The Bangkok condo market has started the recovery process with several notable developments launched in the 1st quarter of this year, shows research from Edmund Tie & Company’s. In addition to this, presales were also up during the start of the year.
There were 2,367 new condominium units launched in the 1st quarter, a significant jump from the number launched in the 4th quarter of last year. However, the new condo supply decreased by 4.4 per cent when compared to the same period of last year.
The Sukhumvit area had the largest share of the newly launched condo supply within the CBD in the 1st quarter. A total of 76.8 per cent of CBD launches were in this area with Central Lumpini having 18 per cent and the Silom-Sathorn areas accounting for 5.2 per cent.
The average presales level at proposed condo projects in Bangkok’s CBD market rose by 3 per cent this year when compared to the 1st quarter of 2016. Demand for super luxury units in CBD areas is still high and some developers report selling up to 80 per cent of their projects prior to launching, according to research from Edmund Tie & Company.
It was noted that Bangkok’s condo market showed signs of improvement in the 1st quarter after many project launches were pushed back during the mourning period in the 4th quarter of last year. Several major developers are expected to bring new projects to the market this year.
It is also predicted that sales and marketing activities for condo developments will return to normal and demand for new units could also increase, as consumer confidence continues to recover. The CBD market is likely to be the most active since condo buyers and investors are most confident in these locations, especially when it comes to high-end projects. This segment will see the best take-ups rates in all of Bangkok in 2017.
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