Bangkok will see a record number of new condominium unit launches this year, although next year is predicted to see dwindling supply on new developments.
The Real Estate Information Center (REIC) noted that between 70,000 and 75,000 units will be launched in 2013 – a record for the industry. It also predicted a slowing of new launches in 2014 as developers reduce their activities against the background high competition and several government agencies warning of an oversupply risk.
Sales of condominiums in the Thai capital grew by 151.8 percent year-on-year during the first quarter of 2013. Suburban areas contributed heavily to the recent growth of Bangkok’s condominium market, accounting for 70 percent of new launches or 22,465 units.
The popularity of suburban condominiums is due to the expansion of the mass transit system from the central business districts to the suburbs, and the safety from flooding which damaged many areas of Bangkok and other provinces in late 2011.
Prices of suburban condominiums have shown a 48 percent increase in the last four years, according to Sena Development, a listed property developer. Average prices now stand at THB100,000 per sqm in these areas.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote
this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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