Population Change in Asia is Set to Transform Thailand’s Real Estate Sector in Coming Years, says Proud Real Estate

New Delhi, October 23, 2024: Thailand’s real estate sector, estimated to be worth US 2 trillion, is on the brink of significant transformation, driven by three emerging megatrends: multigenerational living, semi-retirement, and hospitality-residence hybridization. These trends, identified by Proud Real Estate Plc, a leader in the SET-listed property market, are set to redefine the landscape in response to a shifting demographic and the growing popularity of second-home tourism.

Ms. Proudputh Liptapanlop, Director of Proud Real Estate Plc, emphasized the significant impact of demographic shifts on the real estate sector. Thailand is experiencing slow population growth and a rising proportion of elderly citizens, with the over-60 population doubling from 10% in 2005 to 20% in 2023. According to the UN World Population report, Thailand is currently classified as an aged society and is projected to become a “super-aged society” by 2029, with 20% of the population over 65. These demographic changes, coupled with economic challenges such as the ‘middle-income trap,’ have weakened the purchasing power of key market segments like millennials and Gen Z. As a result, the property development sector faces new challenges in adapting to these evolving market conditions.

Despite these hurdles, the real estate sector remains a crucial driver of the Thai economy, contributing approximately 10% to the GDP. Ms. Proudputh remains optimistic, seeing these challenges as opportunities to innovate and adapt. She envisions these megatrends as turning points that could lead to a revitalized market, positioning the sector for a rebound that leverages crises into transformative prospects.

Proud Real Estate has identified a significant shift in home-buying dynamics, with multigenerational households emerging as a key trend. This new pattern sees family members across generations acting as co-decision makers in property purchases, with older generations maintaining substantial purchasing influence. According to UNFPA data, 34% of Thai households are currently multigenerational, a figure expected to increase in tandem with the growing elderly population. This trend aligns with broader Asian patterns, where 43% of households feature intergenerational living arrangements. The influence of close family ties extends beyond housing decisions, impacting choices in travel and leisure activities as well, a phenomenon corroborated by Booking.com’s market insights. This shift towards multigenerational living is reshaping the real estate landscape, prompting developers to reconsider traditional housing models and adapt to evolving family structures.

“Multigenerational living is on the rise in upscale segment,” she reveals.

To seize a new growth opportunity, the flexibility principle is put at the heart of home design that allows for functional expansion in the future to meet the needs of family members across generations. It starts with a basic layout and construction that fully support every stage of human life cycle.

Under one roof, demands vary. Gen Xers will need a home remodeling to enhance mobility with fewer obstruction and wider doorways when they experience physical health challenges. When it comes to location, millennials and Gen Zers prioritize proximity to work as they are career oriented. While Gen Alpha concerns the neighborhood safety where a high-quality school is situated.

Thailand’s aging society is reshaping retirement patterns and labor market dynamics. A 2024 Fidelity Investments study reveals that 66% of Gen-Z and Millennials favor phased retirement, with 57% planning part-time work during retirement. This trend is fostering a “semi-retirement lifestyle,” where individuals reduce work hours while maintaining income to pursue personal interests. Globally, semi-retirement is gaining traction, driven by financial needs, the desire to stay active, and personal passions. This shift highlights a growing demand for residential properties that can accommodate both work and leisure, as well as integrated medical care facilities.

Although the outlook for housing demand is sluggish, land prices especially in central business district (CBD) of Bangkok will keep skyrocketing. With such price determination, international demands will play a major role in supporting the real estate market in the medium term.

Thanks to the influx of international demands seen in Bangkok and Phuket, the use of property and length of stay has been shifted from a primary residence for full-time occupants to a secondary occupancy for semi-vacationing. As a result, mixed-use development will continue to dominate Thailand’s real estate development, offering products and services that meet the needs of all customer groups beyond residential purposes. Branded residence is leading the way along with retail and office spaces like urban and market developments in Dubai.

Proud Real Estate has redefined luxury living with its latest projects, VEHHA Hua Hin and ROMM Convent, by synergizing hospitality elements into residential offerings, based on the findings on the 3 latest trends.

VEHHA Hua Hin provides an experience akin to a high-end hotel stay, featuring unrestricted ocean views from every unit, thanks to its single-loaded corridor layout. Residents enjoy a-la-carte room services and a range of exclusive hotel services from the Holiday Inn at special rates. Additionally, residents receive complimentary access to Vana Nava Water Park for three years, enhancing the resort-like atmosphere.

ROMM Convent, located in the heart of Bangkok, is a luxury wellness residence designed to offer a “home-like feeling” with spacious living areas integrated with holistic health and wellness facilities. These include a fit lab café, a sensory garden, a wellness lounge, and a library. Unique features like meditation pods on the sky retreat offer residents a serene escape. Moreover, ROMM Convent partners with one of Asia’s most prestigious hospital networks, BDMS, providing medical care right at the doorstep through the multi-specialty BNH hospital. Residents benefit from the VVIP program and receive a 20% discount on services, addressing the increasing demand for health and wellness in the post-COVID-19 era.

Corporate Comm India (CCI Newswire)