Thailand Housing Market’s Thailand Consumer Sentiment Study, revealed that across all age groups, the perception of property agents and developers is the least important factor when considering a property purchase.
How Thais perceives the property market is key to its success. Confidence buoys demand to instigate spending and increase transaction numbers. The property market is driven by supply and demand, and achieving the right balance makes the difference between a buoyant and lacklustre market.
Real estate agents work on commission so just like any other salesperson, part of their job is to talk up the market to increase sales and take-up rates. However, Thailand Housing Market’s Thailand Consumer Sentiment Study, revealed that across all age groups, the perception of property agents and developers is the least important factor when considering a property purchase. Therefore to gain the perspective of individuals paints a clear forecast of the property market to predict future trends and scenarios.
Of those interviewed for the report, more than 75 percent plan to buy property in Thailand with over half of these hoping to do so in the next two years. This alone suggests a certain level of confidence in the market. There remains however a real appetite for new properties with the majority of Thais setting their sights on this type of property suggesting that developers need to keep building.
Sustainability has become a buzz word as people are changing their habits to reflect more environmentally friendly living. This notion continues with looking for a new home as 81 percent of respondents stated that they would be prepared to pay more for a property that is an environmentally sustainable home, something that developers should take heed of to generate interest in their product and to even boost profits.
While foreign investors are often cited as driving Thailand’s market, Thais have said that they are in favour of restricting foreign ownership for local citizens to advantage. Foreigners are allowed to own condominiums but only up to 49 percent of the total saleable area of each building.
Typically Thailand welcomes investors from Japan, Singapore, Hong Kong, and China buying units to park their money while enjoying the capital appreciation it brings. However, should new legislation be introduced to restrict their numbers, it will naturally increase supply and inturn reduce property values.
Any such measures would need to be carefully thought out and introduced slowly to minimise the impact on the wider property market and the country’s economy.
In conclusion, Thais continue to see bricks and mortar as a wise investment asset. Their thirst for new properties will ensure take-up rates for newly launched projects will remain strong, however, at the same time, this will devalue resale properties and is a large mindset to be overcome in the future.
Finally, developers should consider including sustainable features when designing new projects to gain traction and to keep up with competitors.
