2023 is a year of hope for the real estate sector, which has been eagerly anticipating a return to robust growth. However, the reality has not met expectations due to both internal and external factors affecting Thailand's economic recovery. The lack of new government measures to stimulate housing purchases has inevitably impacted the growth of the real estate market. Nevertheless, the Monetary Policy Committee (MPC) recently decided to maintain the policy interest rate at 2.50% per annum, signaling the end of the rising interest rate era. While this may be a small light at the end of the tunnel, it positively affects consumers currently paying off mortgages and those planning to buy homes in the future. This is reflected in the Consumer Confidence Index (CCI) survey results from the Economic and Business Forecasting Center at the University of the Thai Chamber of Commerce, which showed that the CCI in November 2023 rose from 60.2 to 60.9, marking the fourth consecutive month of improvement and reaching the highest level in 45 months since March 2020.

Although the real estate market's growth this year has not been vigorous, it cannot be denied that consumers are still actively seeking housing that meets their needs while waiting for the right time to become homeowners. DDproperty, Thailand's number one real estate marketplace website, has revealed insights from visitors to its site www.ddproperty.com during 2023 (data collected from January to November 2023), reflecting trends in the demand for buying and renting housing among Thai consumers nationwide.

“Bangkok - Nonthaburi - Samut Prakan” Top 3 Most Popular Provinces for Buyers Nationwide

Bangkok continues to be the most sought-after province for purchases in 2023, followed by the surrounding provinces: Nonthaburi in second place, Samut Prakan in third, Pathum Thani in fourth, Chonburi in fifth, Chiang Mai in sixth, Nakhon Pathom in seventh, Rayong in eighth, Nakhon Ratchasima in ninth, and Samut Sakhon in tenth. The top four are all located in Bangkok and its surrounding areas due to the capital's development, which has established a solid infrastructure and continuously improved transportation systems. Additionally, the benefits from the electric train projects connecting Bangkok and the surrounding areas have made commuting easier, resulting in a dense population, which positively influences the demand for real estate purchases.

When categorized by property type, vertical housing remains the most popular, with condominiums attracting the most interest in 2023, accounting for 43% of all properties. This is followed by single-family homes at 38% and townhouses at 19%.

This reflects a changing trend in living preferences, as property developers have increasingly expanded projects to provincial areas, particularly condominiums that cater to the lifestyle of the new generation, resulting in sustained interest from buyers.

In terms of price levels, the most sought-after housing prices in 2023 are as follows:

  • 1st: Price range of 1-3 million baht, accounting for 38% of all price levels, reflecting the purchasing power of the majority of home seekers nationwide, which consists of middle and lower-income consumers looking for affordable projects.
  • 2nd: Price range of 3-5 million baht, accounting for 21%.
  • 3rd: Price range of 5-10 million baht, accounting for 18%.

The combined proportion of housing priced at 3-5 million baht and 5-10 million baht is higher than that of the 1-3 million baht range, as the middle-to-upper-income consumers are less affected by economic conditions than lower-income consumers, making them financially prepared to choose higher-priced housing.

This aligns with data from the National Credit Bureau, which indicates that the housing loan segment priced at 1-3 million baht, which consists of middle-income earners, is beginning to show signs of payment difficulties, with an increase in transitions from regular loans to special mention loans (SM) or those overdue from 31 to 90 days.

“Bangkok” Remains the Most Popular Province Among Renters, with Emerging Tourist Cities

The top three provinces in the rental market remain the same as in the purchase market, followed by major tourist cities, reflecting the demand for rental housing as vacation homes among both Thai and foreign nationals, as well as the ongoing popularity of the Workcation trend, which combines work and travel. The ten provinces with the highest rental interest in 2023 are: 1st: Bangkok, 2nd: Nonthaburi, 3rd: Samut Prakan, followed by Chiang Mai, Phuket, Chonburi, Khon Kaen, Pathum Thani, Nakhon Ratchasima, and Udon Thani.

