Connect with us

Thai Property market : condo launches to slow to 61,000 – 64,000 units in 2019

More than 77 percent of respondents, who are interested in buying a condo between 2019-2020, said they want to purchase a condo as their residence

Kasikorn Research Center

Published

on

Construction Workers in Bangkok

Condominium developers are expected to face greater challenge in 2019 due to increasing economic uncertainty as well as specific factors affecting condominium market.

Loading...

For example, the demand for condo has been somewhat absorbed and there are a number of remaining unsold units covering a wide range of prices amid the imbalance between purchasing power and selling price.

Moreover, new regulatory and legal requirements have become effective. These factors have prompted business operators to attach greater importance on their business plan adjustments.             

The findings show that more than 77 percent of respondents, who are interested in buying a condo between 2019-2020, said they want to purchase a condo as their residence.

Real demand for condominiums still strong

The real demand for condominiums still exists, as reflected by a survey to determine the demand for residential properties in Bangkok and suburbs by KResearch.

As property developers are now stepping up their marketing promotions to attract homebuyers, this may present a golden opportunity for consumers who are planning to buy a condo. They now have a variety of choices consisting of both old and new projects, covering a wide range of prices, to choose from.  

At any rate, since the purchase of residential property is considered a long-term financial liability, the buyers must take into account their debt service ability in the long run together with additional expenses that may incur and affect their ability to pay installments.                  

Investors more cautious

Investors planning to purchase a condo for renting out may have to be more cautious due to various factors.

For example, the initial cost of investment becomes more expensive because of the Bank of Thailand’s loan-to-value (LTV) policy to govern the housing loans. Additionally, rental income from apartment may not generate high profit as seen in the past due to stronger competition. Tenants have more choices and greater bargaining power.

Also, capital gain is high only in certain segment and customers may have to spend a longer period of time before they can sell the property. This can cause an opportunity cost if the investment return falls short of expectation.            

 Due to the aforesaid situation, KResearch views that the total condo units for sales in 2019 will be around 61,000-64,000, contracting around 12-16 percent from 2018 and representing the first decline since 2017. 

Condo market in 2019: Developers are cautious with the volume of project launches expected to slow to 61,000 – 64,000 units.

Comments

Economics

Thai fruit exports to FTA markets up 107 percent

China, Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, Australia and Chile are top importers of Thai fruits, especially fresh durian, mangosteen, longan and mango. Thai exporters are able to benefit from FTA privileges.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Thailand’s fruit exports continue to increase, despite the sluggish global economy caused by the COVID-19 pandemic, with key trade partners being countries that have free trade agreements (FTAs) with the kingdom.

Loading...
(more…)

Continue Reading

Myanmar

Digital Revolution and Repression in Myanmar and Thailand

Activists have also proactively published social media content in multiple languages using the hashtags #WhatsHappeningInMyanmar and #WhatsHappeningInThailand to boost coverage of events on the ground.

Avatar

Published

on

By Karen Lee

Loading...

Following the February 1 coup, Myanmar’s netizens became the latest to join the #MilkTeaAlliance, an online collective of pro-democracy youth across Asia.

(more…)

Continue Reading

Currencies

3 Reasons to Be Optimistic About the Baht Right Now

Probably one of the most important factors for the rise of the Baht is the continued weakness of the US dollar, which most experts agree is going to continue declining throughout the rest of the year.

Pr News

Published

on

The Thai Baht, our beleaguered currency, has had something of a difficult few years. Successful debt and inflation crises have eroded the value of the Baht numerous times, not least the events of 2015-16, which saw the Baht plunge to some of the lowest levels against the Dollar in history.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,973 other subscribers

Latest

Trending