The number of new condominium launches in Bangkok during Q2 2013 dropped by 22 percent from the Q1, however the total number of units launched during the entire first six months of the year was 12 percent up on the same period last year.
In its latest Bangkok Condominium Report, Colliers International noted there were approximately 14,440 new condominium units completed and registered with the Department of Land during the first half of 2013. Many of these were condominium projects that were postponed from 2012, and had delayed their completion dates due to labour shortages.
The average take-up rate for condominium projects in Bangkok for Q2 2013 was approximately 74 percent, the highest witnessed for a number of quarters. Some condominium projects sold out within a few days of launching, especially condominium projects from Stock Exchange of Thailand-listed developers.
The average selling price for newly launched units in the first half of 2013 increased by around 7 percent compared to the average price of condominiums that were launched in 2012. Colliers attributed the rise to increases in construction costs.
Low- to middle-income groups are still the main buyers, the agency noted, with the best-selling units in the ‘affordable; price range of not more than THB3 million.
The agency added that certain projects will do better than others, with developments from well-known and reputable developers seeing higher take-up rates.
Despite warnings from some government agencies that there is a risk of oversupply, developers continued to have confidence in the market, and are expected to launch new projects throughout the second half of the year.
Colliers added that Thailand is located in the centre of Asia Pacific and has great potential for AEC in 2015. Many foreign developers are entering Thailand by themselves or looking for joint ventures with Thai developers, especially in Bangkok. Additionally many foreigner buyers have returned to the Bangkok condominium market, with most of them looking for luxury condominium units in the city area and around the BTS stations.
The company predicted that the number of foreign property buyers and investors in Thailand will continue to increase.
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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