With the average selling price of units in new condo projects haven risen sharply, investors are beginning to turn their attention to resale units which can be cheaper by 26 to 44 per cent depending on the project and location, according to research from professional property and facility management agency Plus Property.
Waterfront areas in Bangkok have the largest price differences with Ratchathewi-Phaya Thai, Sanam Pao-Mochit and Bangkok’s CBD also having noticeable average price differences between new and resale projects. This has given the resale market new life in Bangkok.
“The resale market is receiving greater interest, due to the resale market having significantly lower average selling prices than new projects in the same localities. The resale prices are between 26-44 per cent lower than those for newly launched projects. Compared with projects that launched sales within the past 5 years, resale units were priced 33 per cent lower, on average, than those at new projects,” says Anukul Ratpitaksanti, Managing Director of Plus Property in a press release.
It was added that interest for resale units comes from projects that have been well maintained and do not differ much from new projects in terms of amenities. There may be some difference in materials or layouts between older projects and new ones, however, the lower price and in-demand locations has meant resale units are now well-received.
With consumer confidence having recovered since the beginning of the year and consumer spending starting to pick up, there has been more demand for both new and resale units. The price of land in Bangkok has skyrocketed in the past few years resulting in new projects having much higher unit prices when they are launched. This has made the resale market an interesting alternative to investors.
“Considering return on investment, it has been found that high rise condominiums in Bangkok yield between 20 and 50 per cent return over an ownership period of 3-5 years. Some projects that have been subjected to more than 7 years of ownership might yield a return as high as 80-90 per cent,’” says Anukul.
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