New research from the Agency for Real Estate Affairs (AREA) has revealed that 89 residential projects are currently on hold within the Greater Bangkok area.
A total of 18,404 units worth more than THB45 billion are currently in limbo although the firm declined to reveal precise details of affected projects or developers.
Most of the affected projects have suffered from commercial financing problems or a lack of sales, according to AREA. Some 47 percent of affected units are condominiums, with detached housing (25 percent) and townhouses 13 percent) also impacted.
AREA noted that 21 of the suspended or cancelled projects failed to gain project financing, while another 9 did not pass an environmental impact assessment. Eight projects need to adjust their designs while seven more were considering price increases.
The number of halted projects now is lower than the 108 developments which were in the same position during the same time frame last year.
Dr Sopon Pornchokcha, President of AREA, said: "This is a normal problem for property firms, that is, launching projects that may be suspended or cancelled when problems are faced, but most of them also return down payments to customers when the projects cannot be built in accordance with the plan.”
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
Recent stories you may have missed:
Thailand property popularity surges
Eight Phuket condos up for auction
Myanmar buyers look to London
Revealed: Thailand’s priciest land