KResearch has conducted a survey on the buying behavior of Bangkok residents relative to a determination on residential property demand one to two years from now. The survey used 458 respondents having among them both local residents and those from elsewhere, but all now living and working in Bangkok. It was found that 49 percent of the respondents own at least one residential property, while 51 percent had none. Of that 51 percent, 76 percent are planning to buy a home within two years' time; 67 percent indicated that getting mortgages has become trickier, citing most concern over high interest rates, followed by difficulty in getting loan approvals and credit limits not covering property prices.
With regard to the purposes intended for the property for those planning to buy within one to two years, 85 percent want to purchase such property as a private residence, while another 15 percent would buy on speculation, or for income from renting out the property. Respondents owning more than one home tend to have their second property rented out. Some 65 percent of those with income property said they have had difficulty in raising rent due to larger supply.
Despite existing residential demand in Bangkok this year and the next, many of those intent on buying a first home, KResearch posits that these potential buyers seem to have limited purchasing power. On speculation purpose, there is growing interest in buying property for investment, especially in the suburbs. By virtue of this, property owners will probably have a tough time trying to raise rents and finding tenants, given the excess market supply. This could lead to longer vacancy period for rental properties.
In all likelihood, the residential property market may encounter a period of slowdown in 2017, with condominium sales contracting. However, prospects remain bright for low-rise units because customers for such residences are mostly seeking them out as a private residence. This trend has already been seen in low-rise a large number of low-rise projects already launched by developers this year.