Bangkok Overall MarketView Q3 2009

The third quarter of 2009 saw improvements in many sectors of the property industry when compared to the first half of 2009. Every sector continues to encounter challenges. The hotel and industrial sectors continue to feel the full force of the global economic situation.

The luxury condominium market saw a significant improvement in the number of sales and we continue to see that the majority of purchasers were Thais who bought not only to be end users but also as buy to rent investors. In Q3 we have seen more project launches in downtown locations. The majority of these new projects have been from larger well capitalized companies, with smaller developers facing problems when trying to secure finance.

In Q3 the total supply of downtown condominiums reached 61,522 units which was an increase of 1,015 units which is up 1.7% Q-o-Q and 14.1% Y-o-Y. The total supply of serviced apartments increased by 0.69% Q-o-Q and 6.84% Y-o-Y to 12,478 units in Q3 2009. Only two projects were opened in this quarter, the Sathorn Grace in the Silom/Sathorn district and the Rangratana in Central Lumpini.