There are more signs that the Bangkok condo market is performing well. The number of condo units in Bangkok grew healthily with 623 units launched in the 1st quarter of this year, according to a new report from Edmund Tie & Company. The number of condo units launched this quarter was less than the 2,504 units released in the previous quarter.
Most of the units launched in the last quarter were in the Central Lumpini area of Bangkok. This was followed by the Sukhumvit area. According Edmund Tie & Company, the Central Lumpini neighbourhood is popular with developers and buyers because it contains green spaces, luxury views, and public transportation stations.
“There was a strong demand for upscale condominiums, especially in the Central Lumpini area with developers selling up to 100 per cent of their units shortly after unveiling the new condominium project,” says the report.
The average pre-sale rate of newly launched condo projects in the CBD area of Bangkok was 81 per cent in the 1st quarter of 2018. This was higher than the 67 per cent take-up recorded in the same period last year and the 70 per cent rate witnessed in the 4th quarter of last year. Condo values also improved when compared to the previous quarter.
“Following the encouraging sales in the 1st quarter of 2018, we expect the sales momentum of the condominium market to continue. There is keen interest from both domestic and international investors looking to participate in the CBD condominium market in Bangkok, and prices are set to climb further,” says the Edmund Tie & Company report.
Developers also believe the condo market outlook is positive with potential for more growth. At the moment, medium to large developers are seeking land in prime CBD locations since this is where demand is located at. Increasing land prices and a lack of plots will be the biggest challenges for companies moving forward.