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Flood-hit market back to normal

By on May 18, 2012 in Property News

The Bangkok property market has recovered from the floods and even the worst-hit low-rise housing, retail and industrial estates in flooded areas have resumed activity, says property consultant CBRE Thailand.

All retail centres in flooded areas have reopened, there is new housing sales and the majority of factories have reopened.

The low- to mid-end low-rise market has rebounded with new sales in flooded areas, but the high-end market is slower to return.

“The desire of purchasers to own a house or townhouse close to future mass transit stations in the suburbs has continued as fears of a repeat flood are now alleviated,” said managing director Aliwassa Pathnadabutr.

Demand for single houses and townhouses will increase, driven by affordability, attractiveness of product and location. Prices of condominiums are rising due to higher land and construction costs.

For a fixed budget, the majority of families prefer townhouses in a good location several kilometres away from a mass transit station in the suburbs rather than a one-bedroom condominium in the city at a similar price, she said.

Demand for small condos will continue to come from single folks, couples and weekday residences for students attending urban schools or eager for a second home.

In the luxury condominium market, demand was driven by both people who plan to live at the property and investors.

Condo prices edged up in the mid- to entry-level markets, but to a lesser extent than the luxury market.

There continued to be new launches although the absorption rate was slower than two years ago when many projects tended to sell out at the launch.

She said developers would face challenges identifying new locations and selling out poorly performing projects before they were completed. Competition remains fierce with a tendency to quickly oversupply a particular location.

Demand in the office market continued to improve with an overall vacancy rate of 13.9%, down from 14.1% in the fourth quarter 2011.

Source : Bangkok Post 18 May 2012

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