Average prices for new condominium projects in Bangkok rose a staggering 21 percent quarter-on-quarter according to the latest research published by Colliers International Thailand. In its Bangkok Condominium Market Report covering the first half of 2013, Colliers revealed that the number of new launches dropped by 22 percent compared to the previous quarter, but the number for the entire first six months was 12 percent higher compared to the same period in 2012. Low- and middle-income buyers with budgets under THB3 million remained the highest proportion of property buyers in the Thai capital, according to the report. The average take-up rate for new condominium projects in Bangkok during the second quarter was 74 percent – the highest recorded for a number of quarters due to strong sales at projects being sold by reputable, listed developers and located close to the city’s mass transit network. Average selling prices in the city area were recorded at THB166,000 per sqm – the highest for more than two years and 2.7 percent up on the previous three-month period. Prices in the city are more than 100 percent higher than average prices for the entire Bangkok metropolitan region. The research also noted a price drop once a project is more than 200 metres from one of the city’s mass transit stations, and declines substantially once that distance is more than 1,000 metres. Housing loans offered by financial institutions have also declined as banks reigned in their lending over concerns of rising household debt and the country’s first car policy - which has impacted some low- and middle-income buyers. “Thailand is located in the centre of Asia Pacific and has great potential for AEC in 2015,” the report noted. “Many foreign developers are entering Thailand by themselves or looking for joint ventures with Thai developers to start their first projects in the country, especially in Bangkok. In addition, many foreigners are back in the Bangkok condominium market again and most of them are looking for luxury condominium units in the City area around the BTS stations; foreign buyers will continue to increase in number in the future." Colliers added that because of the high number of new supply, certain projects will do better than others. Those that have the best prospects are those from well-known and reputable developers. Other developers can still do well if they focus on well-researched projects in strong locations, well-designed and targeted clearly at a clear market segment. “New opportunities are also coming outside Bangkok where there is now more disposable income and the market historically has been poorly served.”
Posted on: Wed, 28 Aug 2013 06:18:33 +0000
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