Property in Bangkok is expensive, and development continues to grow. Asking with that growth come skyrocketing prices. The popularity of high-end property in Bangkok is on the rise, in sharp contrast with less expensive real estate, which seems to be on the decline. There are many reasons for the uptick in high-end property, involving the influx of capital into the local economy, the growth of the tourist market, increased public transit, and Internet of Things security.
Many of these areas are interconnected, creating a cyclical effect. As money circulates within the local economy, it stimulates more growth, boosting economic sustainability.
The fact that Thailand is a huge tourist destination, along with the number of museums, sights, and other tourist attractions, plus its proximity to beaches have all drawn attention from wealthy investors. Most of the people investing in Thailand’s market are cash investors, contributing to the stimulation of the local economy, and accelerating growth and popularity.
Bangkok is popular among tourists from all over the world, and businesses are responding in many ways. Restaurants, nightclubs, cinemas, bowling alleys, aquariums, and other social gathering places litter the streets and attract all types of visitors.
Tourism also contributes to the Bangkok living experience. As travel increases, crime decreases, because illegal activity does nothing to benefit the tourist market. While driving out crime, tourism works to increase the number of local businesses, stimulating the economy, and once again, leading to growth and increased domestic happiness.
SLUGGISH PROPERTY MARKET AT LOW END
Investors in the property market in Thailand remain predominantly Thai, meaning that they have a vested interest in the development of their own country. They tend to invest more heavily in high-end properties, causing a decline on the lower end of the spectrum.
The deceleration of property growth in the low-end market has caused a spike in the high-end market because it is receiving more positive attention. Not only are they investing in their local economy, but they are also living there, increasing interest in maintaining or improving property values.
MASS TRANSIT & OFFICE SPACE
The increase in public transportation makes it easier to commute within and throughout the city. There are now five primary transportation methods throughout Bangkok including water transit, buses, and trains. As transportation in and out of the city gets more comfortable, the appeal increases.
Also, people prefer to live where they work, and public transportation makes the commute from home to work easier. Office space is in high demand, meaning that upper-class office buildings and improved architecture draw the working class into the city, which in turn increases the number of working-class citizens who desire to own property within close proximity.
INCREASED PHYSICAL SECURITY
The booming Internet of Things (IoT) sector has contributed to the increased property value in many cities, and Thailand is no different. IoT security contributes not only to the development of smart homes, enabling you to control things like lights and deadbolts with your smartphone, but it has also increased security and communication with your home. The ability to see what is going on at home while you’re away, and receive notifications when something is awry makes owning property much more appealing.
Government officials have implemented smart-city development regulations, and innovative technology like the Internet of Things enables developments to meet these safety standards, driving the market toward more modern efficiencies. Increased security also contributes to consumer confidence, and the more confident the property buyer, the more likely it is that they will purchase property in any given area.
All of the factors mentioned above contribute significantly to the city’s capital growth. As tourism abounds, transit increases and more security is implemented, the influx of capital will continue to flow.
Capital growth in the Bangkok real estate market is also on the rise due to similar markets creating more stringent down payment requirements. Places like Singapore and Hong Kong have raised mortgage down payment requirements, making Bangkok all the more appealing. Purchasing property is easier for the average citizen.
The prospect of an Asian open market, enabling increased communication and trade with other local markets, as well as Bangkok’s reputation as a low-cost destination contribute to people’s desire to purchase or invest in the local economy, leading to booming growth.
Many factors contribute to the increase in property value in Thailand and drive growth and economic stimulation. As real estate in Thailand continues to thrive, it will draw in more investors, tourists, and residents, all for the overall betterment of the economy as a whole.