A property website predicts Bangkok residential demand in the second half will continue to rise after a rebound in the first quarter, led by low-rise houses, though condos grew at a snail's pace.
Kamolpat Swaengkit, country manager of DDproperty.com, said growth in low-rise housing demand was still strong since the pandemic emerged two years ago.
"This year low-rise houses will continue dominating the market as they meet homebuyers' needs in the long run," she said.
In the first quarter of 2022, the low-rise housing demand index soared 48% from the same period last year.
Demand for single detached houses rose to 126 from 85 and 122 in the first and fourth quarters last year.
Demand for townhouses remained flat at 111 from the fourth quarter last year, but increased from 83 in the first quarter of 2021, while the figure for condos dropped to 106 from 109 in the fourth quarter last year, but picked up from 92 in the first quarter of 2021.
The price index for condos in the first quarter was 86, continuing a drop from 97, 95, 92, 89 and 87 from the third quarter of 2020 through the third quarter of 2021, respectively.
The price index of single detached houses and townhouses had consecutive increases, with single detached houses gaining from 111 in the first quarter last year to 114, 120, 126 and 132 in successive quarters.
The townhouse price index, which stayed flat at 101 in the first to third quarters of 2021, recovered to 102 and 104 in the fourth quarter of 2021 and the first quarter of this year, respectively.
"The sales prices of condos slowed down as fewer foreign arrivals were allowed," said Ms Kamolpat.
"A full reopening and incentives to attract foreigners to work or invest in Thailand can help boost condo growth again."
She said condos have an opportunity in the rental market, as rental demand grew 50% in the first quarter year-on-year.
Interesting locations for rental condos include some areas outside the central business district and on Bangkok's outskirts such as Lat Krabang, Sai Mai and Thawi Watthana districts, where rental rates saw a quarterly rise of 1-2% in the first quarter of the year, said Ms Kamolpat.
Overall residential demand in Bangkok in the first quarter of 2022 remained unchanged from the fourth quarter last year.
However, it rose by 33% from the same period last year and soared 70% from before the pandemic in the fourth quarter of 2019.
"A good momentum has returned with homebuyers resuming purchases," she said.
"But in the first half, market sentiment remains poor due to the stagnant economy, high inflation, rising interest rates and the Russia-Ukraine war, which had an impact on construction costs."