{"id":44446,"date":"2017-02-17T18:11:49","date_gmt":"2017-02-17T11:11:49","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/bangkok-real-estate-what-you-need-to-know-for-2017\/"},"modified":"2017-02-17T18:16:21","modified_gmt":"2017-02-17T11:16:21","slug":"bangkok-real-estate-what-you-need-to-know-for-2017","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bangkok-real-estate-what-you-need-to-know-for-2017\/","title":{"rendered":"Bangkok real estate: what you need to know for 2017"},"content":{"rendered":"


\nThe city is witnessing rising land prices in prime areas and strong urban demand
\nAll that glitters is not gold in the City of Angels\u2026 Image: Travel mania\/Shutterstock
\nBy Marciano Birjmohun
\nIt\u2019s evident that Bangkok real estate has been dominated by luxury developments in the past three years \u2013 just look around the city and you\u2019ll see. Land prices have risen exponentially leaving no other choice than to start luxury projects to match the developers return.
\nLooking back over the last two years, interest for luxury projects from both overseas investors and wealthy Thai families has persisted.
\nThe healthy increase in supply from the luxury segment also pushed other developers to new (sub) urban areas and the expansion of the mass transit lines. The old days when BTS On Nut was the last stop of the Sukhumvit line is already a thing of the past, and we can now commute daily all the way to BTS Bearing station, located in the outskirts of downtown Bangkok, and before the end of 2017 this extension will reach the Samut Prakan province.
\nMore: Luxury developers can\u2019t leave this Bangkok neighbourhood alone
\nThe quality of infrastructure systems in Bangkok, including its transportation and telecommunications systems, is also an important factor that influences real estate investment and development decisions similar with other big cities around the world. Infrastructure developments have direct impact on property values, especially the way that transport infrastructure positioning has serious impacts on people, communities and property values. This is clearly visible along the BTS lines Sukhumvit and Silom.
\nResidential and commercial properties located close to transportation infrastructure tend to be labelled as \u201cpremium\u201d and it\u2019s common for real estate prices to appreciate in line with the development of infrastructure.
\nProperty close to public transport links, such as the BTS is generally higher value. Image: Pakorn Amonstian\/Shutterstock
\nThai quota demand slows down
\nLocal household debts and low credit approval have affected the Thai building quota for residential projects across the Kingdom, where the Condominium Act imposes that only 49 percent of the building quota can be sold to a foreign entity.
\nIn general, developers have a \u2018sabai\u2019 time selling to foreigners, most of those buyers are cash-rich (at least rich enough with sufficient funds to pay the down payment) and have multiple options for credit approval and have less debt.
\nWhen we look up into the evening skyline of Bangkok, we see several high-rise condominiums in semi darkness and ask ourselves many questions: Are the owners not home? Did they forget to pay utility bills? Is it their daily \u2018Earth hour\u2019? Or could it really be that there is stock left?
\nMore: These cool Bangkok neighborhoods are home to hot markets
\nIn many cases the darkness is indeed a result of Thai quota limitations \u2013 many units are left unsold due to the aforementioned reasons. But isn\u2019t the middle-class population growing in Thailand? It is indeed, and the middle class also usually apply for household debt by purchasing items on credit that are not a necessity, but more image-based.
\nDevelopers sometimes implement persuasive schemes and deferred payment plans to trigger the interest of Thai buyers. In 2017 we expect to see more serious and also hilarious marketing campaigns being launched, from giving away free iPhone for the first batch of buyers (because that\u2019s what a luxurious life is all about) or awarding a \u201cchance\u201d to get 10 percent discount during the pre-sales phase ( if the non-refundable booking is paid and your lottery ticket is drawn).
\nIn the conclusion of this analysis, we will discuss how Bangkok deals with resale units, the booming hotel industry, the impact of foreign markets, and how \u201cmoney makes the world go round.\u201d
\nThis is\u00a0the first part of a two-part series from Thai property expert\u00a0Marciano Birjmohun. Part two will be published next week.\u00a0
\nRead next: Bangkok condo market awash with uncertainty for 2017
\n
\nSource : property-report.com
\nRead more…Bangkok real estate: what you need to know for 2017<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The city is witnessing rising land prices in prime areas and strong urban demand All...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-44446","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-byS","jetpack-related-posts":[{"id":39203,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/luxe-bangkok-condos-score-big-in-last-5-years\/","url_meta":{"origin":44446,"position":0},"title":"Luxe Bangkok condos score big in last 5 years","date":"December 29, 2016","format":false,"excerpt":"\r Demand for world-class conveniences rises in Thailand Plus Property conducted a real estate survey in regards to luxury condominiums in Bangkok recently and the results showed that there continues to be strong demand from both Thai and foreign customers for these types of units. The property and facilities management\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44085,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/luxury-developers-cant-leave-this-bangkok-neighbourhood-alone\/","url_meta":{"origin":44446,"position":1},"title":"Luxury developers can\u2019t leave this Bangkok neighbourhood alone","date":"February 14, 2017","format":false,"excerpt":"\r It\u2019s been cool for years, but now it\u2019s red hot The Niche Pride, a high-end condo in Thong Lor to be completed in 2017 A new wave of luxury condo projects is coming to Thonglor with property developers expected to launch more than THB 50 billion of new developments\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23365,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/thailands-luxury-developers-seek-outside-investments\/","url_meta":{"origin":44446,"position":2},"title":"Thailand\u2019s luxury developers seek outside investments","date":"August 19, 2016","format":false,"excerpt":"\r Thai developers are hitting the road to showcase luxury condo developments Bangkok\u2019s skyline with the structurally impressive MahaNakhon Tower. Image credit: MJ Prototype\/Shutterstock Faced with a flagging market, Thai luxury condo developers are striking out abroad to showcase their projects. 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