Strong Demand for Condo Keeps Thailand Property Market Grow

According to Real Estate Information Center (REIC) director-general Samma Kitsin says, Thailand property market has continued to grow at 5% this year thanks to strong demand for condominiums in the vicinity of the mass transit system.

Next year is also likely to witness growth of 5-10% following the government’s Bt2-trilllion infrastructure mega-project that will drive demand for residences in the vicinity of the new mass-transit routes.

Demand to widen

Demand will expand from the central business districts to around Bangkok once the new mass-transit routes are built, reducing the population density of Bangkok, he said. He was speaking yesterday at an event marking 60 years of Government Housing Bank. Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong presided over the ceremony.

Kittirat said the Thailand property market has continued to grow strongly and there were no signs of a bubble in this market segment.

Samma added that although the country’s economic growth would slow down in the second half of 2013, it would have little impact on the demand to buy residences around the mass transit system. According to REIC research, the number of new condominium units sold this year will be between 70,000 and 75,000 units, up 11-19%, compared to 63,000 new units last year.

Meanwhile, sales of single detached houses and townhouses would be 40,000 units this year. They match the demand for mortgage loans of Bt470 billion a year.