House prices rose by 3.09% y-o-y in Q3 2019
Nationwide house prices rose by 3.09% during the year to Q3 2019, following y-o-y rises of 2.59% in Q2 2019, 2.29% in Q1 2019, 3.58% in Q4 2018, and 5.13% in Q3 2018. House prices increased 1.59% q-o-q during the latest quarter.
Demand and supply falling
During the first eight months of 2019, nationwide land and building transactions fell by 8% y-o-y to about THB 668.59 billion (US$ 22.15 billion), following a 7.7% increase in 2018, according to the Bank of Thailand (BoT).
Likewise, residential construction activity is now falling. Nationwide condominium registrations fell sharply by 43.1% to 39,248 units in the first eight months of 2019 compared to a year earlier, according to BoT.
Rents, rental yields: yields are good in Bangkok at 8.05%
Bangkok apartment costs are moderate, at around $3,638 per sq. m.
|Thailand.: city centre apartment, buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Bangkok||$ 436,560||$ 1,837||8.05%|
Recent news. Thailand’s economy expanded by 2.3% in Q2 and by 2.4% in Q3 2019, two of the lowest y-o-y expansions in almost five years, mainly due to slowing exports and tourism caused by the U.S.-China trade war and strong baht, according to the National Economic and Social Development Board. As a result, the government recently reduced its 2019 economic growth forecast to 2.6%, down from its earlier projection of between 2.7% and 3.2%, amidst escalating global trade tensions.
In November 2019, the Bank of Thailand cut its benchmark rate by 25 basis points to a record low of 1.25%, in an effort to buoy the slowing economy and to rein in the surging baht.