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The Majority of Condominium Sales Have Come from Thai Nationals

By on Jun 21, 2010 in Research, Residential

Bangkok Residential Sales MarketView Q1 2010

The majority of condominium sales have come from Thai nationals not just looking to be end users but also to be buy to rent investors. The growing numbers of Thai buyers reflects the improvement in local consumer confidence.

The biggest surprise for many people this quarter is that generally prices did not fall in fact it was in many cases the opposite where prices in some recently completed projects actually rose. 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 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.

There was a significant increase in numbers of new projects launched in peripheral areas and in many cases there were strong sales.

The average achieved re-sale price of units in completed upscale and above units increased by 18.4% Y-O-Y.

The majority of new supply in Q1 consisted of 1 bedroom units followed by two bedroom types.

In Q1 2010, the overall occupancy rate decreased by 0.2% Q-o-Q to 74 % in this quarter.

The number of newly launched units in peripheral areas was 4,814 units.

Outlook

In this quarter, the focus of developers was on small units both in the central area and peripheral areas. Three developers – LPN, Sansiri and Noble reported that they had sold all the units at launch. Sales of larger units by developers in both projects that had been completed and were still under construction were slow. Land prices continue to increase especially in the Central Business District. We will see in the second and third quarters if developers can raise prices and still sell in high volumes.

This is an extract from Bangkok Residential Sales MarketView Q1 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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