House prices up 3.08% during 2020
Nationwide house prices rose by a modest 3.08% in 2020, following y-o-y rises of 4.88% in 2019, 2.76% in 2018 and 3.55% in 2017. On a quarterly basis, house prices fell slightly by 0.22% in Q4 2020.
Demand and supply rising
Property credit outstanding rose 5.7% during 2020 to THB 3.27 trillion (US$ 108.52 billion), following an annual rise of 5.2% in 2019, according to the Bank of Thailand (BoT).
Residential construction is now surging. Condominium registrations rose by 21.6% to 86,117 units in 2020, according to BoT. In Bangkok Metropolis condo registrations surged almost 37% y-o-y to 57,544 units.
Rents, rental yields: yields are good in Bangkok at 8.05%
Bangkok apartment costs are moderate, at around $3,638 per sq. m.
| Thailand.: city centre apartment, buying price, monthly rent (120 sq. m) | |||
| Buying price | Rate per month | Yield | |
| Bangkok | $ 436,560 | $ 1,837 | 8.05% |
Recent news. Thailand’s economy slumped by 6.1% during 2020, its biggest fall in more than two decades, mainly due to lack of tourists and a sharp decline in exports amidst the COVID-19 pandemic. There were only 6.7 million foreign tourists last year, down from almost 40 million in 2019.
Recently, the government slashed its 2021 economic growth forecast to 2.5% - 3.5%, from 3.5% to 4.5%.
In February 2021, the Bank of Thailand left its benchmark rate unchanged at a record low of 0.5%, following three consecutive rate cuts last year.
