How has COVID-19 impacted property prices and where are the opportunities?

We have learnt that people are still actively searching for their dream homes despite the pandemic situation.

Now the question is, how have property prices been affected by COVID-19 and where are the opportunities for agents to close deals?

What is the short-term effect of COVID-19?picture1-1

Our DDproperty Thailand Property Market Index Q2 2020 Report reveals that asking prices of properties nationwide have been on a downward trend since Q1 2019.

This dip relates mostly to condominiums and townhouses. On the other hand, single-detached houses are the only type of residential property enjoying higher prices because they are targeted to meet real demand.

TIP: Download DDproperty Thailand Property Market Index Q2 2020 Report (PMI) for details.  

Where are the opportunities to focus on post COVID-19?

If you’re wondering which areas and property types will fare better despite the pandemic, you’ve come to the right place!

DDproperty Thailand Property Market Index report stated that over the last two years properties priced between THB8-15 million have experienced a 5% price increase with those priced over THB15 million enjoying a healthy 15% upwards trajectory.

Single-detached houses enjoyed a 2% increase from the previous quarter adding to its 9% rise over the last two years, which is fuelled by being targeted towards buyers intending to stay rather than investors.

The chart below shows an Overview of Price Index between Q4 2016 and Q1 2020.picture2-1

According to DDproperty Thailand Property Market Index Q2 2020 Report, top 3 districts experiencing asking price growth are Pom Prap Sattru Phai district (+23% from previous quarter), Din Daeng and Chatuchak district (+8% from previous quarter for both).

Bangkok remains the undisputed champion city for property sales, however Chanthaburi and Chiang Mai are two top tourist cities with 15% and 6% increase in price index growth respectively from the last quarter. These two cities are known for their primed locations with major projects and infrastructure developments built to attract investors.

In terms of supply, Wattana district continued to retain the latest condominium supply, accounting for 20% of all supply, while the majority of single-detached house supply was in Prawet district accounting for 9% of all Bangkok single-detached houses with 56% being in Prawet sub-district.

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Based on DDpropety data as at 25th May 2020, the number of leads in Bangkok also increased by 16.9% for sales property listings while rent listings also grew by 12.4%, as compared to April, suggesting that property seekers’ activities are gradually recovering.

TIP: Leverage on DDproperty’s AreaInsider to monitor property price trends in popular areas.

Opportunities for Agents

This year’s positive factors such as low-interest rates allowing consumers with home loans to refinance and reduce home loan instalments, the postponement of land payment taxes to August 2020, and the adjustment of taxes for renters to pay equally to residential properties, will motivate buyers and investments.

As the market is expected to regain its activities progressively, now is a great time to build pipelines for your real estate business. Here’s how:

  1. Maximise the exposure of your property listings with Boost and Auto-Repost.
  2. If you have a condo listing in a top supply location such as Wattana district or have a single-detached house listing in Prawet district, you might also want to consider Exclusive Listing to stand out from the competition
  3. Stay updated on latest property projects to offer the best options for your prospects, our Condo Directory and New Projects would serve as useful guides.

Additional Articles You Might Find Useful:

 

Stay tuned for more insights next week!

#GuruCares #DDstandbyyou #อยู่บ้านหยุดเชื้อเพื่อชาติ

– DDproperty Team

 

Other articles on COVID-19 Relief Initiative for Agents: 

 

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