There is some concern that condo oversupply is building up in Bangkok and a handful of other provinces in Thailand. Research from Colliers International shows that 13,600 new condo units were launched in the 2nd quarter with 45,000 new units expected in total this year.
“The average take-up rate in Bangkok during the 2nd quarter of 2017 was not very high but some developers were able to sell out new projects. Meanwhile, the slowdown in the condo market in the provinces with a high tourist presence has carried over from last year. Although some developers have been trying to boost the attractiveness of their projects with major marketing campaigns, in many cases it has taken a year or more after construction completion to sell all units,” says Surachet Kongcheep, Associate Director for Research at Colliers International Thailand, to the Bangkok Post.
The Pattaya Condo Market
The Pattaya condo market is down with new project launches having decreased when compared to the past few years. Demand growth has been minimal and an estimated 10,000 condo units remain unsold in the city. Chinese buyers have recently entered the Pattaya market, but this has not been enough to reduce the glut.
Other markets coping with a reversal of fortunes include Cha-am, Hua Hin and Khao Yai. All 3 tourist areas had rapid residential development with numerous condo launches taking place, but many of these units now sit empty waiting for buyers.
“Cha-am and Hua Hin are considered up-and-coming locations in the condominium market, with projects from well-known developers attracting high interest from buyers in recent years. But the building boom of the last 5 years or so has resulted in a lot of units still looking for buyers. In Khao Yai, growth has slowed in the condominium market as projects launched in the past 2 to 3 years still have units available,” says Surachet.
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