Bangkok condo market looking ‘lively’

Property & Real Estate

Bangkok condo market looking ‘lively’

The condominium market in Bangkok returned to a

‘lively state’ in Q3 2018, according to Knight Frank

Thailand Managing Director Phanom Kanjanathiemthao, with new project launches releasing around 23,000 units onto the market. He said that this reflected ‘a good level of developers’ confidence in the direction of the market’.

Studies conducted by the company’s real estate research team found that there was a 22 percent increase in the supply of units for sale in Bangkok’s Central Business District compared to Q2 2018.

At the same time, supply in the areas surrounding the CBD and the suburbs increased by 15 percent and seven percent respectively. Areas of interest to developers included Thonglor-Ekamai, Sathorn-Rama IV, Phayathai, Ratchada-Huay Kwang, Thonburi, Chatuchak and Bangna.

Average take up rate for newly launched units in Q3 registered at around 55 percent, a decrease of five percent q-o-q that was due to the surge in new supply entering the market.

Units that sold well were located in the zone surrounding the CBD and in the suburbs, with an average take up rate of 60 percent in both areas. The areas proving to be popular with buyers included mid-Sukhumvit (sois 42-63), Rama IX-Ratchada and Thonburi. The average asking price of newly launched units in 3Q 2018 was THB150,394 per square metre – an increase of about two percent from the previous quarter.

This was bolstered by the prices of new units in the CBD and the suburbs which stood at THB 254,000 and THB 84,000 baht per square metre – increases of three percent and five percent respectively over Q2.

For Pattaya, Phanom Kanjanathiemthao said that the resort’s condominium market was once again showing positive signals after a period of stagnation that extended over many quarters.

In the first nine months of 2018 there were some 4,800 new units launched – an increase of 83 percent compared

Phanom Kanjanathiemthao

to the same period in 2017 – with over 3,100 units of this new supply located in Jomtien.

The average take up rate on newly launched units in Q1-3 2018 was around 62 percent. Areas most popular with Thai and foreign buyers included Central Pattaya, South Pattaya and Na Jomtien. The average asking price for new units stood at THB 118,510 per square metre, rising to around THB 130,000 per square metre for ‘luxury’ units.

28 The Link Issue 4/2018