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Bangkok Condo – Record Downtown Prices

By on Mar 21, 2016 in Property News, Residential

For the Bangkok Condo market there has been a slowdown in both downtown and midtown/suburban areas but there has been record downtown prices in Q4 2015.

Despite the government stimulus package that was launched in early quarter 4 2015, the Bangkok condominium market continued to slowdown in quarter 4. This was due to a lack of general confidence among buyers across the economy. Research has shown there was a fall in sales, resales and launches in all areas.  The number of new launches in Q4 2015 of downtown condominiums went down 48% year on year.  This trend continued with the number of new launches of midtown/suburban condominium units which reduced by 32% year on year. Some existing developers postponed project launches to later in 2016 and increased focus on clearing built, but unsold condominiums.

The key factor continued to be how many buyers could transfer title on a Bangkok condominium and able to secure a mortgage. The Government Housing Bank agreed to commit to THB 10 billion in housing loans to low to middle income earners, but this amount is still very low compared to the total value of condominium units finished across the year.

Going forward in 2016, CBRE expects:

  • Overall a slow year for the condominium market.
  • The overall rate of new launches will be stable – slightly higher in the downtown area, slightly lower in some midtown and suburban area.
  • Prices for new condominiums in the best downtown locations will continue to rise because land prices are increasing.
  • As prices of newly launched condominiums are almost five times higher than some 20 year old condominium projects we expect this to have an upward pressure on the resale price of existing condominium projects. This would only apply to the best designed, maintained condominiums in the best location.

Source : CBRE Research. Market View Bangkok Residential – Q4 2015
For the full report and analysis click here.

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