The residential market in 2018 should be positive in Bangkok with experts forecasting an improvement from last year because of stronger consumer confidence and a better performing economy, reports local media. Demand is estimated to grow 7.9 percent this year while supply will increase by 10.9 percent.
Condos will be a key driver for residential market this year with the Real Estate Information Center (REIC) estimating growth in this sector to be 6 per cent. Low-rise houses will see growth too, but only by 2 percent. The growth estimates are based on the number of land allocation permits for low-rise housing supply and the number of building construction licences for condos.
“The Greater Bangkok market outlook will be better than that of the provinces, as the capital’s key driver is condominiums. In the provinces, market growth is mainly in townhouse and single-house segment,” says Vichai Viratkapan, Acting Director-General of the REIC, to the Bangkok Post.
The total amount of residential supply in Thailand will rise by 3.4 percent this year with 111,300 of the 265,500 units being condos. More than half of the condo units, 79,900, will be located in Bangkok. In the provinces, most new supply will be low-rise houses with 79,900 units in this sector predicted.
According to REIC predictions, the absorption rate of residential units will improve by almost 1 percent in Thailand this year. The absorption rate of condos in Bangkok will increase from 43.2 percent to 44.5 percent. Meanwhile the low-rise houses absorption rate will rise to 36.3 per cent, an increase of almost 2 per cent.
In the provinces, the absorption rate this year will be down from last year for both condos and low-rise houses. The absorption rate of low-rise houses will drop from 28.1 per cent to 25.9 percent while condos will fall by 3 percent.
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