Connect with us

Real Estate

Study shows Bangkok condominium dual market

According to CBRE latest market. update, the Bangkok condominium market, is split between the downtown market and the midtown/suburban market with different market dynamics, sizes and quality emerge.

Daniel Lorenzzo

Published

on

Urbano Absolute Condo

According to CBRE latest market. update, the Bangkok condominium market, is split between the downtown market and the midtown/suburban market with different market dynamics, sizes and quality emerge.

Loading...

The downtown market consists of projects at higher prices while the midtown/suburban market is a mainly a mass market made up of one bedroom units. New supply has continued to increase with approximately 17,000 units completed in the downtown and midtown markets this quarter.

Study shows Bangkok condominium dual market

Study shows Bangkok condominium dual market

Total midtown and downtown supply is now approximately 350,000 units where the majority of supply is in the midtown area and the market for downtown condominiums is now a low volume high value market.

The number of new launches in the downtown area has decreased by approximately 40% on last quarter and over 90% of the units in the new launches in the downtown area are priced above THB 150,000 per square metre.

The amount of unsold inventory in the downtown continues to fall significantly and prices are rising for the best quality downtown completed projects and for the best located new downtown launches. Developers who want to achieve high prices have to convince buyers that their projects really do offer a higher quality and only the best located, best designed projects with high specifications will succeed.

There is a renewed interest from foreign investors accounting for just over 20% of demand for downtown Bangkok condominiums with an increasing proportion of Asian buyers. We have concerns about the midtown and suburban condominium market.

There will be a record level of midtown and suburban condominium completions this year

 

The Bank of Thailand has warned banks to be more cautious in their lending to this sector but as yet has not lowered the loan to value requirements and the government has not imposed additional transaction taxes like Hongkong and Singapore. There will be a record level of midtown and suburban condominium completions this year.

Developers will be competing to clear unsold inventory with speculators who wish to resell before completion and the need to make final payment, in many cases 80-90% of the total price. We expect that this will result in a slowdown in new launches and an exit of speculators from the market.

A market dominated by end users will mean that new projects will have to be both attractive and affordable. This is likely to result in a mixed performance for new mid market/suburban condominium launches and a big push by developers to clear unsold inventory in both completed and under construction developments.

Download the complete study here : http://www.cbre.co.th/media/research_file/912/q2_13_bangkok_overall_market_view.pdf

Comments

Property

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.

Daniel Lorenzzo

Published

on

A direct result of COVID-19 containment measures is that organisations are taking a real-time look at the effects of prolonged off-site work and its relation to productivity.

Loading...
(more…)

Continue Reading

Property

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

Daniel Lorenzzo

Published

on

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.

Loading...
(more…)

Continue Reading

Corporate

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.

Daniel Lorenzzo

Published

on

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.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

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

Join 13,965 other subscribers

Latest

Trending