Bangkok One of the Most Affordable Top Cities in the World - CBRE Report
Bangkok is ranked the 33rd of the 35 most expensive cities according to the latest research by CBRE, while Hong Kong has continued to be the world’s most pricey place to live.
CBRE’s fifth annual Global Living Report profiles property markets from 35 major cities. The focus of the report is on investments in urban areas such as retail, housing, cultural centers, transportation infrastructure and connectivity as key factors of economic growth.
Topping the chart in the survey is Hong Kong, at an average of US$ 1.23 million per residential unit (about 39.52 million baht). The second ranked city is Singapore (US$874.372 per unit or 27.97 million baht) followed by Shanghai (US$875,555 per unit or 27.92 million baht)
Bangkok’s property price ranked 33rd with an average of US$106,383 per unit or 3.4 million baht.
The capital of Thailand, Bangkok, includes main business districts and the Stock Exchange of Thailand. Bangkok is also one of the world’s top tourist destinations due to its vibrant street life, variety of attractions and multitude of shopping options. Travelers often stop in Bangkok as the stepping-stone to explore Thailand and Southeast Asia.
Bangkok’s condominium market has continuously increased over the past few years, with a strong demand from foreign markets and speculative investment.
Government spending on many large infrastructure projects has pushed market interest. Projects such as new mass transit lines due to open in 2020 with many lines that will be direct links to large populated areas. A new high-speed railway will link Suvarnabhumi, Don Mueang and U-Tapao airports by 2023.
Bangkok’s rapidly expanding condominium market has been boosted by steady demand from international buyers, which include bulk sales to Chinese buyers. Over 50,000 condominium units were completed in 2017 and a total supply of 645,000 units.
Recently the Bank of Thailand disclosed tighter mortgage rules that are intended to enhance financial stability in long term housing markets and curtail speculation. Loan-to-value (LTV) radio will be restricted to 80% on properties that are purchased less than three years after a first mortgage and are valued above 10 million Thai baht (about US$306,000) A third home only qualifies for a 70% LTV.
The residential market in Bangkok is likely to slow down in 2019 as a result of the new mortgage restrictions. The continued rise in land prices will also cause developers to be cautious in launching new projects and securing new land sites.
Bangkok in Numbers:
- Unemployment rate: 1%
- House price growth last year: 4%
- Average Yield: 4.6 %
- Share of Private renters: 30%
- Average Primate property price (USD): $455,927
- Meal for 2, mid-range restaurants (USD): $26
- Cappuccino (USD): $2.41
Author: Patrick Lusted