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.
Bangkok falls 19 places to 49th most expensive location worldwide
Locations reliant on international tourism have seen their rental markets hit especially hard during the pandemic, resulting in some major drops in the rankings. Bangkok has fallen 19 places to 49th, while Hanoi saw a similar drop of 12 places to 81st.
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