Search Switch

Bangkok's condo market steady in Q2

- +

Related Stories

The Bangkok condominium market remained healthy during the second quarter of 2018 in terms of demand and prices, says Knight Frank Thailand Research.

While new supply declined by almost half from the previous quarter, this reflected the fact that most developers are planning to launch new projects during the second half of the year. A total of 8,894 new units entered the market, a decrease of 47% from the first quarter.

It is clear that industry participants are increasingly turning their attention to development of areas around the central business district (CBD) and in the suburbs. This was reflected in the number of new units launched in these two areas, which increased by 6.5% and 2.2%, respectively, compared with the first quarter.

The most popular locations were along the electric train extension lines, especially the Light Green, Blue and Yellow lines. New project launches took place around the same time in the Lat Phrao, Phahon Yothin, Phetkasem and Charan Sanitwong areas.

Meanwhile, the CBD in the Sukhumvit area remained the most popular location for developers during the second quarter, with two new luxury projects in Asok and Ekamai, totalling 363 units. There were no official launches of new projects in other CBD areas in the quarter.

Data compiled by Knight Frank found that the average sales rate of newly launched units was about 60%. Condos that enjoyed brisk sales were located in the CBD and the suburbs, with take-up of 70% and 50% of total units, respectively. Areas that were popular with buyers included Sathon-Tha Phra, Rama IX-Ratchada, and Phahon Yothin-Vibhavadi.

Overall, the asking price per square metre for new units during the second quarter of 2018 was 147,800 baht, up 5% from the previous quarter. The increase was driven by new developments in the CBD where average prices were 248,000 baht per sq m, reflecting a 16% increase from the previous quarter.

Market conditions warrant close watching in the second half of the year, with many developers scheduled to launch projects. There is a high probability that the new supply in the second half will be at least 22,000 units. If that is the case, total supply in 2018 will reach nearly 50,000 units.

Prices in the second half could break a record after six quarters, as more than 40% of the new supply will be in the CBD.


Sathaporn readies four new projects

Sathaporn readies four new projects

Sathaporn Estate Co, a new company under developer Chalermnakhon Co, plans to launch four residential projects worth 6.8 billion baht in the next 18 months, with a focus on the upper-en...

Singha Estate keen on Fiji, Maldives addition

Singha Estate keen on Fiji, Maldives addition

SET-listed property firm Singha Estate Plc (S) wants to expand its hotel rooms and develop super-luxury villas for sale in Fiji after taking over two resorts there from American hotel c...

0 people commented about the above

Readers are urged not to submit comments that may cause legal dispute including slanderous, vulgar or violent language, incorrectly spelt names, discuss moderation action, quotes with no source or anything deemed critical of the monarchy. More information in our terms of use.

Please use our forum for more candid, lengthy, conversational and open discussion between one another.