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News Release

Bangkok

FLOODING: Mixed card on Bangkok real estate


Among major property sectors in Bangkok, the housing market has been hit hardest by the flooding as many major housing areas across the city are now submerged under water. On the other hand, there are a few property sectors that are benefiting from the flooding, Jones Lang LaSalle reports.
 
Residential markets hit hard
 
House sales in the areas affected by floods have completely stopped.  Sales in areas that have not yet experienced flooding are on the same trend as buyers suspend their purchase decision and wait to see if or how floods will hit the housing project that they are interested in.
 
The Bangkok condominium sector has been in a better position due to the general perception that high-rise properties would be less affected by floods. However, sales in condominium projects that are located in the flooded areas have inevitably been affected by the flooding.
 
Mrs. Suphin Mechuchep, Managing Director of Jones Lang LaSalle, said, “Some residents in Bangkok who live in the currently flooded areas may consider buying condominiums in low-risk locations as a second home in the future. However, we do not expect concerns over future floods will result in a dramatic shift in residential demand from landed houses to high-rise condominiums.”
 
“Although there is a concern over whether the flooding that the city is suffering from is an isolated incident, the Thai government is expected to do its best to protect Bangkok and its vicinity from future floods more efficiently,” she explained.
Effects on hospitality markets vary
Andrew Langdon, Senior Vice President of Jones Lang LaSalle Hotels, said “Hotels in Bangkok are experiencing a softening in occupancies as international tourists and business travelers postpone travel to the city."
 
"On the other hand, Bangkok serviced apartments are receiving strong short term demand from the domestic market and expatriates that have been displaced form homes affected by floods. The flooding also benefits hotels in the destinations of Hua Hin and Pattaya which are witnessing significant increases in occupancies as Bangkokians depart from the city to a safer place.”
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