Real Estate in Bangkok in 2023 - What To Expect In This Year

The real estate market in Bangkok has gone through many changes and fluctuations over the last several decades, however, it has always recovered and continued along a relatively strong upward trajectory. 

Take the COVID-19 pandemic as an example. With closed borders and tourism all but grinding to a halt, economic uncertainty threw the country into a panic with many property owners trying to sell their holiday homes and second properties as quickly as possible. 

Today, with opening borders and a drive toward relaxing mortgage requirements, there has been a very positive impact on the Bangkok real estate market and we are currently seeing a steady and healthy recovery. 

That being said, the economy is still in a somewhat precarious position and a full recovery has not yet taken place. 

In this article, we’re going to look at real estate in Bangkok in 2023 and what we can expect to see over the coming months…

Real estate in Bangkok in 2023 – Quick facts

• It is estimated that a full market recovery will occur by 2025 to 2027, however, with many new positive measures being introduced that recovery should hopefully come about sooner.
• Measures to ease the burden of public housing costs for low-income citizens will resume (in November 2022, the Central Bank of Thailand relaxed mortgage requirements in an attempt to revive the real estate market which currently employs 2.8-million people and accounts for some 10% of the entire nation’s GDP).
• For every 1-million THB, home buyers can save approx. 2.98% as a result.
• Due to easing restrictions, foreign nationals will be more likely to secure property loans and an increase of $1.5-billion USD per year is expected. That being said, many Thai banks are still a little reluctant to lend to non-residents.
• An increase in interest rates on home loans is expected.
• Additional pressure on purchasing power and an increase in business costs will likely impact housing prices.
• There is still an oversupply of properties in Bangkok – particularly condominiums.
• New housing projects will decrease by an estimated 6.3% compared to the previous acceleration in 2022.
• Condominium developments will slow down in Bangkok with a likely focus on more remote areas due to the imminent introduction of the SRT Red Line electric train transport connecting the capital city with a number of neighbouring regions.
• The Thai economy is estimated to grow by 4% according to the Minister of Finance of the Thai Kingdom. 

Foreign land ownership is still uncertain 
In November 2022, the Thai government withdrew a highly controversial proposal that would allow foreigners to hold land ownership of up to one rai (1,600 square metres), for residential purposes. 

Non-nationals have never been able to legally purchase and own land outright in Thailand and this is something that many Thai people firmly believe should remain the same. 

The purpose of the proposal and the move toward foreign land ownership was to attract foreign investors and ultimately fuel the economy. 

Needless to say, the government quickly retracted their proposal for review after an overwhelming outcry in opposition to the prospective changes. 

Whether this idea will be scrapped for good or if the Thai government will introduce a revised proposal with far stricter conditions for foreign land purchasing, it is still far too easy to say. 

As for now, purchasing property in Thailand is highly regulated for foreigners. 

Bangkok remains one of the preferred locations for home-buyers 
In a recent consumer sentiment study, 53% of respondents who look to purchase property in Thailand said that the location is their primary deciding factor. This is a figure that is likely applicable to the global real estate industry as a whole. And while many of the provinces surrounding Bangkok beat the key tourist destinations in Thailand in terms of preferred housing choices, Bangkok still remains at the top of the list. 

1. Bangkok
2. Nonthanburi
3. Samui Prakan
4. Pathum Thani
5. Chonburi
6. Chiang Mai
7. Prachuab Khiri Khan
8. Phuket 

Bangkok’s inner city is no longer top 
Bangkok has expanded rapidly over recent years and as such, the inner city is no longer among the most sought-after locations for purchasing property. Yes, there are many properties for sale in the central business district, however, these are highly expensive and not suitable for the mass market. 

That being said, with a drive toward easing restrictions for foreigners obtaining property loans, we could potentially see a rise in foreigners snatching up more luxury, top-end property in central Bangkok, with lower-income nations moving outward. 

The main locations currently experiencing the highest demand from home buyers in Bangkok are:

• Bangchak (attracting the most interest for property for rent in Thailand’s capital with a growing multinational community).
• Khlong Tan Nuea (attracting more interest for property for sale in Thailand’s capital – more likely for Thai nationals looking to make passive rental income from said growing multinational community).
• Lad Phrao
• Huay Kwang
• Jompol, Chatuchak
• Hua Mark
• Din Daeng
• Samsen Noi

Thailand’s Cannabis regulation will have a huge impact 
On the 9th of June 2022, Thailand legalised the growing of marijuana and its consumption in food and drinks. This has given rise to a plethora of new businesses, boosting both the agriculture and the tourism industry. They are even allowing the plant to be used for medical purposes which could have a positive impact on Bangkok’s already thriving medical tourism industry. 

It is expected that these relaxed laws, coupled with the fewer travel restrictions that are now in place, will garner much foreign business and the sale of properties for commercial and industrial use. 

Conclusion 
Overall, the property market will be seen to normalise once more in 2023 and some semblance of stability is returned. 

Now that COVID-19 is more or less a thing of the past and the Thai government has introduced new visa options for foreigners who would like to invest in—and remain in Thailand long-term—the likelihood is that we are going to see a healthy recovery indeed. 

If you are interested in investing in property in Bangkok, now is almost certainly the time to do it. 

Can’t decide? Need some further advice? Feel free to contact the team at Lazudi today and we’ll answer any questions you may have quite happily.