The economies in Southeast Asia continue on their impressive runs and the latest highlighted top performers are Thailand and Singapore. So it came as no surprise that the two countries are reaping the benefits, foremost of which are surging property prices recorded in the first quarter of 2018.
In Bangkok, the real estate market is looking at sky-high price tags that analysts said have been largely fuelled by the perceived gains of the national economy.
“Bangkok’s property market is going from strength-to-strength,” Property Report said, citing a newly released property index that indicated the Thai capital saw a notable price growth during the first three months of 2018.
The index jumped by eight points in the January-March period as land prices soared in key Bangkok districts, and where “vertical living” has become increasingly popular. Condominium units are in high supply in the city and preferred by developers for promises of greater profits.
The same scenario is mostly in play in Singapore. Property prices have been on the rise in the city as observed at the start of the year. In general, it is the residential sector that is driving up the value of properties and where the occupancy rate is at significantly high level.
Buoyant Singapore Market
The overall residential market posted a leap of 92.6 percent by the end of March 2018, improving from the previous 92.2 percent registered in December 2017. It is in the premium market where growth has been most remarkable that the occupancy rate is pegged at a low level.
Prices of high-end properties in Singapore surged by up to double digits and partly to blame is inadequate supply, Property Report said in a related story. In addition, the positive market sentiment convinced many individual re-sellers to put their properties on sale, and expectedly asking for premium price tags.
The situation in Singapore “continued to be buoyant,” the report added, pointing to the city’s generally high occupancy rate as best indicator of a vibrant market condition.
More impressive is Bangkok’s case, where the property market has reached levels of sophistication. The economy is improving and the city’s infrastructure, specifically the mass transit network, provides ample support to the property development projects, at the same time giving higher value to real estate products.
The country’s GDP is forecasted to register a 4.3 percent increase this 2018 and developers took notice. The race is on to build more and the spotlight is on condominium, which accounted for nearly 90 percent of the new residential units delivered recently.
These units are not cheap and they sell, thus delivering the promised earnings to property developers placing their bets on Bangkok.