The prices of condominiums close to mass transit have risen significantly, the prices of condos close to the mass-transit system have risen by an average 10-20 per cent a year. Some locations on Sukhumvit Road that had prices averaging Bt78,065 per square metre in 2006 are now priced at Bt121,916 per square metre, up nearly 100 per cent.While a number of property developers have launched new residential projects in this location, demand has continued to grow because of a lifestyle change from big families to small families.
Most younger people starting to work need to stay by themselves, and as a result select condominiums, either new or on the resale market. Meanwhile, demand for condominiums in areas such as Srinakarin Road, Ngamwongwan Road and Chaeng Wattana Road has also seen high growth because those locations have communities that serve their lifestyle.
Asia’s property markets are set for a continuous drip feed of tighter regulations in coming months as authorities try to take the froth out of surging home prices without triggering a crash.
Last week Hong Kong announced its fifth set of measures this year as it struggles to curb speculation in its property markets. China, Singapore, Taiwan, Thailand and Malaysia have also unveiled more stringent regulations in recent months.
Although the current outlook for Thailand property has taken a knock and the current political situation needs to be followed closely by potential Thailand property investors, the country’s property market should not be overlooked.
Being a developing country, the cost of property in Thailand is much lower than in the more developed European markets. But, on the other hand, prices for Thai property, in general, are rising at a much faster rate.
Bangkok’s condominium market is expected to slow down next year, but the number of newly launched units could still reach 40,000-50,000 without causing an oversupply.
This estimated range matches the number of newly launched units from July to November of this year, 48,973, which was higher than for all of 2007, the peak year for the condominium sector.
Phanom Kanjanathiemthao, managing director of the property consultant Knight Frank Thailand, said about 60% of those newly launched units have been sold, demonstrating strong demand for city condos.