Thailand’s modest house price rises
8 June 2019
Thailand’s house prices rose by 2.3% y-o-y in Q1 2019
Nationwide house prices rose by 2.3% during the year to Q1 2019, down from y-o-y rises of 3.58% in Q4 2018, 5.13% in Q3, 5.01% in Q2 and 6.1% in Q1. House prices increased by 1.68% q-o-q during the latest quarter.
Demand rising, supply declining
During the first two months of 2019, nationwide land and building transactions rose by 3.8% y-o-y to about THB 156.22 billion (US$ 4.89 billion), following a 7.7% increase in 2018, according to the Bank of Thailand (BoT). Likewise, property credit outstanding also increased 8.8% y-o-y to THB 5.92 trillion (US$ 185.36 billion) in Jan-Feb 2019, after a 6.4% growth in 2018.
In contrast, residential construction activity is now falling. Nationwide condominium registrations fell sharply by 40.5% to 11,858 units in the first two months of 2019 compared to a year earlier, according to BoT.
Rents, rental yields: yields are good in Bangkok at 8.05%
Bangkok apartment costs are moderate, at around $3,638 per sq. m.
Thailand: typical city centre apartment buying price, monthly rent (120 sq. m)
Bangkok: Buying price $436,56 / Rate per month $1,837 / Yield 8.05%
Recent news. Thailand’s economy expanded by 2.8% y-o-y in Q1 2019, down from last year’s 3.6% growth and the slowest expansion in four years, mainly due to slowing exports caused by the U.S.-China trade war, according to the National Economic and Social Development Board. Recently, the government reduced its 2019 economic growth forecast to between 3.3% and 3.8%, from the initial projection of 3.5% to 4.5%, amidst escalating global trade tensions and domestic political uncertainty following the March 24 general elections.
Source: https://www.globalpropertyguide.com/news-thailands-modest-house-price-rises-3767
