Real Estate Recap 2023: Hot Locations, Booming Products, and Trends to Watch

I was thinking...

Should this year-end article be about mysterious stories

or a summary of the overall real estate landscape?

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Well, let’s go with an overview first, shall we?

Let’s see which types of real estate shine,

which products are booming,

and which trends flop.

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Consider it a New Year’s gift.

Let’s go... dive in!!!!

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#Summary of the Real Estate Industry 2023

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Starting with condos first.

Condos are still the type of real estate

with the highest transaction volume,

whether for rent or purchase.

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The locations most contacted by clients

remain the same old prime areas:

early-to-late Sukhumvit (Chidlom–Onnut),

still in the top 3 all-time.

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Due to job clusters in this zone,

there has always been demand from various nationalities.

And this year,

it has started to spread to Udomsuk and Punnawithi to a certain extent.

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Rama 9 – Ratchada (from Rama 9 to Sutthisan)

has become a hub for Chinese and other Asian foreigners,

coming in large numbers

whether for tourism, business (of all kinds).

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New Petchburi Road

has started to gain more acceptance

because it’s an alternative route to Sukhumvit

at a more affordable price point,

making it easier to decide.

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Early-to-mid Ladprao, Phahonyothin

remains favored by Thais working in that area,

with convenient access to the expressway

to go in and out of the city.

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Lastly, condos near universities

have constant demand from students.

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Regarding locations,

many might already know some of this,

but if we dive deeper,

we’ll see that

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The purchase price range of 1–3 million baht

or rental prices around 10,000 baht +/−

remains consistently popular.

It’s still the biggest market segment.

Most Thais' income levels

can afford this price range.

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In terms of consumption,

demand is still along BTS lines,

a key factor,

and near job clusters in the city.

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This group

is very sensitive to numbers.

Even 500 baht in rent makes a difference,

or a 10,000 baht difference in selling price

can affect contract signing.

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Next is room condition,

furniture and appliances.

The most influential factor is

the washing machine.

Rooms with one

can close deals more easily.

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Overall project atmosphere

must not be too old; keep the lobby lights bright.

Buildings shouldn’t have noticeable cracks,

and should have some motorcycle parking.

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Condos that (secretly) allow pets

and have less strict management

can capture another segment

of quiet demand.

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This group has significant demand,

but it comes with some chaos,

which contrasts with investor needs.

Because pet-friendly units

are not what most investors want.

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Thus, investors should consider

choosing condos that allow pets,

using furniture that isn’t too expensive,

and requiring tenants to purchase damage insurance

during the lease.

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**Damage insurance

is different from the 2-month security deposit.**

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For those looking to invest in condos for rental,

it’s still a good market.

Still worth investing in (compared to bank interest rates).

Investment returns (Yield)

are at 5–6% per year,

which is considered standard currently.

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In terms of location,

near schools, universities, hospitals,

or stable workplaces

are the safest bets for investment.

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But I want to leave a note:

You should look more at layout plans.

Many focus only on location and price

but overlook whether the layout

meets the lifestyle needs of the target group.

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1-bedroom types remain the most popular.

Studio types,

if possible, are usually viewed as optional.

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Studio isn’t bad,

but first-time renters

usually don’t like studios.

Because studios are reminiscent of dorm rooms.

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So for those who used to live in dorms,

when paying higher rent,

they don’t want a room layout

that reminds them of a dorm.

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Thus, if a studio is larger than 30 sq.m.,

you can partition it to create separate spaces.

Costing just a few thousand baht,

just install a glass wall to create a bedroom,

and tenants' perception will change.

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Or better yet,

install a solid partition wall,

which will really suit these groups

and close deals faster.

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But that doesn’t mean studio types are bad overall.

There are certain groups who prefer them,

like art/design/media students

who need open workspaces

more than general groups.

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Or households with more than 2 people

living in one room,

like families with young children.

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The advantage of studios

is that the overall atmosphere

feels more spacious

than rooms with partitions.

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On buying and selling,

with the current economic climate

and housing loan interest rates,

banks are rejecting mortgage applications up to 70%,

causing purchase volume

to lag behind rentals.

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And with mindset + changing lifestyles,

younger generations prefer renting to buying,

due to not wanting long-term debt.

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Plus, with flexible workplaces,

they can move around more often.

Given current interest rates,

it’s no longer easy to say

buying is better than renting.

Thus, the buy-sell market

is stickier than rentals.

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High-end condos

are usually for foreign clients

who want large units,

100–300 sq.m.,

the higher the floor, the better.

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Penthouse units remain valuable

to certain groups.

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And riverside condos

still have steady demand.

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Mid-high to high-end products

still have a market.

There are still buyers who can afford them.

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Although, from a value perspective,

they may not be the best option,

but the product must have enough value.

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Moving quickly,

next is houses.

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For rental houses,

the most attractive investment

is luxury houses.

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Rental prices around 100,000 baht +/−,

purchase prices from 20 million baht +.

