Bangkok condominiums show signs of growth

By The Nation
Published on August 25, 2008

Amid an increase in construc¬tionmaterial costs and the eco¬nomic slowdown, the Bangkok condominium market showed positive signs of growth in the first half of the year.

Knight Frank Thailand research shows total supply in the market continuously increased with about 10,682 units of new supply entering the market in the first half of the year. These only include condominiums in the central business district, Sukhumvit, Rama III, Riverside and areas not too far from downtown.

Compared to the total new supply last year, which stood at 20,744 units, new supply in the first two quarters already repre¬sents 52 per cent of last year's figure.

Despite the economic slow¬down and more careful spend¬ing by consumers, condomini¬ums in Bangkok are likely to have an average sales rate of 80 per cent in the first six months of the year. In the first half, 15,268 units were sold, which is 43 per cent more than new supply.

Knight Frank's survey shows demand for new condominiums is good despite political insta¬bility and high inflation.

Key areas for new condo¬minium development in the first half of the year included Ratchadapisek, outer Sukhumvit, Krungthonburi and Lad Prao.

Condominium projects launched in the first half of this year comprised mostly smallsized units, such as studio and onebedroom units.

The average selling price per square metre in the first half of the year increased 24 per cent compared to the same period last year.

In the second half, the out¬look for the Bangkok condo¬minium market will be influ¬enced by four factors:

1. Prices will continue to increase due to the rise in con¬struction costs.

2. There will be fewer new condominium projects in down¬town areas due to limited land availability.

3. The slowdown in the econ¬omy and higher interest rates may have a negative impact on buyer demand.

4. Locations near BTS and MRT stations will see high demand from buyers.

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Bangkok condominiums show signs of growth

Amid an increase in construc¬tionmaterial costs and the eco¬nomic slowdown, the Bangkok condominium market showed positive signs of growth in the first half of the year.

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