Bangkok: Prices rise in lower-end condo segment
The condominium units per square metre in the lower-end segment recorded the highest annual price increase in the third quarter, rising 13.7% because of limited launches in the segment.
"Without new supply in the market, existing projects in this segment raised sales prices of the remaining units or new phases," said a survey team at the Real Estate Information Center (REIC).
No new condo supply was launched in the lower-end market -- units priced below 50,000 baht per sq m -- from the fourth quarter of last year to now, according to a survey by property consultant Colliers International Thailand.
"Most developers launched condo units in the middle- to upper-end segments, with a focus on 60,000-140,000 baht per sq m," said Surachet Kongcheep, associate director at Colliers' research department.
REIC yesterday reported a change in condo prices for all segments in the third quarter, with the lower-end market rising by 11.7-13.7% year-on-year. The price of lower-end condos increased 4.9-6.9% from the second quarter.
The second-highest increase was for luxury condominiums, with unit prices higher than 200,000 baht per sq m, which rose 9.7-11.7%, followed by the high-end segment, with units priced between 120,001-200,000 baht per sq m, an increase of 3.1-5.1%.
But the price of condominiums in the high-end segment in the third quarter was down 0.4-2.4% quarter-on-quarter as selling prices hit a ceiling.
The price of condominiums in the upper middle-end segment -- units priced 80,000-120,000 baht per sq m -- slightly rose 0.1-2% year-on-year, albeit down 4.1-6.1% from the second quarter.
The middle-end segment -- units priced 50,000-80,000 baht per sq m -- saw an annual price drop of 0.7-0.9% and a 0.6-0.8% decline quarter-on-quarter.
REIC also outlined the top five locations with the highest condo price increases, led by Huai Khwang-Chatuchak-Din Daeng, with a rise of 14.4-16.4%.
That area was followed by lower Sukhumvit in Klong Toey Nua and Klong Tan Nua subdistricts of Watthana district, and Klong Toey and Klong Tan subdistricts of Klong Toey district, rising 13.5-15.5%.
The location with the third-highest increase in condo prices was Bang Sue-Dusit-Phra Nakhon-Pomprap Sattruphai-Samphanthawong (10.2-12.2%), followed by middle Sukhumvit (9.2-12.2%) and Samut Prakan (9.1-11.1%).
REIC reported the price index for new condos in Bangkok, Nonthaburi and Samut Prakan in the third quarter rose 5.9% from the same period last year and 1.6% quarter-on-quarter.
In Bangkok, the index rose 5.9% year-on-year, while in Nonthaburi and Samut Prakan it increased 4.6%.
The price index of single houses and townhouses in Bangkok, Nonthaburi, Pathum Thani and Samut Prakan in the third quarter only rose 2% year-on-year.