The 2nd quarter was relatively quiet for Bangkok’s condo market in 2017 with new unit launches down by more than 50 per cent when compared to the previous quarter, shows research from Edmund Tie & Company. In the company’s quarterly Real Estate Times report, it was noted that only 4 condo developments were launched in the CBD in the 2nd quarter.
In addition to this, the number of units launched was down on a yearly basis, falling by 1,216 units when compared to the 2nd quarter of 2016. The 3rd quarter is expected to be busier with developers set to launch a substantial number of new projects. WISH Signature II from Siamnuwat and Life One Wireless from AP Thailand are among the notable scheduled launches.
All project launches in the 2nd quarter happened in the Sukhumvit area and it is likely developers will keep focusing on this part of the city for the foreseeable future. A combination of available land and access to current and planned public transport has made it popular with both developers and buyers.
Looking ahead, developers are expected to target areas outside Bangkok’s CBD, according to the Edmund Tie & Company report. Prime CBD land prices in Bangkok will keep rising as demand for downtown condos is expected to remain strong during the remainder of 2017, but there will be fewer condo launches in this part of Bangkok.
Demand will be strongest for high-end condos, however, buyers are likely to be more selective about the location, specifications and prices of these units. This means developers will have to pay more attention to the details of their projects to ensure success.
Meanwhile, the average unit selling price in the CBD district should continue to increase this year and into 2018 while demand for new units is expected to remain robust. In another sign the real estate market is recovering, sales and marketing activities for condo developments are returning to normal, shows the report.
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