Best real estate in Thailand

As more people live in city condominiums, units will likely become smaller in line with consumer budgets, according to Associate Prof Manop Bhongsadadt of Chulalongkorn University. Land prices are now significantly higher, he said, so residential units offered to consumers may shrink from the current smallest room size of 20-21 square metres. The Building Control Act allows residential units as small as nine sq m.

Recent research by an independent real estate consulting firm found that about 20% of newly employed graduates tend to buy a condominium before a vehicle. The result is different from previous studies that showed about 99% of people in their first jobs would opt to buy a car before owning a place to live.

The new research also shows that residents would shift to owning units instead of renting because of monthly payments on par with rent costs.

Mr Manop said these two trends would contribute to the growth of condominium registration to match or exceed the amount of townhouses and single houses in the future.

Currently, townhouses account for around 28% of total new registrations, single houses 30-35%, condominiums 20% and the rest other types of real estate.

Condos would account for about 20,000 of 70,000 housing registrations this year, or almost 30%. Bangkok residents would be able to buy a condominium at a cheaper unit price but higher price per sq m. They would be offered smaller units with prices that match to their budget. However, they have to trade off with the worst quality of life.

Mr Manop suggested the government allow developers to build higher buildings with more usable areas if developers agreed to allocate more open space with the greenery.

Bangkok residents have public parks per head at only two sq m per head only half of the world standard at four sq m per head, he added.

This article was first published in The Bangkok Post 29th June 2007