5 things you should know about Bangkok’s residential market
5 things you should know about Bangkok’s residential market
Stronger resale market, fewer launches
Bangkok’s residents may still be donning somber colours following last month’s tragic news, but the city’s property market is still relatively lively.
A strong demand for condominium resale units kept the Thai capital’s real estate sector resilient in the third quarter of 2016, according to the latest issue of the Edmund Tie & Company’s Real Estate Times. In fact, the resale price index for the city hovered at 139.3 in Q3, compared with 133. 4 in the previous quarter.
Here are five other important insights from the report:
1. All roads lead to Sukhumvit
A staggering 93.9 percent of new supply in the city, representing 911 units, went to the Sukhumvit area in the third quarter. The district is the “most established residential area” for both locals and expatriates, the report noted. “While demand for upscale condominium units is expected to remain strong, buyers are likely to be more selective on the location, specifications, and prices of the units,” the researchers said.
2. Higher take-up
The average take-up rate of newly launched condominium projects in the Bangkok CBD stood at 67 percent in the third quarter, up from the 54 percent recorded in the second quarter.
3. Hotter prices
The average unit selling price per square metre for new Bangkok launches in the third quarter stood at THB245,900 (USD7,000), up 9.3 percent year-on-year.
More: Bangkok real estate: what you need to know about the market right now
4. Fewer launches
Only five new condominium projects, representing 970 units, were launched in the Bangkok CBD in the third quarter. This represents a decrease of 20 percent on a quarterly basis; around 1,216 units were launched in Q2.
5. A time to grieve
The researchers expect the supply of condominium units to expand at a slower pace in Q4, primarily due to the slowdown in the overall condominium market in Bangkok. “It is expected that local demand will be subdued during the period of national mourning and leading condominium developers are taking this time to review their business strategies and when to launch new projects,” the report noted.
Read next: Bangkok’s Thonglor in high demand from buyers and renters
Source: Property Report