Windows Of Opportunity

Demand continues to rise, albeit at a slower pace, for luxury residential offerings in right locations throughout Thailand.

- Olha Romanuik

The economic slowdown in Thailand has affected the residential property market in 2019 prompting some foreign investors to look for greener pastures in the neighbouring countries with brighter prospects. Nevertheless, some residential developments in key cities around Thailand are still achieving and maintaining high occupancy rates even in the slowing market: very prominently, projects that offer a variety of unit types located in strategic locations or vacation destinations are continuing to enjoy popularity even in the face of a slowdown. Excelling projects are maintaining interest from investors by offering a relevant unit mix and maintaining competitive building conditions, while also incorporating more family-friendly features to keep them competitive.

ADAPTING TO CHANGING CONDITIONS

New project launches in Bangkok have been able to sell out quickly in Q3 of 2019 by setting the selling prices lower than the market prices and focusing on selling different types of products to meet the diverse lifestyles of the buyers. Unsold units remain the main concern for developers at present, according to Colliers Quarterly Q3 October 2019 report and, to whet the appetite of the prospective buyers, developers of older projects with unsold units have also been offering special promotions to lower the unit prices and push the sales.

According to Tim Skevington, managing director of Richmont’s, affiliate of Christie’s International Real Estate, despite the softer market this year in Thailand, the overall pricing trend remains positive. “We find that savvy buyers are taking advantage of current uncertainties to negotiate discounts or other benefits such as free furniture packages, or reduced property transfer and management fees,” explains Skevington.