P.R.A. Academy predicts a clear growth in the real estate market for 2018, driven by the recovering economy and the clarity of government policies, which boosts investor confidence and supports opportunities for both new and existing real estate projects, including condominiums. For vacant land investments, it is advised to keep an eye on tourist cities such as Hua Hin, Pak Chong, and Bangkok, where prices are on the rise.

          Mr. Phisit Apivatanapong, also known as Coach Tang, a real estate investor and trainer at P.R.A. Academy, revealed the trends in the domestic real estate market for 2018, stating that it will grow significantly due to the recovering economy and the clarity of government policies, including the land and building tax that will be implemented next year. This clarity will instill confidence in investors and potential property buyers, leading to increased willingness to make investment decisions.

           The growth of the primary real estate market will directly benefit from the government's advancing policies in 2018, such as the Eastern Economic Corridor (EEC) project and the bidding for various electric train construction projects. These factors will stimulate the real estate market along the electric train routes, as evidenced by real estate developers gradually launching more new projects along each train line, especially condominium projects, reflecting the potential of these locations in the future, aligning with the needs of younger consumers who seek greater mobility.

          However, investments in primary real estate must consider the supply in the locations being targeted, as an oversupply could lead to many completed projects not being sold out, resulting in price reductions. Therefore, careful location selection is crucial to ensure profitability from future price increases. Another observation is that during the initial phase of new projects, rental rates tend to be very high, leading to increased competition among held properties.

          The secondary real estate market in prime locations is also attractive, as new projects are priced higher, causing secondary property prices to rise, although they remain lower than primary properties. The advantage of investing in secondary real estate is that the purchase price may be 10-20% lower than market prices, with potential returns on investment reaching 7-10%. Additionally, risk management is better since rental rates and tenant demand can be assessed before investing.

          Regarding the condominium market, Mr. Pantawat Ajsirimanachai, also known as Coach Teh, noted similar signs of recovery from developers who are gradually launching many new projects, particularly in areas with infrastructure investments, such as the extension of the green electric train line from Mo Chit to Saphan Mai, achieving good sales during the launch of several projects from AP, LPN, Origin, and Ananda.

          Additionally, there are projects from smaller developers offering alternatives to customers, along with many new condominiums waiting to be launched in 2018. However, the market for completed condominiums ready for transfer priced below three million baht faces a rejection rate of nearly 50% for loans, causing transfer volumes to fall short of targets. Consequently, developers will need to implement special campaigns, such as free transfers, free furniture, or cash discounts to stimulate sales in areas where the condominium market is oversaturated, particularly along the electric train extensions after station connections have improved the situation.

          For the luxury single-house market, super luxury properties priced at 20 million baht and above continue to be launched, led by SC Asset, the market leader in this segment, followed by Ananda, AP, LH, Sansiri, and Q House. Additionally, new developers like Altitude Development are launching projects to provide customers with unique design concepts in prime locations such as Thonglor, Pattanakarn, Kaset, Nawamin, and Phahonyothin 24, where customers have high purchasing power and prioritize preferences and location, allowing this market to continue to grow well.

          Meanwhile, Mr. Thanit Phinthurak, also known as Coach Tiw, stated that investing in vacant land should focus on interesting locations with high growth potential, particularly in tourist areas such as Pak Chong, Hua Hin, and Bangkok. Hua Hin is a tourist and vacation destination for city dwellers and foreigners, showing continuous growth potential, coupled with various government investment projects supporting the area in 2018.

          Similarly, Pak Chong is a popular vacation and tourist spot for city residents, while Bangkok's locations are increasingly prominent due to rising land demand each year, as evidenced by the increasing number of new construction projects annually, leading to continuous land price increases. Recently, land prices have surpassed 3 million baht per square wah,” Mr. Thanit stated.

            “I follow news about real estate closely and notice that there is no month without new projects emerging. I believe this trend will continue, especially now that various electric train construction projects in Bangkok are nearing completion and will soon commence operations. These factors continuously create new locations, even with the upcoming dual-track rail and high-speed rail projects set to finish in a few years. If one starts investing late and does not invest during this period, the opportunities will become increasingly difficult,” Mr. Thanit concluded.

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