Bangkok home prices dive most among regional peers as pandemic carries on
Bangkok fared worst in Southeast Asia in a new study on home price changes amid the Covid-19 pandemic called Global Cities Q3 2021 conducted by property group Juwai IQI.
The study found that based on data by realty agency Knight Frank, Bangkok home prices dropped by 6 per cent in the first quarter of 2021 year-on-year, with reference to condominium prices in the central business district.
This is in stark contrast with a 7.6-per cent rise in Singapore, a 5.9-per cent appreciation in Kuala Lumpur and still a 0.7-per cent improvement in Ho Chi Minh City, the study showed. Only Tokyo experienced a larger drop than Bangkok within Asia-Pacific, with home prices nosediving 7.4 per cent in the period.
Monetary and fiscal stimulus helping the housing market
In cases where home prices have appreciated, the study attributed that to monetary and fiscal stimulus measures by governments, capital gains from a burgeoning stock market and excess cash amassed during long lockdowns.
“Covid reordered many markets and stimulated new demand trends as buyers reevaluated their living situation and sought out property that meets their new needs,” the study said.
Thailand is missing a clear recovery strategy
However, in Thailand, the real estate market has struggled during the pandemic because of the country’s strong dependence on foreign buyers, particularly Chinese, as well as local economic weakness and the government’s limited ability to provide economic stimulus.
The Thai government is now exploring ways to encourage inbound investment, including raising the foreign ownership quota and permitting foreigners to own land for the first time. However, given the unpredictability of the Covid-19 pandemic, thing are pretty much in limbo now.
While, for example, Malaysia and Vietnam are also suffering from lockdowns and economic disruptions, asking prices for homes have been increasing there due to greater confidence that recovery will set in soon amid targeted vaccination campaigns and impactful stimulus measures, the report noted.
Bangkok fared worst in Southeast Asia in a new study on home price changes amid the Covid-19 pandemic called Global Cities Q3 2021 conducted by property group Juwai IQI. The study found that based on data by realty agency Knight Frank, Bangkok home prices dropped by 6 per cent in the first quarter of 2021 year-on-year, with reference to condominium prices in the central business district. This is in stark contrast with a 7.6-per cent rise in Singapore, a 5.9-per cent appreciation in Kuala Lumpur and still a 0.7-per cent improvement in Ho Chi Minh City, the study showed. Only...
Bangkok fared worst in Southeast Asia in a new study on home price changes amid the Covid-19 pandemic called Global Cities Q3 2021 conducted by property group Juwai IQI.
The study found that based on data by realty agency Knight Frank, Bangkok home prices dropped by 6 per cent in the first quarter of 2021 year-on-year, with reference to condominium prices in the central business district.
This is in stark contrast with a 7.6-per cent rise in Singapore, a 5.9-per cent appreciation in Kuala Lumpur and still a 0.7-per cent improvement in Ho Chi Minh City, the study showed. Only Tokyo experienced a larger drop than Bangkok within Asia-Pacific, with home prices nosediving 7.4 per cent in the period.
Monetary and fiscal stimulus helping the housing market
In cases where home prices have appreciated, the study attributed that to monetary and fiscal stimulus measures by governments, capital gains from a burgeoning stock market and excess cash amassed during long lockdowns.
“Covid reordered many markets and stimulated new demand trends as buyers reevaluated their living situation and sought out property that meets their new needs,” the study said.
Thailand is missing a clear recovery strategy
However, in Thailand, the real estate market has struggled during the pandemic because of the country’s strong dependence on foreign buyers, particularly Chinese, as well as local economic weakness and the government’s limited ability to provide economic stimulus.
The Thai government is now exploring ways to encourage inbound investment, including raising the foreign ownership quota and permitting foreigners to own land for the first time. However, given the unpredictability of the Covid-19 pandemic, thing are pretty much in limbo now.
While, for example, Malaysia and Vietnam are also suffering from lockdowns and economic disruptions, asking prices for homes have been increasing there due to greater confidence that recovery will set in soon amid targeted vaccination campaigns and impactful stimulus measures, the report noted.
