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Thais Are Now the Main Buyers of Condominium Units

By on Sep 20, 2010 in Residential

Bangkok Residential Sales MarketView Q2 2010.

The civil unrest in April and May slowed the launch of new projects but these resumed quickly. Prices have not fallen and there were few if any panic sales.

The market has changed over the last two years both in terms of buyers and product. Thais are now the main buyers of condominium units rather than foreigners. The trend has been to build one bedroom units both in the downtown market and midtown locations.

Effectively we have two markets, a downtown larger unit market and the one bedroom market mainly in midtown locations. The performance of these two markets has been very different.

The market for larger units priced above 10 million baht has been slow with few new launches. There has been a buildup of unsold inventory in some recently completed projects but developers are making inroads into clearing this stock with incentives such as ”guaranteed yields” and furniture packages inclusive in the price.

Developers have not resorted to across the board price discounts for the remaining stock. There also appear to have been few defaults by buyers who have been unable to resell prior to transfer of title.

There are likely to be few new launches of larger units priced about 10 million baht for the rest of this year until the unsold inventory has been cleared.  We see little possibility of prices falling and in certain developments that are seen as being the best in particular location prices could increase.

The average achieved re-sale price of units in completed upscale and above units increased by 11% Y-o-Y.

In Q2 the average price for an off plan freehold condominium unit (high end and above) in downtown Bangkok was 156,813 an increase of 0.2% Q-o-Q and 8.6% Y-o-Y.

In Q2 2010, the overall occupancy rate increased to 74.1 % in this quarter.

The number of newly launched units in peripheral areas was 4,801 units.

This is an extract from Bangkok Residential Sales MarketView Q2 2010, click to download the full report.

Toby has been living in Bangkok for a number of years and has a strong research background. With his years in Thailand Toby brings a wide range of property knowledge to his research writing

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