At the same time, when categorized by property type, nearly four out of five renters are most interested in renting condominiums, accounting for 79% of all properties. This is due to developers targeting a more diverse audience, effectively covering the lifestyles of various age groups. Single-family homes account for 13%, while townhouses only account for 8%.

Considering the monthly rental prices that attracted the most interest in 2023, it was found that more than three out of five (62%) renters are interested in prices not exceeding 20,000 baht, which is considered a reasonable rental price for projects with complete amenities, suitable living spaces, and convenient locations.

  • 1st: Rental price of 10,000-20,000 baht/month, accounting for 36%.
  • 2nd: Rental price not exceeding 10,000 baht/month, accounting for 26%.
  • 3rd: Rental price exceeding 30,000 baht/month, accounting for 23%.

“BTS On Nut” Emerges as the Hottest Location Along the Electric Train Line for Home Seekers

The location of real estate projects is a significant factor influencing the decision to purchase housing, particularly in areas with electric train projects, as they offer the most convenient, safe, and time-efficient transportation in the capital. Additionally, these areas have the potential for future growth and development, making them attractive to both homebuyers and investors.

According to data on the ten most popular electric train stations among property seekers in 2023, seven out of ten are stations on the BTS Green Line, which was the first line to open in Thailand. The areas surrounding these stations have been developed for a long time, both commercially and for residential purposes.

Ranked first is BTS On Nut, a prime electric train location conducive to living, equipped with numerous amenities such as shopping centers, department stores, and international schools. Additionally, it is an area with affordable housing, making it suitable for both living and investment.

Following are: 2nd: MRT Rama 9, 3rd: BTS Phrom Phong, 4th: BTS Ari, 5th: BTS Ekkamai, 6th: BTS Thonglor, 7th: BTS Asoke, 8th: BTS Udom Suk, 9th: MRT Ladprao, and 10th: MRT Huai Khwang.

“Wattana District” Secures Prime Location for Both Buyers and Renters in the Capital

The development of the capital has attracted a dense population, making it a prime location for real estate project development. Data from property listing views in 2023 shows that “Wattana District” ranks first as the most sought-after location in Bangkok for both buying and renting, being a significant business district (CBD) due to its large job market and convenient access via the electric train, making it a central urban area worth watching for both buyers and renters.

The top ten locations in Bangkok that received the most buying interest in 2023 are:

  • 1st: Wattana District
  • 2nd: Chatuchak District
  • 3rd: Huai Khwang District
  • 4th: Bang Kapi District
  • 5th: Khlong Toei District
  • 6th: Prawet District
  • 7th: Suan Luang District
  • 8th: Bang Na District
  • 9th: Phra Khanong District
  • 10th: Bang Khen District

Regarding the top ten locations in Bangkok that received the most rental interest in 2023:

  • 1st: Wattana District
  • 2nd: Khlong Toei District
  • 3rd: Huai Khwang District
  • 4th: Chatuchak District
  • 5th: Phra Khanong District
  • 6th: Ratchathewi District
  • 7th: Bang Na District
  • 8th: Pathum Wan District
  • 9th: Bang Rak District
  • 10th: Sathorn District

More than Half of Bangkok Buyers Prefer Condominiums - Prices Below 3 Million Baht Still Meet Demand

When analyzing the interest in purchasing housing in Bangkok by property type, it was found that more than half (56%) prefer to buy condominiums, which is higher than the national interest rate (43%). This is because condominiums meet the lifestyle needs of urban living, offering flexibility in residence and transportation, along with a wider variety of project options covering all price segments. Single-family homes account for 27%, while townhouses account for 17% of all properties.

Considering price factors, although housing priced below 3 million baht received the most interest, it was found that price levels starting from 3 million baht and above are also popular. This is partly due to the continuous increase in land prices in Bangkok, with high growth potential in demand in the market, leading to housing prices adjusting according to new costs. The most sought-after housing prices among Bangkok residents in 2023 are:

  • 1st: Price range of 1-3 million baht, accounting for 33%.
  • 2nd: Price range exceeding 10 million baht, accounting for 21%.
  • 3rd: Price ranges of 3-5 million baht and 5-10 million baht, each accounting for 20%.

