Frasers Property (Thailand) Public Company Limited launched REDPAPER, an insight report featuring data and trends in real estate industry in Thailand, particularly in the residential, industrial and commercial sectors, with the publishing of its first article on emerging homebuying trends in 2022. The residential market this year will continue to see a greater variety of housing options as developers shift business plans and marketing in line with changing consumer trends triggered by adjusted lifestyles due to COVID-19 or ‘Now Normal’. Demand for low-rise projects such as single-detached houses or townhomes are on the uptrend for offering more living space and are seen as better value-for-money options.
In addition to the significant impact on economy and society, the pandemic has altered lives in all aspects. People are focusing more on health, safety and wellbeing, resulting in the rising demand for homes that can accommodate changing lifestyles where work, study and recreational activities can all take place within the residence.
REDPAPER is based on a survey conducted in late 2021 with a sample of 1,700 people aged between 22-53 years with a monthly income range between THB 35,000 to THB 160,000 . Prospective homebuyers can be categorized into four lifestyle segments, namely the Outgoer, the Wellbeing, the Well-Organized and the Homebody, representing 21%, 23%, 24% and 32% of respondents respectively. All of these prospective buyers indicated the need for ample living space to conduct various activities. REDPAPER also found that there is a significant tendency among respondents with the Homebody, the Well-Organized and the Wellbeing profile traits to buy a single-detached house because these consumers are likely to spend more of their time at home. The prevalence of working from home or hybrid working model is a factor influencing these consumers to buy this type of housing.
Additionally, the survey showed that homebuyers consider value for money as their top priority. They are not looking for houses with the lowest selling price. Instead, they take a holistic view of what they are getting for their money, such as the quality of construction materials, functional layouts and space utilization. The second factor that homebuyers consider is safety and wellbeing. High standards of hygiene, strict security measures in the common areas, and installation of smart home systems as well as a well-ventilated home design with an effective ventilation system are desirable to allow residents to feel safe at all times.
Sustainability is also taken into consideration. Consumers prefer houses that are energy efficient and built using environmentally friendly construction materials coupled with green space. Last but not least, they look for a house that can meet the needs of multi-generational residents and pets. Layouts and materials used for the interiors must also be safe for all family members.
The demand for single-detached houses have increased to 21% from last year. Of all the five factors, buyers looking for single-detached houses placed value-for-money pricing and safety (Save & Safety) as their top priorities. In addition to the above-mentioned factors, consumers prefer a single-detached house as it offers more privacy and can be designed with flexible and functional layouts allowing residents of different age groups to easily adapt for their needs.
The demand for townhomes similarly rocketed, with 48% of prospective homebuyers interested in townhomes within the price range of THB 2-5 million. An important attribute that townhome buyers look for is value for money. For younger consumers and single families, townhomes sold at the price of THB 3 million and above are attractive as they offer more useable spaces but are still located near urban transport networks, compared to the prices of single-detached houses or condominiums in the city.
Based on the survey findings, homebuyers aspire to live in residential developments that are multi-functional and can cater to their lifestyles, on top of promoting their quality of life with common facilities such as green spaces, club house and gymnasium. More housing projects will continue to be developed near strategic locations with good accessibility and amenities as homebuyers take these factors into account when making purchasing decisions.
REDPAPER is Frasers Property Thailand’s new insight report on the local real estate industry. Backed by facts, trends and analysis in the residential, industrial and commercial sectors, a series of articles will be published regularly with commentaries from market leaders. For more on REDPAPER, please visit redpaper.frasersproperty.co.th.
