Thailand’s economy improved last year with several positive trends emerging, but demand for condos only saw a small increase. The number of unsold units surpassed 45,000 and something causing concern for the country’s developers, according to Colliers International Thailand.
Developers are now looking to find new ways to differentiate their project designs and unit concepts in order to attract buyers. These features include things like rooftop areas or large-scale project facilities. In addition to this, many developers are trying to target new groups of buyers.
“Developers also tried to sell to foreign buyers and investors before selling to Thai buyers. Many condo projects launched in the past few months sold at above-average prices for their locations. Although Thai demand remains limited and foreign buyers are seeking to invest only, developers should practice caution when selling to foreign buyers,” says Colliers International Thailand General Manager Ratchaphum Jongpakdee, to the Bangkok Post.
The condo market in Bangkok grew last year and experts say it will keep expanding in the future since there are several mass transit lines under construction. However, the market for new units will depend on government policy, economic overview, and land and construction costs.
Condo supply is predicted to increase by 55,000–60,000 units in the city and outer city areas this year, which is similar to the amount launched in 2017. The take-up rate in the Thai capital was 75 per cent last year, but there are currently more than 36,000 units waiting to be absorbed, according to Colliers. Nearly half of the unsold units for sale are in the THB50,001–100,000 per square meter price range.
Many Thai developers are looking to partner with international companies for joint venture projects this year in order to share costs. Developers from China, Japan, Hong Kong, and Singapore have all formed joint ventures with Thai companies in the past few years.
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