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We can see two major groups clearly:

Thai investors as buyers,

and foreigners as tenants.

Of course, the largest group is Chinese.

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They have strong rental capacity

and usually come as families.

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The most rented house locations,

BTS is not the main factor.

The main variable is

“international schools,”

such as Regent, Brighton, Wellington, SISB.

These are the first choices for this client group.

Why?

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From our data collection,

it’s a modern Chinese family value

to send children to international schools

to build future and business pathways

in Europe and America.

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School fees here

are five times cheaper than in China.

And overall cost of living

is much lower.

Thus, we see Chinese families

clustered

around international schools.

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House styles and decor

that feel safest

are Modern, Classic, and Contemporary.

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Meanwhile, traditional styles,

like Thai houses, Thai pavilions, vintage,

are niche markets only.

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Owners rarely rent them out

due to maintenance and deterioration.

If damaged, it’s not worth it.

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The hottest locations are

Krungthep Kreetha, Rama 9, Huai Khwang, Srinakarin, Pattanakarn, mid-Sukhumvit.

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As for Bangna,

it’s for working Chinese

at manager level and above,

independent business owners, online sellers,

and expats working at international schools

who cluster in that zone.

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In Sukhumvit,

houses and townhouses

remain open markets

for expats of all nationalities

who want activity space

and large balconies.

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Products in this zone are very scarce,

rarely vacant.

Agents are scrambling to find them.

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Another category we can’t skip

is dormitories / apartments / service apartments / hostels.

Clients seeking these

are mostly investors,

with multi-national funds,

and again, Chinese as a major group.

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They want to avoid

Airbnb rental restrictions in condos.

Many condo juristic offices have tightened rules.

Thus, they look for alternative options

for this lucrative business.

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Service apartments / hostels are popular

because physically,

they resemble condos the most.

Dorms may not create enough value yet.

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Locations mostly follow BTS lines,

extending even to outer areas like Bearing

or various extended lines.

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With relatively low prices

and much more convenient transportation now,

combined with generational transitions

from baby boomers to their children

who don’t want to continue this business.

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Thus, we see

more apartment properties

coming on the market.

Recently,

more foreign investors

are sweeping up / long-term leasing these properties.

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What’s coming soon

is an aging society.

We see more talk about the wellness business,

but it hasn’t fully launched yet.

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Properties suited for this business

are mostly old hotels

and hotels in tourist cities.

But hotel prices

are often sky-high.

So investors

aren’t too excited yet.

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Properties that support this

are usually newly built condos or hotels

that have not yet operated,

or have been running only briefly

without a management team yet.

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Properties at this stage

usually don’t have high prices yet.

Thus, investors are actively seeking them.

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Lastly, we can’t skip land.

Land prices are rising,

along with updated urban plans

set to be announced in 2025,

likely allowing more utilization.

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Color zoning is intensifying,

expanding growth

to match all BTS line extensions.

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But in the inner city,

plots not yet transacted

are often unaffordable,

or ownership conflicts

remain unsettled.

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Viable plots,

50–100 sq.wah for residential,

200–400 sq.wah for business use,

1.5–4 rai for condo projects,

4–10 rai for mixed-use projects,

over 25 rai for housing estates.

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For land investors,

believe that every plot

can be creatively developed

aligned with economic conditions

and business trends over time.

Depends on how quickly

investors can update themselves.

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Lastly, factories and warehouses.

This asset type is seeing rising demand,

whether in surrounding provinces, Rayong, EEC.

Purple-zoned areas,

or previously purple-zoned,

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still have fair demand.

Because Thailand

remains attractive for foreign investments

and as a manufacturing base.

But often, prices in these zones

skyrocket beyond reach.

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Those with knowledge

can creatively structure

their business to comply with laws.

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But many

fall for scams,

paying "fees" and losing money for nothing.

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Warehouse assets

are another interesting investment.

Yields are higher

than residential assets,

around 8–15% per year.

But you must know locations

and workforce sources.

Not every area is viable.

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There are actually many more details

for each asset type,

but let’s stop here for now.

I’ll gradually share more later.

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Next year,

this industry might still remain steady,

not booming much.

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But there are still golden opportunities

for those well-informed

and decisive.

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If you’ve survived this year,

you’ve done great.

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But next year,

you’ll still have to grit your teeth and keep fighting.

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For those who finish reading,

wishing you happiness and prosperity.

If you finish reading and share,

wishing you even greater wealth.

Sathu (Blessings).

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Happy New Year.

Ex Granchiang, One Day, Thousand Stories

CEO of Matching Property Co., Ltd.

Does everything in the real estate world.

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🅗🅐🅟🅟🅨 🅝🅔🅦 🅨🅔🅐🅡 ➋⓿➋➍

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Feel free to chat at

https://www.facebook.com/Ex.MatchingProperty/posts/pfbid02Po6SJ7tZMLAiZezTG4Es1TLhPEhSuAW22T5Jf7keA7FGvJCe4hn9rdw5yX1U2Vh9l