Developers will continue to launch new condos next year as they look to increase their sales, according to new research from Colliers International Thailand. This news comes despite low purchasing power and a difficulty of obtaining mortgages that most consumers are currently faced with.
It is estimated that 5,000 new condominium units worth THB15 billion combined will be launched in Bangkok during the 4th quarter of this year, with more already planned for 2018. However, developers may be willing to move some of those planned condo launches to this year.
“The actual amount may be lower or higher than 5,000 units as many developers will wait and see the market sentiment in November. If sentiment is good, they may bring forward the launch dates of the projects they plan for the 1st quarter next year,” says Surachet Kongcheep, Associate Director of Research at Colliers, to the Bangkok Post.
According to research from Colliers, the number of new condo supply launched in Bangkok came in at 42,790 units during the first 3 quarters of 2017. This total is almost double that of the same period last year when 22,864 condo units were launched. The number of condo units launched in the 3rd quarter of this year was the highest recorded total since the 4th quarter of 2010.
Many developers pushed forward condo launches to the 3rd quarter since the country is holding the Royal Cremation Ceremony for the late King Bhumibol Adulyadej in October.
At the moment, there are 36,948 condo units for sale in Bangkok, which accounts for 23% of total supply. While this figure would be purchased within 12 months should no new supply be launched, the large amount of new units expected to be launched between now and the end of 2018 means the market runs the risk of becoming oversupplied in the near future.
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