There was a 3 per cent decline in new residential supply launched in Greater Bangkok during the 1st quarter of this year but the value of units skyrocketed upwards by 22.2 per cent in the same period as developers continue to focus on the high-end segment, reports local media.
New residential supply launched during January, February and March was 24,103 units from 85 projects, down from the 24,839 units from 113 projects launched in the 1st quarter of 2016. The value of the new supply launched increase by nearly THB 20 million, according to Real Estate Information Center.
“The decline in unit numbers with a rise in value show that unit prices of the new supply launched in the 1st quarter 2017 was higher than that in the same period last year,” says Vichai Viratkapan, Acting Director-General of the REIC, to the Bangkok Post.
Listed developers accounted for nearly 78 per cent of the newly launched supply in the 1st quarter and these companies dominate both the condo and low-rise housing segment. They have a 74.7 per cent market share in the condo segment and an 81.9 per cent market share in the low-rise housing segment, according to REIC data.
While the total number of units launched in both segments declined, unit value rose in the 1st quarter. Condo unit value increased by 31.1 per cent while low-rise housing rose in value by 11.2 per cent. This highlights the fact more developers in Thailand are focusing on the high-end segment where it is easier to find qualified buyers for units.
At the moment, there is a glut of completed, unsold condo units built by Thailand’s largest listed developers. A total of 43,000 units remained empty early this year and increase of 5,000 units when compared with the same time last year, research from Phatra Securities shows.
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