The local second home market is soaring
Domestic buyers rush to Thai resort destinations amid Covid fatigue and urban thefts, real estate experts say
Thai resort real estate markets have seen a dramatic reset in buyer profiles in the last 18 months of the pandemic, according to local real estate experts. A strong wave of domestic demand has led Thais to flock to the country’s leisure destinations and grab second homes or vacation homes.
According to data from Thai real estate portal FazWaz, the resort town of Hua Hin has seen buyer interest increase dramatically, based on online inquiries.
“By following the data from the second quarter of 2020 to mid-2021 on the motivation to buy a vacation home or for investment purposes, we can see a change in behavior towards lifestyle shopping in Phuket. , Koh Samui and Pattaya, with the biggest increase being Hua Hin, âsaid Brennan Campbell, co-founder and CEO of FazWaz.
A similar trend is emerging in Phuket, where overseas buyers have been the primary market for resort property for the past decade.
Boon: influx of buyers in Bangkok
Boon Yongsakul, Chairman of Boat Pattana, said his company’s Shambala luxury pool villa project in Bangtao Beach was initially aimed at foreign buyers inherited from the Laguna Phuket area.
âBut in the middle of last year, we saw a big influx of buyers in Bangkok and that has continued to drive sales to this day,â he said.
âOne of the most notable characteristics among Thai buyers that has changed is the desire to live in a resort, quality of life and outdoor spaces. If you look back five years, island real estate focused on investment type condominiums, but today it is a single family home or second home.
Worsening pollution problems in Bangkok are among the factors that play a role in the value of real estate purchases, said Bill Barnett, managing director of consultancy group C9 Hotelworks.
âAnother is the pandemic ‘zoom factor’ that created what we believe to be a more enduring trend in working from home,â he said. âReal estate developers are now faced with changing consumer tastes for flexible specifications and recreation areas. “
The trend of buyers looking for a lifestyle reset is clear in Hua Hin, where property developer Tjeert Kwant, managing director of Banyan Residences, said there has been a significant increase in the number of shoppers looking to escape the city and enjoy a healthier, more active lifestyle.
âThis has been the main driver for us in families and couples and in finding spacious second homes outside of Bangkok,â he said.
Mr Campbell said his company’s data for Hua Hin showed 64% of transactions now originate from the domestic market.
âThe impact of the pandemic is going to have a lasting impact on what drives Thais to buy property and one thing is for sure – times are changing rapidly and people are leaving the city at a rate we have never seen before. ,” he said.