As we close out 2020, a year filled with business challenges due to the COVID-19 pandemic, the real estate sector has also undergone changes in response to the situation. As we enter 2021, this industry may need to adapt once again to align with consumer purchasing power.

According to Plus Property, the outlook for the real estate market in 2021 shows that horizontal properties will continue to lead the market. Developers are focusing on launching projects in high-potential locations. The New Normal has encouraged more people to purchase townhomes as they seek more living space to accommodate increased time at home. Meanwhile, condominiums priced between 80,000 and 150,000 baht per square meter remain attractive to the Real Demand segment.

 

Ms. Suwannee Mahanarongchai, Deputy Managing Director of Strategy Development and Asset Management at Plus Property Co., Ltd., stated that the real estate market in 2021 is expected to follow a similar trend to the end of 2020. Developers will continue to rely on domestic purchasing power, leading to ongoing price reductions. They will focus on developing projects in locations that are only accessible to buyers. The horizontal property market still meets the needs of those looking for actual residences, even though purchasing power is limited. However, incentives from low interest rates and affordable prices are encouraging customers to make housing purchases at this time.

The interesting aspects of real estate in 2021 can be divided into three categories:

 

Single Houses

    In 2021, the market for single houses priced between 3-5 million baht will represent the largest segment. In the second half of 2020, locations with single houses priced below 5 million baht included Pathum Thani-Lam Luk Ka and Bang Bua Thong. For houses priced between 5-7 million baht, they are available in Pathum Thani-Lam Luk Ka as well as Bueng Kum-Khlong Samwa.

For the price range of 7-10 million baht, options can be found in the Chatuchak-Ladprao, Lat Krabang-Min Buri, Pak Kret, and Bang Kruai areas. Houses priced at 10 million baht can be found in Taling Chan-Tawiwat, Bang Khae, Salaya-Bang Yai, and Suvarnabhumi-Bang Sao Thong.

In the second half of 2020, the supply of single houses priced between 3-5 million baht expanded the most, while the supply of houses priced above 10 million baht decreased compared to the first half of 2020.

 

Townhomes

        In 2021, the demand for townhomes will continue to be supported by the COVID-19 pandemic, which has led to a New Normal. There is an increasing need for living space to accommodate more activities at home and the work-from-home trend, prompting first-time buyers to opt for townhomes over condominiums due to their larger usable space at comparable prices.

Townhomes are generally easier to purchase compared to single houses in the same area and are often located closer to the city than single houses.

Townhomes priced below 3 million baht remain the primary supply in the market, with locations still offering sales in this price range including Pathum Thani-Lam Luk Ka and Krathum Baen-Sam Phran.

For the price range of 3-5 million baht, options can be found in Bang Khae-Bang Bon-Ratchaphruek, Don Mueang-Sai Mai, while the 5-7 million baht range is available in the On Nut-Bang Na area, and properties priced above 7 million baht can be found in the Chatuchak-Ladprao area.

Condominiums

      In 2021, it is expected that the supply of condominiums will continue to decline from 2020, where in the first half of the year, supply decreased by 11% to 109,433 units, reflecting a positive adjustment by developers. There is a trend towards developing condominium projects that are more affordable to attract Real Demand.

Mid-range projects priced between 80,000-150,000 baht per square meter, with selling prices per unit not exceeding 4 million baht, remain attractive to buyers. In the second half of 2020, most new condominium projects launched were in this price range, particularly along the new subway lines currently under construction, including the Yellow, Orange, and Pink lines.

 

Thank you for the information: Plus Property