Condo market heats up in CBD
Huge investments to launch new condominium projects in Bangkok's central business district (CBD), near the Skytrain and subway, between now and 2009 will result in some stiff competition, says Jones Lang LaSalle Research. Most developers will avoid direct price discounts for their clients.
The research group also predicted that price levels of condominiums inside the competitive zone would change dramatically, despite the possibility of the resale market attracting some of the demand and diverting it from the first-hand market.Meanwhile, completion of the BTS and MRTA lines has created a development opportunity for condominium projects away from central Bangkok. The eventual extension of their routes will widen potential areas for growth and result in a slowdown in both supply and demand in central Bangkok in the medium to long term. The research shows that a total of 12,160 units are due for completion by 2009. Assuming no construction delays, this year alone will see 6,350 new units, representing the largest number completed in a single year since 1981. The remaining 5,810 units are scheduled for completion starting next year: 3,675 units in 18 projects in 2007, 1,740 units in two projects in 2008 and 397 units in one project in 2009. Last year, sales of new condominium units reached 5,510 units, a slight decrease from the 5,740 units sold in 2004. The average asking price rose from Bt65,800 per square metre in January 2005 to Bt72,100 in January of this year.
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