Bangkok property market still buoyant despite political woes

March 27, 2014 - PRLog -- While Thailand's army chief Prayuth Chan-ocha has called on all sides of the political divide to make sacrifices to avoid violent confrontations, there is still political stalemate in the country with both the anti-government protesters and the incumbent caretaker prime minister unlikely to reach a pact any time soon. It may seem as if the political crisis has led to many investors to suspend any new ventures in the Thai property market, but it is remarkable how buoyant it still is.

The Bangkok residential market has seen an increase in new condominium projects, with robust demand for newly launched projects. In the final quarter of last year there were eight major launches of condominium projects, with the most prominent located in the central business district in Sathorn Road, and two of the most prestigious selling 92-100 per cent of their units at the end of last year despite the street rallies.

Average gross rents for condominium units increased to Bt509 per square metre per month as demand for high-tier condominium units remained healthy which, strangely enough, was influences by an influx of expatriates. Apartment unit rents rose to Bt348 per square metre per month.

According to a report by Jones Lang LaSalle in its outlook of the current year, it anticipates that 3,800 new condominium units will be completed and that the vast majority will be sold. Given the country's slow economic growth, it is likely that certain developers may have decided to suspend new project launches until the political situation is a lot more stable. But Bangkok's property market has nowhere near collapsed and, on the contrary, it would seem as if it is actually surging ahead.

Retail developments also on the rise
Also, undeterred by the political protests and shenanigans that are going on at the moment Thailand, together with nine other countries in the region, are gearing up for the onset of the Asean Economic Community (AEC) in 2015, with Bangkok positioning itself to become the region's major shopping hub.

Total border trade between Thailand and its neighbouring countries has considerably increased to nearly a trillion baht in 2013 and due to the increased value of cross-border trade, businesses are investing not only in the capital but also in the provinces as they prepare for the future.

Developers are opening up or planning to open retail centres in these border areas and many already opened last year. They are also expanding into areas that are close to the borders, such as Nong Khai, which is very close to Vientianne in Laos.

Shopping malls in Bangkok represent 59% of the retail market with more than 3.9 million square metres of space. More than 28% of it is concentrated in the north of the city and around 26% in the centre. Also, community malls are opening in provincial areas that are connected to Bangkok. The main retail developers have refocused their efforts in expanding their businesses in the capital and in border provinces in anticipation of the Asean Economic Community.

Rent Bangkok Apartments is unable to see how the political drama will eventually play out but we do hope that a resolution can be found quickly. Although for some the instability in the country may have put them off coming to Bangkok, it looks like the retail sector is surging ahead. To fine out more about the condominiums and apartments we have on offer, you can search through our listings on our real estate website at http://www.rentbangkokapartments.com. If you are interested in knowing more about the stock we have in hand, please do not hesitate to contact us.