THE property market enjoyed strong growth in the first quarter of this year, led by a 35 per cent jump in the number of condominium units released in Bangkok from the year-earlier period, said Surachet Kongchepp, a property market researcher.
Some 14,600 units were added to the market in the capital for the quarter, with Surachet’s research showing that up to 66 per cent of the condominium launches are near mass transit systems. This was especially evident in the area from Rama 9 Road to Hua Khwang, which saw 4,400 units released over the three months, he said. Up to 55 per cent of the units released in the period were sold, Surachet added.
Meanwhile, listed property companies have said their presales in the first quarter came in better than the numbers for the same period of last year. AP (Thailand) booked presales of Bt10 billion for the quarter, up 168 per cent from the same period of last year. Of this take, up to 64 per cent - or Bt5.2 billion – came from low-rise residential projects, with Bt4.8 billion from condominium projects.
The company has reached 30 per cent of its projected presales target of Bt33.5 billion for the year, the company’s chief executive officer Anuphong Assavabhokhin said recently.
Anuphong said the property market’s improved performance in the first quarter of this year stems from a number of positive factors, including a stronger economy, increased investment by the public sector and the low-interest rate environment.
“We believe there is plenty of purchasing power for the property industry, especially in the high-end segment where buying power is high and not much affected by the state of the economy,” he said. “This is clearly evident in the growth of our presales during the first quarter. In particular, low-rise developments have performed better, reflecting a significant change in the market.”
For the second quarter, industry competition is expected to become more intense, given the greater number of new projects slated to roll out in the period. Supply that targets consumers in the middle-to-high-end segment would continue to be well received, Anuphong said.
In 2018, the company plans to launch 34 projects worth Bt49 billion, of which four are condominium projects worth Bt19 billion and 30 are low-rise developments worth Bt30 billion.
Property Perfect Plc recorded presales of Bt4.8 billion in the first quarter, up 126 per cent from the same period of last year. Some Bt3 billion came from low-rise housing such as detached houses and townhouses, and bt1.8 billion from condominium projects, managing director Wongsakorn Prasitvipat said recently.
The company plans to open five residential projects worth Bt2.8 billion in the second quarter, three of which are single-detached house and townhouse projects worth Bt1.8 billion, Wongsakorn said. The others are condominiums worth Bt1 billion.