By Andrew Batt:
More than 47,000 condominium units were launched in Bangkok last year – a more than 50 percent increase on the total for 2011, according to new research from Colliers International Thailand.
Surachet Kongcheep, Senior Manager of Colliers International Thailand’s research department, said the total number of units launched in 2012 was 47,340 units, some 54 percent higher than the previous year. Current supply for the whole of Bangkok starts at 354,900 units.
“The Northern Fringe Area was most popular with developers in the urban area in 2012, as evidenced by the fact that approximately 15 percent of the total number of units launched in 2012 was located in the Northern Fringe Area,” said Surachet.
“The City Area came in second, with nearly 10%, or around 5,000 units. Most newly launched projects in the City Area were not located on or close to the main roads in the area. Developers are more focused on plots of land on the sois and side streets, as their land prices are considerably cheaper.”
The biggest customer group for the condominium market is the middle to low-end market, Colliers mnoted, where prices are under THB3 million per units.
More than 60 percent of units which launched in 2012 were within one kilometre of existing mass transit stations, while high-end and luxury projects are located less than 0.5 kilometres from a BTS or MRT station.
Many factors affected rising condominium prices in 2012. Surachet said: “The average selling price of newly launched units in 2012 was approximately 12 percent higher than in 2011, with take-up rates being around 69 percent.”
“The reputation of developers, location, reasonable price, project concept, unit design and EIA approval are the main factors affecting the decisions of customers, especially EIA approval, the lack of which has prevented some projects from starting their construction,” Surachet said.
Looking forward, the new Bangkok City Plan and labour shortages are the major factors affecting condominium development in 2013.
Surachet said: “The City Plan is still the primary concern for developers. The lack of a clear plan is affecting the land market in Bangkok as developers are reluctant to buy land in Bangkok, especially along the smaller sois in the city. They are waiting for official news which is scheduled to be released in 2013.”
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
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