Nearly 9 in 10 Bangkok Residents Prefer Renting Condominiums - Rental Prices Not Exceeding 20,000 Baht Are Attractive

Bangkok has a large population, including both locals and transient residents, resulting in high demand for rental housing. This is due to the flexibility it offers to those who do not wish to settle permanently or have plans to relocate in the future, with condominiums being the most suitable option for urban living.

This is evident as nearly 9 in 10 renters in Bangkok prefer to rent condominiums, accounting for 87% of all properties. Meanwhile, there is still some demand for horizontal housing, with single-family homes accounting for only 7% and townhouses for just 6%.

When considering the overall monthly rental prices that attracted the most interest in Bangkok, it was found that they are similar to the national average, with more than half (59%) interested in rental prices not exceeding 20,000 baht, aligning with the financial liquidity and spending capacity of consumers at this time.

  • 1st: Rental price of 10,000-20,000 baht/month, accounting for 37%.
  • 2nd: Rental price exceeding 30,000 baht/month, accounting for 25%.
  • 3rd: Rental price not exceeding 10,000 baht/month, accounting for 22%.

Pink Line Electric Train Boosts “Nonthaburi” as the Champion Location for Buying and Renting in the Peripheral Zone

The benefits from the development of transportation systems, such as the electric train extension project, have led to a growing demand for housing in the peripheral provinces (including Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon).

Recently, with the opening of the Pink Line electric train project from Khae Rai to Min Buri, connecting travel to Nonthaburi, this has positively influenced real estate projects in the area, making “Muang Nonthaburi District” the most popular peripheral area among buyers and renters this year.

The top five locations in the peripheral zone that received the most buying interest in 2023 are:

  • 1st: Muang Nonthaburi District, Nonthaburi Province
  • 2nd: Bang Phli District, Samut Prakan Province
  • 3rd: Muang Samut Prakan District, Samut Prakan Province
  • 4th: Pak Kret District, Nonthaburi Province
  • 5th: Lam Luk Ka District, Pathum Thani Province

Meanwhile, the top five locations in the peripheral zone that received the most rental interest in 2023 are:

  • 1st: Muang Nonthaburi District, Nonthaburi Province
  • 2nd: Muang Samut Prakan District, Samut Prakan Province
  • 3rd: Muang Pak Kret District, Nonthaburi Province
  • 4th: Bang Phli District, Samut Prakan Province
  • 5th: Khlong Luang District, Pathum Thani Province

Summary of the overall demand for housing purchases and popular price levels in the peripheral zone:

  • When categorized by property type, it differs significantly from the national average and Bangkok, as horizontal housing is the most sought-after in the peripheral zone, with single-family homes accounting for 48% of all properties, followed by townhouses at 31% and condominiums at 21%.
  • Additionally, due to lower land costs in the peripheral zone, this is another factor driving consumers to choose housing in suburban areas. The most sought-after housing prices in the peripheral zone in 2023 are:
    • 1st: Price range of 1-3 million baht, accounting for 46%.
    • 2nd: Price range of 3-5 million baht, accounting for 22%.
    • 3rd: Price range of 5-10 million baht, accounting for 14%.

Meanwhile, the overall demand for rental housing and popular rental prices in the peripheral zone:

  • When categorized by property type, condominiums remain the most popular, accounting for 60% of all rental properties, while horizontal housing such as single-family homes and townhouses have similar rental interest (22% and 19%, respectively).
  • At the same time, when considering the overall monthly rental prices that attracted the most interest in the peripheral zone, it was found that more than half are interested in renting housing at prices not exceeding 10,000 baht, reflecting that the cost of living in the peripheral zone remains reasonable, with no pressure factors causing rental prices to skyrocket beyond reach, making it an attractive point for consumers to move to the peripheral zone.
    • 1st: Rental price not exceeding 10,000 baht/month, accounting for 52%.
    • 2nd: Rental price of 10,000-20,000 baht/month, accounting for 27%.
    • 3rd: Rental price exceeding 30,000 baht/month, accounting for 11%.

*Data referenced from SimilarWeb between April and September 2023