Research from Nexus Property Marketing showed that the residential property market in Bangkok will continue growing at a steady pace. New supply will likely add 50,000 more units this year while prices could rise upwards of seven percent. Inner-city condos, especially high-end units, will record larger increases in price than those units on the outskirts of the city or in the lower-end segment of the market.
Location continues to play a key role in demand. Super prime locations like Lang Suan, Ploen Chit, Sala Daeng, Phrom Phong and Thong Lo are the most in demand while riverfront locations are also eye-catching among many investors, Nexus Property Marketing researched revealed. However, land availability in these locations is scarce and it is unlikely large amounts of new supply will come online in super prime areas.
According to Nexus Property Marketing, the top three locations for new supply in 2015 were Phra Khanong – Suan Luang, Tiwanon – Rattanathibeth and Phetchakasem – Thon Buri. These three zones all happen to be along an extension line of Bangkok’s mass transit system.
The supply numbers in Bangkok’s property market continue to increase but not as fast as in years prior. The accumulative number of condominiums that came on the market in 2015 rose 13 percent from 2014 totals. However, condominium supply growth has slowed down from the five-year average of 22 percent. Despite the slowdown, supply suits the overall economic and market situation in Thailand, Nexus Property Marketing added.
Condominium demand also posted solid numbers in 2015. The average sale rate of condominium’s launched in 2015 was 59 percent and the overall sold rate came in at 89 percent. Some segments of the market are struggling to realize true demand with the mid- to low-end condominium market being the most vulnerable. Affordability will play a key role for developers in this segment going forward. Demand in the super luxury and high-end segments appears to be much more stable at the moment as Thais as well as overseas investors continue to show interest for condo units in this segment.
