By Andrew Batt:
The number of real estate projects – particularly condominiums – in Bangkok is the highest in the ASEAN countries according to the Thai Appraisal Foundation.
During the first nine months of this year, new condominiums in Bangkok sprouted up at the rate of 42 percent year-on-year. According to the Real Estate Information Centre, skyrocketing condominium construction has been caused by many factors, including changing weather, flood-prone locations, more strict related law, urban lifestyles, and elevated and underground electric mass transit extension.
Government Housing Bank Real Estate Information Center Director Samma Kitsin highlighted four locations with growing numbers of condominiums – Huay Kwang-Chatuchak, the Bangna end of Sukhumvit Road in Bangkok, the tourist and industry-concentrated province of Chonburi and the seaside resort zones of Hua Hin and Cha-am.
More condominiums are on the way as developers and investors see a rising future housing demand, particularly after the formation of the ASEAN Economic Community in 2015.
“The condominium market is highly competitive. Projects not achieving target sales quotas set by the financial institution will not be given financial credit to continue, so construction will be put on hold,” Samma said.
Thai Appraisal Foundation President Sophon Pornchokchai revealed that condominium sales accounting for 70 percent of housing market shares. The ratio of home buyers and speculators is 2:1 now. Real estate prices slightly increase by five percent annually and there is no sign of a real estate bubble, he added.
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