Firms shutting doors on condos

Detached-housing and townhouse projects have again become popular with developers thanks to the government's tax package, research by the Agency For Real-Estate Affairs (AREA) shows.

Last month, 24 projects totalling 5,518 units were launched in Bangkok and its suburbs, AREA said. The cumulative worth of the projects was Bt13.85 billion, it said.

Of the total units launched, 3,088, or 60 per cent, were townhouses and 1,556, or 28.1 per cent, were detached houses. The remaining number was divided between double houses and condominiums. 

Detached houses accounted for Bt6.9 billion, or nearly 50 per cent, of the cumulative value of the projects. Townhouses accounted for Bt3.5 billion while double houses and condominiums together accounted for Bt3.45 billion.

AREA president Dr Sopon Pornchokchai said property developers expect to benefit from the tax package, which has been in effect since March 30 and will expire on March 30 next year.

"Detached houses, double houses and townhouses, which will take between four and six months to construct, will be delivered to customers before the tax package expires. However, the construction of condominium takes a year to two years after pre-sale. Thus, these will not be ready for delivery before the package expires," he said.

He said the popular price range for residential projects launched last month was between Bt1 million and Bt2 million per unit, with 2,522 units sold. This range was followed in popularity by the Bt3.1 million-to-Bt4 million band with 929 units sold and the Bt2.1 million-to-Bt3 million band with 885 units bought.

Northern areas of Bangkok, such as Nakorn-In Road, Ramindra Road and Ratchapreuk Road, were the most sought-after locations with 16 of the total 24 projects launched in these areas. Rangsit-Nakornnayok Road and the Bangbuathong district were the other two hotspots with seven projects launched, while one condominium project was launched in Hua Hin.

Demand for luxury condominiums in inner Bangkok has seen strong growth this year despite limited supply, Raimon Land, a premium residential-property developer, said.

According to Raimon Land's research, five new condominium projects comprising 1,099 units were launched in inner Bangkok in the past four months. This is lower than the 11 projects, or 2,479 units, launched during the same period last year.

Compared to last year, the supply of condominiums is expected to drop this year because many property developers are finding it difficult to get land to develop luxury and middle-market condominium projects.