Bangkok residential property prices have increased by more than 100 percent in just three years.
That’s the findings of the DDproperty Property Index, published yesterday, which also noted a slowdown in property price growth during the final three months of 2017.
Kamolpat Swaengkit, Country Manager for the real estate portal that is part of PropertyGuru Group, said: “Although the Index grew at a slower pace in the last quarter of 2017, the 3 percent quarter-on-quarter increase maintained the positive momentum of the Bangkok residential property market in 2017.”
“This indicates that the Thai capital, and indeed, the whole country, has gradually recovered from the economic slowdown, while consumer purchasing power, especially in the upper- and middle-end segments, has improved.”
The portal began collecting data in 2015.
Chatuchak saw the highest quarter-on-quarter growth in property prices at 5 percent, with Bangna ranked second at 3 percent ahead of Phra Khanong, also at 4 percent.
The property portal noted Bangna, with its 75 percent increase in prices within less than three years, as one area to watch in the long term.
In contrast to many market watchers and property industry experts, DDproperty does not see the possibility of oversupply in the Bangkok residential property sector.
The Index expects to see an increase in supply as a high amount of new inventory from both big and small developers are scheduled to enter the market this year.
However, the Bangkok residential property market is expected to recover slowly as household purchasing power remains under pressure from high levels of debt.
Despite this, residential market oversupply seems unlikely.
Kamolpat said: “Supply will remain at high levels as many developers have several new projects in their pipeline for 2018, while take-up rates are still low.”
“We don’t think this would lead to an oversupply issue, as developers are monitoring the situation closely and are ready to calibrate supply, in order to maintain desired property price levels.”