There are lots of analysis and talks to what will happen to the Bangkok property market in 2020. It seems that everyone has an opinion on the matter, and everyone thinks they know best.
However, many of those analyses are narrow-minded and seem to miss the big picture. Some major factors will shape Bangkok’s property market in 2020. Here we take a look at each one of them and how they will affect particular parts of the property market.
The China-US trade war is raging, and there aren’t any notable signs that will stop at any time soon. At least not until the Trump administration has the reigns in the US. That makes Chinese companies search for ways to deal with that.
As a direct consequence, many Chinese companies started moving to Thailand. Most of the companies first open headquarters in Bangkok, then decide whether they will build the remaining infrastructure within the city borders or elsewhere in the country.
Almost all property experts agree that in 2020, the demand for commercial facilities and offices will increase. They project strong growth in this section.
Even though that MMF and World Banks estimate that Thailand’s economic growth will be 3%, that doesn’t reflect the situation in Bangkok. However, the truth is that Bangkok’s economy grows at a much higher pace. If it’s 3% countrywide, Bangkok can expect almost 5% economic growth.
That economic growth will reflect with new job openings, which will require an influx of workforce that will come from rural areas. And that means increased demand for low and medium-priced properties.
Remote Workers, Digital Nomads, and Startups
The cost of doing business and living in Thailand, including Bangkok, are some of the lowest in the world. Low living costs, low business costs, supported with great infrastructure, and excellent tax policy act as a magnet for a new generation of remote workers that like to travel and work.
Even startups like the idea of being someplace more affordable than San Francisco or London, where the costs of living and doing business are exponentially lower. Then there is the increase of local talent, which is also something that startups cherish a lot.
City Policies Boost Property Market Development
The City of Bangkok has already allowed the development of new residential projects in areas near new transit lines. The news has been shared by Chukwan Nilsiri, director of the city planning division for the Bangkok Metropolitan Administration. According to MS. Chukwan, both residential and commercial development will take place in sub-CBD and central CBD locations.
The year 2020 will be a very exciting year for property development in Bangkok as every sign points towards growth. Furthermore, banks expect to boost the property market growth by keeping their interest rates low, which is in line for their 2020 projections. The only mystery is which sector will grow fastest and will provide the highest ROI.