The supply of condominium units in Bangkok grew in the 4th quarter, but uncertainty still surrounds the market moving forward, according to the latest edition of Edmund Tie & Company Real Estate Times. The report looked at Bangkok’s residential sector in the 4th quarter of last year and found developers were very cautious launching new projects.
Developer launched a total 1,276 new condominium units in the 4th quarter of last year which was an 1.5 per cent decrease from the previous quarter. The number of new launches decreased by a staggering 55.2 per cent year-on-year, research from Edmund Tie & Company shows.
The Silom-Sathorn area had the largest share of the newly launched supply within the CBD. More than half of the total supply in the CBD market was launched in this area followed by the Sukhumvit area. The average take-up rate of newly launched condominium projects in the CBD area was 73 per cent in the 4th quarter. This was higher than the 67 per cent take-up rate recorded in the 3rd quarter. It was noted that demand for high value units in CBD areas remained strong. A few developers were even able to sell 100 per cent of their projects prior to launching.
However, market sentiment remains weak and Bangkok’s condominium market slowed down in 2016 with a large number of condo launches either delayed or cancelled. Several of those launches were moved to 2017 with developers hopeful that the market outlook will improve despite an unstable economic situation.
Developers have started to launch new condominium projects in the CBD market during the 1st quarter, but the demand for new condominium units is expected to remain sluggish, as consumer confidence remains weak, notes the report. Condominium buyers and investors continue to delay their purchasing decisions forcing developers to review sales and marketing strategies as they look to increase sales.
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