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Prices Rise in Bangkok Condominium Sector, says report

By on Jun 23, 2010 in Residential

Source: Property Report dated June 23, 2010 by Andrew Batt

Despite the ongoing political instability prices for condominiums in Bangkok have not dropped – and in some cases they’ve been rising as demand from local buyers continues to drive the sector.

Research from CB Richard Ellis (Thailand) showed the majority of condominium sales during the first quarter of 2010 came from Thai nationals – not only as end users but also as buy-to-rent investors.

The Market Focus report noted that property developers are almost all focusing on new launches of one bedroom units. The amount of unsold developer inventory in recently completed projects and projects to be completed in 2010, together with resales prior to completion, will slow the launch of new real estate projects for 2- and 3-bedroom units downtown.

“Developers are going to focus on smaller units to keep the total price down, but there appears to be having been a move away from studios to one-bedroom units,” the report concluded. “There was a significant increase in numbers of new projects launched in peripheral areas, and in many cases there were strong sales.”

The report found the average achieved resale price of units in completed upscale and above units increased by 18.4 per cent year-on-year. The majority of new supply in Q1 consisted of one-bedroom units, followed by two-bedroom types.

Other key findings of the report were:

  • During Q1 2010, the total supply of downtown Bangkok condominiums reached 67,176 units (up 3.2 per cent quarter-on-quarter and 15.8 per cent year-on-year) an increase of 2,109 units (six projects).
  • During Q1 2010, the average asking price for an off-plan condominium unit (high-end and above) in downtown Bangkok was THB156,460 per sqm (US$4,835), an increase of 19.2 per cent quarter-on-quarter or 3 per cent year-on-year.
  • A total of 1,759 units in four projects in the downtown area were launched during Q1 2010, with the majority of new units targeting the high-end market.
  • The average achieved re-sale price of units in completed upscale and above buildings increased by 18.4 per cent year-on-year to THB121,805 (US$3,760) per sqm. Central Lumpini was the area with the highest average achieved resales price level (THB143,338 per sqm).

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