkok Real Estate

Being the capital, Bangkok already stands out with its modern and developed infrastructure.

• The city has its metro network. BTS Skytrain and MRT connect developed areas and make moving around the city quick and easy. Meanwhile, construction continues, and we can expect even greater coverage of various areas. As a result, the cost of housing there will increase.
• Constantly rising construction standards. Trying to attract as many foreign buyers as possible, developers are improving the quality of real estate. That is why new properties almost always feature gyms, swimming pools, saunas, and lounge areas.
• Increase in tourist flows. Bangkok is one of the most popular tourist cities not only in Thailand, but in the whole of southeast Asia. This means that the demand for local real estate, including rental property, will be stable, making it attractive for investments.

Disadvantages of Bangkok Real Estate

There are two cons to buying property in this city. The first one is individual and specific to this city. The second one applies to all real estate in Thailand.

A common disadvantage is that foreign nationals have limited access to properties in Thailand, it is almost impossible for expats to buy land here. This creates certain difficulties when buying houses, villas, and townhouses: citizens of other countries can own them, but not the land on which they are built. You will have to rent it separately.

There are also restrictions for flats. You can only buy a flat in a condo and only if it has no more than 49% foreign residents. Be sure to check:

• The legal status of the building. It is impossible to visually distinguish an ordinary house from a condo. The difference can only be seen on paper. The purchase is allowed only in one case.
• The status of foreign quota. The easiest way for expats is to buy flats in houses under construction. After this stage, you will have to look for a house where the 49% quota is not full yet.

The above rules apply to the entire country. As for Bangkok real estate specifically, its main disadvantage is its price, which is higher compared to other cities.

^{*According to the Numbeo website}

Although the table above does not contain prices for all Thai cities, it is obvious that the cost of housing in Bangkok is on average higher than in other areas. However, it is also cheaper than real estate in other developed ASEAN countries. For example, 1 square metre in the centre of Singapore costs 27,831 SGD ($20,461) and outside of the centre – 16,360 SGD($12,026).

Specifics of Bangkok Real Estate

The residential real estate market in Thailand has its specifics. The main one was mentioned above; it is the difference in the legal status of a flat building and a condo. However, there are other peculiarities:

• Most flats and houses either do not have a kitchen at all, or have the so-called Thai kitchen. It is very different from the Western versions. A Thai kitchen is a small island at the entrance or even on the balcony. It usually has a stove, a sink, and a food storage cabinet. The refrigerator is put in a separate room. Thais rarely cook at home because of the heat, so they do not need regular ovens or microwave ones. There is no gas supply in Thailand real estate, so stoves run on electricity or a gas cylinder. However, many new houses in Bangkok have standard Western kitchens. New properties are generally more advanced than those built 15 or 20 years ago, but ovens and freezers are still rare even there. Of course, you can have them installed for an additional fee.
• You might stumble upon an offer to buy a so-called home office. That is what Thais call a detached house which is allowed to be used for commercial purposes. In a home office, you can live and work at the same time. 
• Detached private houses in Bangkok are very expensive, so townhouses are much more common. They are also known as row houses, because they are basically a chain of properties with one or two common walls.

In a Nutshell

Demand for residential real estate in Bangkok in 2023 is lower than in 2022. This is mostly due to the fact that the previous period took on the pent-up demand after the pandemic, and the situation has stabilised. Meanwhile, some experts expect a change in the situation in the following periods, predicting an increase in sales and prices in 2024.

However, although the investment attractiveness of Bangkok properties may still provoke some questions, this period is definitely favourable for purchasing your own home. The market is not overheated, which means there are many reasonably priced offers.

At the same time, before the sale, you should get familiar with local specifics including restrictions of Thai law for foreign buyers of local real estate. They can only buy condos into full ownership, and only if the foreign quota is observed. You can buy houses but not the land they are built on. Flats are available only for long-term rent.

Cover photo: Miltiadis Fragkidis (Unsplash)