Summary of the Real Estate Situation in 2018


             The summary of the real estate situation in 2018 based on the statistical data from the Real Estate Business Indicators of the Bank of Thailand TerraBKK shows that the value of land and property transactions nationwide continued to grow at an average of 8% compared to the same period last year. The issuance of land allocation permits nationwide expanded only for residential purposes. In terms of overall condominium registrations nationwide, there was an increase of over 24,943 units, and real estate loans from commercial banks grew by 5.9%, including both business loans and personal housing loans. Meanwhile, the registered housing in Bangkok and its vicinity remained stable, while the statistics for approved construction areas contracted in both Bangkok and other provinces. The details are as follows:

The value of land and property transactions nationwide continued to grow at an average of 8% compared to the same period last year


            The real estate situation overall shows that the value of land and property transactions across the country from January to August 2018 grew at an average of 8% compared to the same period last year. The Central region had a total transaction value of over 465 billion baht, accounting for 64% of the country. Meanwhile, the Eastern region experienced the highest growth in transaction value, approximately 18.7% compared to the same period last year.

The issuance of land allocation permits nationwide expanded only for residential purposes


             Although the total number of land allocation permits issued nationwide from January to August 2018 was 48,252 plots, an increase of about 10.38% compared to the same period last year, a closer look at the real estate situation reveals that the issuance of permits for commercial purposes and vacant land has been continuously declining. Therefore, the overall increase in numbers nationwide is solely due to the issuance of residential land allocation permits, with a total of 46,466 plots, an increase of 6,731 plots or 16.9% compared to the same period last year.


The approved construction areas contracted in both Bangkok and other provinces


             It is highly likely that the approved construction areas will continue to contract for the third consecutive year, with the nationwide total in 2016 at 62,547 thousand square meters, which then decreased to 62,009 thousand square meters in 2017. The real estate situation for 2018 from January to August shows a total of 36,166 thousand square meters, a decrease of over 4,451 thousand square meters or 11% compared to the same period last year, resulting from contractions in both Bangkok and its vicinity as well as other provinces across the country.

Overall, condominium registrations nationwide increased by over 24,943 units


             The real estate situation regarding condominium registrations nationwide in 2018 (January-August) jumped by 56.75% or about 24,943 units compared to the same period last year, with half of this increase occurring in Bangkok, doubling to a total of 37,651 units, while other provinces accounted for about 31,381 units.

Registered housing in Bangkok and its vicinity remained stable


             The real estate situation for the Bangkok and vicinity area regarding registered housing remained stable compared to the same period last year. A detailed breakdown by type of construction shows that the trend for housing projects increased by 25.7% or 4,984 units compared to the same period last year, while the trend for flats and condominiums continued to decline by -12.3% compared to the same period last year. The self-built housing category remained relatively stable compared to the previous year.


Real estate loans from commercial banks grew by 5.9% for both business loans and personal housing loans


             The overall real estate situation regarding real estate loans from commercial banks for the latest year 2018 (January-August) grew by 5.92% compared to the same period last year, including business loans which increased by 283,290 million baht, or 5.7% from the same period last year, and personal housing loans which increased by 958,256 million baht, or 6.0% from the same period last year. ---TerraBKK

Article by: TerraBKK Investment Tips
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