More than 10 percent fewer condominiums were launched in Bangkok during the first four months of 2015, compared with the same period last year, according to data published by the Real Estate Information Center (REIC).
Samma Kitsin, Director General, whilst noting how mass-transit projects are a key driver of demand, reported that new housing supply in Greater Bangkok during the first four months of 2015 was 27,360 units, down by 9.4 percent from last year.
He added that low-rise units accounted for 11,270 units, which was down 8 percent, while new condominiums had reached 16,090 units, down 10.5 percent year-on-year.
Despite this apparent slow start to the year, Samma predicted new housing units will grow by 10 percent in 2015, from 51,600 units last year.
He expects new condominium launches will decline by between 5.3 percent and 6.2 percent this year, from the 72,900 seen in 2014 to between 68,000 and 69,000 this year.
This, he said, was because some Thailand property developers are focusing on the middle- and high-end segments, as well as delaying launches of projects priced below THB2 million.
He told reporters: “Although the number of condo units is shrinking, the value of each project is higher. Most developers are concerned about high household debt, which greatly affects the low-end segment.”
REIC reported that the number of unsold condominiums last year stood at 57,324 units, and some 53 percent were in the budget segment.
Samma concluded that the overall residential property supply can in a slow economy if developers slow down launches in the provinces, because demand there is not as high as in the capital.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
