JLL revealed that they are receiving a high number of condominium inquiries from interested buyers even if sales volumes are in Bangkok are down. The property consultancy believes that this indicates demand for condominiums is strong, but noted that buyers are now taking longer to make a decision before purchasing a unit.
There are many reasons for this with potential buyers possibly being overwhelmed by the sheer volume of units available on the market at the moment. This means those looking to buy are looking longer and harder at units to determine if it fits their needs and offers true value. As a result, they take a longer time to make a decision. However, JLL believes that most of these home seekers do buy a unit even if it is now taking much longer.
Another hang up potential buyers are dealing with according to JLL is a lack of discounts or deals available. Those looking for a new condo unit understand that there is a significant increase in new supply while sales remain tepid and expect prices to reflect that fact. However, condominium prices at new projects in prime Bangkok locations, where interest is the highest, are increasing.
In fact, JLL pointed out that most inquiries it receives comes from buyers looking for a high-end unit in the CBD with a price below THB200,000 per sqm. The reality is that most asking prices in this area are much higher than this, causing buyers to expand their search.
And while developers are not reducing prices, they have been offering incentives to help boosts sales. These can include free furniture, transfer fee waivers and exemption of property management fees for a few years. While these are enticing to some buyers, others would rather have a price discount and appear to be willing to wait on purchasing a condo unit until they find a price they like.
