The Bangkok Condominium Market Q2 2018
Bangkok’s condominium market continues to be steady during the second quarter of 2018 based on demand and prices, says Knight Frank Thailand Research.
Supply has declined by just about half from the first quarter of the year, however most developers have planned to move forward with new projects during the second half of 2018. There were a total of 8,894 new units that entered the market during the second quarter, down 47% from the previous quarter.
Industry leaders are continuing to increase their attention to developing around the central business district (CBD) and in their suburbs. This was shown by the number of new units launched in these areas, with an increase of 6.5% and 2.2%, respectively, compared to the first quarter.
Popular locations are along the extensions being built for the electric train, in particular the Light Green, Blue and Yellow lines. At the same time new projects were launched in the Lat Phrao, Phahon Yothin, Phetkasem and Charan Sanitwong areas.
The most popular location for developers during the second quarter was the CBD in the Sukhumvit area with two new luxury projects in Ekamai and Asok totally 363 units. Currently there are no new projects officially launched in other CBD areas in the quarter.
The average sales rate of newly launched units was about 60% accordingly to data compiled by Knight Frank. Brisk sales were located in the CBD and the suburbs for condos, with take-up of 70% and 50% of total units, respectively. Popular areas with buyers included Sathon-Tha Phra, Rama IX-Ratchada, and Phahon Yothin-Vibhavadi.
Asking price per square meter during the second quarter of 2018 was 147,800 baht for new units. This is up 5% from the previous quarter. Price increases was motivated by new development in the CBD where the average price of 248,000 baht per sqm reflects an increase of 16% from last quarter.
With developers scheduled to launch many new projects in the second half of the year, market conditions should be watched closely. There is a high expectation that at least 22,000 units will be available in the second half of the year. If this happens the total 2018 supply with reach nearly 50,000 units.
Second half prices could break a record after six quarters, because more the 40% of the new supply will be in the CBD.