2016 was an interesting year all around, and Thailand was not excluded from the world`s highs and lows of optimism and perssimism regarding the market place, both local and global. Events in Thailand, including the passing of the much-loved King Bhumibol. Those events created an unsteady end to the year with investors anticipating a market crash which never materialised.

FOREIGNERS CONTINUED BUYING AND INVESTING THROUGHOUT 2016

Turbulent times, both real and threatened, did not stop foreigners from purchasing property and making investments in Thailand throughout 2016. Investment sales reached 160bn THB in 2016, and the largest investment deal ever recorded was for 2.6bn THB in the same year.

Real estate continued to expand steady, albeit if a little shakily, with the stronger baht making foreign investors more cautious than they had been before. Since the situations both at home and abroad have settled down somewhat and the outlook remains optimistic, the current state of affairs promises that expension will continue in 2017.

THE LUXURY REAL ESTATE MARKET SUCCESSFULLY RODE THE STORM IN 2016

In Bangkok, the resale market for high quality condo units in central Bangkok took precedence over newer, extremely expensive units. The average price for high-end resale condos has been increasing steadily and robustly over the last 5- 10 years, and this trend continued into 2017. "Low hanging fruits" of the market have been picked off by savvy investors.

General speaking, newer projects with strong branding and higher quality standards performed well at prices above 300,000 THB per sqm, whereas others faltered in the market due to rising land prices.

The stronger baht and increased laws regarding foreign ownership of property also presented new challenges to the luxury real estate market, discouraging the usual number of investment in luxury condos and rentals from abroad. And homegrown Thai investors are starting to see value in the prospect of renovation of older units. However, Thailand still remains one of the easiest countries in Asia for foreigners to buy and own property in, so the setback will probably be temporary, economists say.

THE GOVERMENT`S AFFORDABLE HOME LOANS CAMPAIGN PUT FIRST-TIME HOME BUYERS INTO THE PICTURE

2016 witnessed the Thai government`s Affordable Home Loans Campaign, with a budget of THB 32 trillion, to help first-time home buyers with low incomes afford their first property. Simultaneously, Baan Pracha Rat enabled first-time home buyers to obtain low mortgages, which encouraged developers throughout the country and put more value into the marketplace.

This upcoming year promises to continue along the same lines, as the Millennial generation poises to buy homes for the first time.

PROPERTY MARKET SLOWED IN 2016; LIKELY TO PICK UP AGAIN IN 2017

In 2016, many people just weren`t sure in what direction the future was going on, making long-term planning and decision-making a challenge.

Signs of this can be seen in many of the facts about 2016`s real estate, where increased caution and hesitancy are clear. For example, price rises for Thai townhouses decelerated to 3.1%, and single detached houses, which had a price growth of 6.5% in 2016, dropped by 0.1% in 2016. Bank of Thailand Senior Director, Don Nakornthab, warned investors to exercise caution, as he said: "The economy remains slow."

WHERE IS THE REAL ESTATE MARKET HEADED IN 2017?

Unlike last year, we are beggining in this year with a far clearer picture of where we stand and where we`re likely to be by 2018.

Tourism is forecasted to increased by 9% - perhaps not as strong and fast a recovery as some of us would wish, but nevertheless a definite recuperation and an indication of a healthier future. Economists tell us that we may soon see up to a 50% increase in existing home sales as confidence in the improving economy grows strong. Rental property willl remain in high demand.

Altogether, 2017 spells confidence, growth, and improvement in Thailand`s Real Estate marketplace. A wise investment, prudently made and well-judged, could very well be excellent decision in 2017.

Property investors should be selective in their approach and use the advise of a well established real estate agency in Bangkok.