Watch This Episode: Our Phuket Real Estate Podcast
Our podcast covers all the topics for property investors looking at buying real estate in Thailand.
This year, Thailand’s real estate market has faced significant challenges, including slow economic growth, weakened purchasing power, and rising household debt. As a result, many Thais are shifting towards renting rather than buying properties, particularly in tourist cities where the rental market is booming.
Key Takeaways
- Consumer searches for rental properties surged to 57 million views, a 13% increase from 2023.
- Searches for properties to buy dropped to 47 million views, down 20% year-on-year.
- Urban condos are the most preferred property type, with 74% of seekers opting for them.
- Average monthly rents for urban condos stand at 14,000 baht.
Current Market Trends
Phuwanai Phattaraphokin, CEO of LivingInsider Co, highlighted at the NEXT 7.0 Conference that the current economic climate has made renting a more practical option for many. Despite the downturn, properties in prime locations continue to perform well in the rental market, with some areas experiencing stock shortages. For some investors, real estate remains a solid opportunity.
Urban Property Preferences
In 2024, urban property seekers showed a clear preference for condominiums, with 74% favouring this option over houses (26%). Among condominiums, one-bedroom units are the most popular, accounting for 63% of searches, followed by two-bedroom units (24%) and studio units (10%).
- Condominium Preferences:
- One-bedroom units: 63%
- Two-bedroom units: 24%
- Studio units: 10%
For low-rise housing, single-detached homes are the most sought after (62%), with rental interest at 63% compared to 37% for buying.
Sales and Rental Prices
The average sales prices and rental rates for various property types are as follows:
| Property Type | Average Sales Price (Baht) | Average Monthly Rent (Baht) |
|---|---|---|
| Urban Houses | 12.3 million | 45,000 |
| Suburban Houses | 4.6 million | 23,000 |
| Urban Condos | 6.8 million | 14,000 |
| Suburban Condos | 3.2 million | 7,400 |
Phuwanai noted that the price of urban houses has exceeded 10 million baht due to high land costs, while urban condos now start at 5 million baht.
Emerging Hotspots
In Bangkok, the top five condo hotspots include:
- Asoke, Thonglor, and Ekkamai (15%)
- Rama IX (10%)
- Onnut-Punnawithi (9%)
- Ratchada-Huai Khwang (5%)
- Ha Yaek Ladprao (4%)
For houses, notable areas include:
- Pattanakarn, Srinakarin, Krungthep Kreetha (9%)
- Ramintra-Watcharaphon, Sai Mai-Hathairat (8%)
- Bangna KM 7, Ramkhamhaeng 2 and Mega Bangna (7%)
- Pathum Thani-Rangsit-Lam Luk Ka (6%)
- Nonthaburi-Bang Yai-Bang Bua Thong (5%)
Bangna is emerging as a prime location for both rental and resale, driven by improved connectivity and growing demand.
Provincial Hotspots
Outside Bangkok, the leading provinces for property rentals include:
- Chonburi (Pattaya and Sriracha) – 38%
- Chiang Mai – 17%
- Hua Hin – 11%
- Phuket – 6%
- Khon Kaen – 5%
Phuket, particularly Patong, has seen a surge in interest, with land prices now rivaling those in Bangkok’s Thonglor area, a significant change from its previous status just five years ago.
Sources
- Thais shift to renting as property market booms in tourist cities, Nation Thailand.
