Thailand Property Takes Urban Flight

Thailand’s resort property markets have seen a significant shift in buyer characteristics throughout the course of the pandemic’s eighteen months. Thais have traveled to the country’s leisure areas and bought up vacation or second homes due to a strong domestic demand surge. According to a new report provided by Thai property site FazWaz, online inquiries for the famous Thai coastal resort region of Hua Hin have increased substantially year to date.

By tracking the data from Q2 2020 to mid-2021 on buying motivation of either a holiday home or for investment purposes, we can see a change in behavior towards lifestyle purchases in Phuket, Koh Samui and Pattaya, with the sharpest uptick being Hua Hin.”

– Brennan Campbell, co-founder and CEO of FazWaz

In Phuket, wherein international purchasers have heavily leveraged the resort-grade property market over the last ten years, Boon Yongsakul, Chairman of Boat Pattana, said that “our Shambala luxury pool villa project in Bangtao Beach originally targeted legacy international customers in the Laguna Phuket region.” However, from the middle of last year, we witnessed a significant inflow of Bangkok purchasers, which has fueled sales momentum to date”.

One of the most notable ones that have changed among Thai buyers is their demand for resort luxury, high standard of living, and outdoor spaces. If you go back 5 years, island real property was dominated by investment-type condos; now, it is dominated by single-family houses and holiday homes,” Mr. Yongsakul said.

In establishing the new normal for Thailand’s resort property sector, the increasing pollution issues in Bangkok affect real estate purchasing prices. Another is the pandemic ‘Zoom-factor,’ which has spawned what we anticipate will be a longer-lasting trend of home-based work. Developers of real estate are now confronted with shifting customer preferences for recreational spaces and flex-specs.

The trend for lifestyle changes is evident in Hua Hin, where real estate developer Tjeert Kwant, CEO of Banyan Residences, reports a substantial increase in purchasers wanting to leave the city and live a healthier, active lifestyle. “This has been the primary motivator for us in terms of families and couples seeking large second homes outside of Bangkok.”

Brennan Campbell of FazWaz continued,

Looking at our Insights data for Hua Hin, 64% of transactions are now from the domestic market. The impact of the pandemic is going to have a lasting impact on what drives Thais to purchase property and there is one thing for certain, the times are changing fast, and moving out of the city at a pace we have not seen before.

Source: C9 Hotel Works

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