Thailand’s Agency for Real Estate Affairs (AREA) said in its latest survey that there’s no sign of oversupply in the Bangkok condominium market, with its modest 21 per cent vacancy rate.
According to AREA president Dr. Sopon Pornchokchai, the company surveyed 103 condominiums completed within the past eight to 12 months in central Bangkok. Of the 40,027 units in total, 79 per cent, or 31,584, units were occupied. Of the occupied units, 73 per cent of 22,914 units were owner-occupants, while the rest ware tenants.
“The data we have doesn’t show any signs of oversupply at the moment. However, we have to keep an eye on unfinished units, which might affect a number of supply in the market,” he said. “If the new condo units keep coming up in a big amount, the oversupply could be really occurred in two years time.”
As reported in AREA’s research, Ramkhamhaeng was the location with the highest occupancy rate at 91 per cent, followed by Ratchada-Lad Phrao (86 per cent), Phahon Yothin-Phaya Thai (83 per cent), Sukhumvit Soi 1-69 (80 per cent) and Sukhumvit Soi 71-103 (79 per cent). The lowest occupancy was in the Rama III-Riverside area at 30 per cent.
The highest total yield was in Chaeng Watthana-Rarm Intra at 12.7%, followed by Phahon Yothin-Phaya Thai (12.6%), Sukhumvit 71-103 (12.2%), Ratchada-Lat Phrao (11.9%) and Ramkhamhaeng (11.7%). The lowest yield was in Rama III-Riverside at 8.6%.
The highest price appreciation was in Chaeng Watthana at 6.2% and the lowest in Rama III-Riverside at 1.8%. The highest rental return was in Phahon Yothin-Phaya Thai at 7.5% a year and the lowest in Pin Klao-Rama VIII at 5.4%.
Chaeng Watthana-Rarm Intra had the highest total yield with the lowest rental rate, averaging 191 baht per square metre per month.
Is There a Silver lining amid COVID-19?
Thinking of the future impact of this pandemic on office buildings, it may have already dawned on many of us that a majority of potential long-term trends and health measures will become permanent work-life features in the times to come.
The time is ripe to embrace Industry 4.0
Traditional brick-and-mortar retail has suffered tremendously, as countries have been implementing effective stay-at-home and social distancing policies to mitigate virus spread, while those worst hit have enacted strict draconian lockdowns
We have entered a time where, seemingly, interconnectedness is the new enemy, staying in is the new going out, and antisocial is the new social. COVID-19 has brought us on the cusp of growing accustomed to new norms and sounded a wake-up call in terms of how we live.
Covid-19 puts flexible space markets under strain
In the wake of operator defaults, landlords will be forced to re-evaluate the role of flexible space in their portfolios.
The global Covid-19 outbreak has had serious negative effects on commercial real estate, including flexible space. Of late, many operators have experienced the flexible nature of the business working against them, as many occupiers have opted to surrender desks and implement work-from-home plans.
Subscribe via Email
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,...
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...
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...
Will Thailand’s plan for quarantine-free tourism set a global trend?
According to the Tourism Authority of Thailand, the quarantine-exemption measures implemented in Phuket will be extended to five other key...
Thailand Approves Latest Economic Relief Package for Businesses
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will...
Southeast Asia remains a hot spot for plastic pollution
The use of plastics is deeply embedded in our daily lives, in everything from grocery bags and cutlery to water...