The housing market in Bangkok experienced rapidly rising prices during the first half of last year which were mainly attributed to Government incentives which came to an end last March. Prices increased in spite of political unrest in April and May which did not cause panic selling although it did delay some projects. Many new housing developments were begun last year, and although prices are expected to continue increasing they will not rise as rapidly as last year. Surveys have shown that that there is not an oversupply in the Bangkok condominium market and that property investment is can be expected to give an average total yield of 11.5 % per year.
New regulations brought in this month prohibit banks from lending more than 90% of the value on new condominiums costing less than 10,000 baht. These measures were brought in to deter property speculators who were finding the terms just too attractive to resist. Condominiums in the city have an average 21% vacancy rate, although investors should do their research thoroughly as some areas are showing much higher occupancy rates. Ramkhamhaeng has an occupancy rate of 91% and gives a total yield of 11.7%. Occupancy in Ratchada-Lat Phrao is 86% and gives a total yield of 11.9%.
The most popular properties are one-bedroom units with the market for larger units being slower. These larger units may offer some appeal to investors as developers have been offering extra incentives such as furniture packages and guaranteed yields. Demand has remained high enough to deter developers from offering discounts.
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