Bangkok Condo Market Reaches record prices in Q4 2014
According to CBRE Thailand latest Bangkok Overall MarketView Q4 2014, record-breaking prices of over THB 300,000 per sq.m. have been achieved in five downtown condominium projects in 2014.
This reinforced our belief that the downtown condominium sector is a low-volume high-value market with limited new supply. said CBRE.
The number of condominium units launched increased by 281% Q-o-Q in the downtown area and 13% Q-o-Q in the midtown/suburban area.Due to political turmoil in the first half of the year, the total number of condominiums launched throughout 2014 decreased by 37% in the downtown market and 29% in the midtown/suburban market, compared to 2013.
The hot spot for midtown/suburban condominium launches in 2014 was along the MRT’s Purple Line. Throughout the year, 7,500 units were launched in this area, accounting for 58% of newly launched units along under-construction mass transit lines.
This has pushed developers to search for new locations along other under-construction mass transit lines where there is less competition.
Still, the key issues in the midtown/suburban market are how many speculative condominium buyers will default if they cannot resell before completion and how many end-user buyers will be able to get mortgage loans with tightened banks’ criteria.
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