Bangkok’s Condo Market looks a lot Different compared to 15 Years Ago!
The Bangkok condominium market looks a lot different today than it did 15 years ago with the majority of developments increasing in price across the many districts of the nation’s capital.
Now the overall price increase cannot be contributed to one factor alone it is a result of the combination of several key elements such Thailand’s economic growth, the influence of the government and the fact that Bangkok over recent years has established itself as a thriving major city.
Other key factors that have influenced the pricing of developments are foreign investment, population growth, availability of disposable income, the mass-transit system in Bangkok and a change in the attitude to condo developments.
Just looking at statistics briefly you are able to see the difference over the last 15 or so years.
In 2008 the housing price index in Thailand was 91.60 compared to 134.90 in 2016, the average monthly income over that period increased from 8,500 THB to 14,000 THB and since 2006; national interest rates have dropped from 5% down to the current rate of 1.5%.
Bangkok itself has played a large part in the cost of condos the city’s growth as has increased exponentially as a result of investment from the government and foreign investors and as a result the population is increasing also with some sources expecting it could rise to 14 million by 2025. With the increasing population the need for residential buildings is also growing.
The transport links throughout the city and neighbouring provinces have also grown since 2000 especially with the opening of Suvarnabhumi airport in 2006 as well as improved rail and motorway networks making residential properties more desirable in the city for those who have to commute for work.
These factors and statistics make it clear to see that condo prices have risen by as much as 100% since the year 2000 however the increase is slowly levelling out overall as the property market reaches its equilibrium.