The retail, office and central business district CBD condominium sector was strong in the fourth quarter last year and will continue to be so in 2014 due to limited supply, according to property consultant DTZ Debenham Tie Leung Thailand Co.
Over 3,000 new condo units were launched in the fourth quarter, bringing the overall number of new launches to slightly over 10,000 units in 2013 compared to 7,300 units in 2012, a record year for the CBD.However, a lack of prime development sites will continue to drive demand for top-quality residential products in desirable locations.
The Sukhumvit zone recorded the largest number of new launches with 1,577 units, representing more than half the total in the fourth quarter.While demand for small and compact condos has been consistently positive over the last two years due to affordable pricing and payment schemes, there is also a burgeoning appetite for larger and more spacious units.
Prime projects, which command exceptional locations and quality, drove average launch prices of super luxury projects up from 193,000 baht per square metre in the first quarter to 225,000 baht in the fourth quarter.The capital value for resale CBD condominium units rose marginally by 0.3% quarter on quarter and 2.6% year on year to reach an average of 87,400 baht per sq m.
Within the CBD, resale activity in Sukhumvit was particularly high as local homebuyers sought value-for-money purchase opportunities from older secondary properties in good locations.CBD condominium projects launched in the fourth quarter recorded an average take-up rate of 60%.Despite dimmer economic performance and declining sentiment in the overall economy, the condo sector managed to attain an absorption level averaging 57% for 2013.
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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