Thailand Property Research Reports Q1 2019
Our latest reports on the Condominium, Office, Retail and Serviced Apartment markets are now available for download.
The new LTV regulation from the Bank of Thailand, the new land and building taxes, the rising land prices, and the political situation have affected the residential market in Bangkok. Developers slowed down new launches and focused on clearing inventories before the LTV regulation was put into effect. In the second half of 2019, after the election result is expected to be announced, the condominium market is expected to pick up again, as developers have plans to launch new projects later this year.
Future supply will remain limited between 2019 and 2020, but starting in 2021, the supply will exceed the expected net take up of 200,000 square meters per year. The expected office supply completion will reach over 200,000 square meters in 2021. As of the first quarter of 2019, the total supply in the construction stage was about 1 million square meters, while the total supply in the planning stage was almost 2 million square meters. During this quarter, more projects have started to be constructed, and more developers have announced new office development plans. The market conditions after 2021 might change, as the overall occupancy might drop, which will affect rental growth.
The opening of new retail developments with investment values of more than THB 50 billion located along Rama 1 Road and Sukhumvit Road at the beginning of this year has revitalized the retail markets in the Ratchaprasong and Sukhumvit areas. Many developers are looking for new land plots to develop new projects, including both small retail and large mixed-use projects to respond to new customer requirements and lifestyles.
Many residential developers are more interested in developing serviced apartments to create an investment opportunity during this period of high competition in the condominium market.