Property prices expected to rise 10%, survey shows

Property prices expected to rise 10%, survey shows

Thais are concerned about what lies around the corner for Bangkok's real-estate market, but expect to see property grow in value over the next five years, according to the latest consumer sentiment survey by DDproperty, a leading online property portal.

The survey, carried out in the first half of this year, looks at sentiment in Bangkok primarily among first-time home buyers and those looking to upgrade to a more expensive home.

The bulk of respondents, or 49%, expect real-estate prices to rise by up to 10% in the next five years, while 14% forecast prices will climb even higher.

Despite the optimistic long-term outlook, over 60% of respondents indicated they expect turbulence in the short term due to economic factors hampering growth.

"We see mixed sentiments in the survey, with people focused on economic pressures today and expressing concern about Bangkok being an over-priced market," said Kamolpat Swaengkit, country manager of DDproperty, a subsidiary of Singapore-based PropertyGuru Group.

"But we also see very strong long-term optimism about the Bangkok market, and we attribute this to recognition that urbanisation will continue in Thailand," she said.

"This will drive demand and ultimately make Bangkok one of the best cities in the region to buy property, especially condos."

The survey revealed that buyers still prioritise location when considering a condominium purchase in the capital. Some 94% of respondents chose this as the primary factor in their buying decision. Infrastructure, amenities and price also factored significantly into their buying decisions.

The majority would like to see the government take proactive steps to manage the real-estate market, with nearly 60% saying they would like to see the authorities address affordability issues.

"From a regulatory standpoint, we believe respondents like things such as the programme for first-time buyers and the elimination of housing transfer and mortgage fees," said Ms Kamolpat.

"We also believe people may be seeking relief from the challenges involved in obtaining a mortgage," she added.

Overall real-estate market sentiment in Bangkok is trending slightly down with the satisfaction rate falling from 68% in 2015 to 62% in 2016 and 57% at the start of this year.

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