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Expensive! Many people! Good economy! Why is Thai real estat
Guide reading:According to Laifang data, the cumulative supply of apartments in Bang Sue increased by 35,448 units from 2009 to the first quarter of 2018. And the accumulative housing absorption rate in this area is 90%. Housing prices in Bangkok, especially in the
Investment in Thailand has become a trend. According to the Financial Times, 16% of Chinese overseas investors plan or have chosen to invest in Thailand. Housing prices in Bangkok, Pattaya, Phuket and Chiang Mai have also risen steadily in the light of this upsurge. In Bangkok alone, annual earnings can reach almost 10%. In the core area of Bangkok, housing prices in large business circles have exceeded 40,000, and most of the other high-quality projects near BTS and MRT tracks have reached 20,000.
 
Expensive! Many people! Good economy! Why is Thai real estate becoming more and more valuable?
 
Thailand is the world's most famous tourist country with beautiful environment, which has become a new target for investors. Bangkok, as the capital of Thailand, receives more than 30 million tourists every year. The booming tourism industry has led to Bangkok's economic and real estate market. Investors have almost snapped up all the gold sites and high-quality projects in Bangkok. Bangkok apartments, which have only 49% share of foreigners, are sold out in the first few days.
 
Bangkok is such a hot real estate market at present, especially in the core rich areas of Bangkok, where land is scarce, land prices are high, and there is only one less dish sold out. If you want to buy a second-hand house in the future, you can only find a second-hand house and lose the opportunity to invest.
 
So what is the reason for the high housing prices in Bangkok? The following aspects are analyzed.
 
1 Land supply
The source of housing prices is land supply. According to the data, the development of new flats in Bangkok will gradually decrease after peaking in 2016, and the number of new flats in downtown and suburban areas will decline significantly. This is mainly due to the scarcity of exploitable land and land resources.
 
In an area where the intensity of development is already so high and land is extremely scarce, it is almost impossible to have a large supply of land. Then we all know that scarcity is the most precious thing, and the shortage of land supply will inevitably lead to the rise of land prices.
 
Expensive! Many people! Good economy! Why is Thai real estate becoming more and more valuable?
_Data source of land price increase in Thailand in the past 30 years: CBRE
 
CBRE Shibang Weilishi recently reported that land prices in Bangkok have risen tenfold with the rise of Thailand's economy since they founded their branch in 1988.
 
Expensive! Many people! Good economy! Why is Thai real estate becoming more and more valuable?
_Data source of land price increase in Bangkok in the past seven years: REIC
 
Meanwhile, according to REIC data from the Thai Statistical Bureau, land prices in the Greater Bangkok region rose by an average of 32.3% in April-June 2018, the highest in Bangkok's history.
 
In addition to the scarcity of land, for a traditional country like Thailand, land can not be exploited casually. Even demolition and reconstruction can only be done with the consent of 100% of the residents. Therefore, because of the scarcity of land resources and the difficulty of reconstruction, Thai real estate is becoming more and more popular.
 
2. Market Demand
In the market economy, the price of any commodity is affected by supply and demand, and house price is no exception.
 
Expensive! Many people! Good economy! Why is Thai real estate becoming more and more valuable?
_Data source of new housing start-up in Thailand: REIC
 
As land prices rise in Bangkok and less and less land is vacant in the city centre, the number of new housing starts in Bangkok is gradually decreasing. New housing starts have been greatly reduced, but buyers are still "hungry and thirsty" for new housing, so it is not alarmist to say that Bangkok's "one room is hard to find". The decline in new housing starts has brought Bangkok's housing market into the "buyer's market", and the value of Bangkok's property is bound to continue to appreciate in the next two or three years.
 
According to data released by Thai financial institutions, in the first half of this year, the volume of housing transfer transactions in Bangkok increased by 7% to 460 billion baht, while the volume of transfer transactions increased by 3% to 169,000 units.
 
According to Laifang data, the cumulative supply of apartments in Bang Sue increased by 35,448 units from 2009 to the first quarter of 2018. And the accumulative housing absorption rate in this area is 90%. Housing prices in Bangkok, especially in the core areas of Bangkok where land prices are rising and in the planned suburban areas of Bangkok, are still growing irresistibly.